DOES THIS QUALIFY??

Discussion in 'Credit Talk' started by JD, Feb 1, 2001.

  1. JD

    JD Guest

    If you re-finance a loan (I believe theoretically this means you pay off an original loan and are given a new one) does the original one become an inactive account. By inactive I mean, even though it shows on your credit reports, does the seven-year rule apply?? Have I made sense here?

    Here's the situation. I had an auto loan with Ford Credit. Over the first three or four years of the loan I had a lot of late payments. These are showing up on my credit reports. I re-financed the loan with Ford Credit. Now this re-financed loan shows up on my credit records as well as the original loan. The first loan has the worst record. The second loan has only one late payment. The first loan shows as closed, paid with 0 balance as of 9/95 (about 5 1/2 years ago). The second loan shows as closed, paid with 0 balance as of 6/2000. My question is, does the first loan qualify as having no action for 5 1/2 years? That would be 5 1/2 years towards the 7 year mark.
     
  2. jamie

    jamie Well-Known Member

    is there 2 different account numbers?
     
  3. JD

    JD Guest

    Jamie - you're back - you must be the expert on Ford Credit. No one else wants to take a shot.
    To answer your question. The first six characters are the same, the last four characters are different.
     
  4. jamie

    jamie Well-Known Member

    Oh, believe me, I'm no expert. I'm on a mission! Looks like 2 different acct numbers. Have you called FC? Or have you disputed with the CRA's?
     
  5. JD

    JD Guest

    I'm trying to decide which to contact first. My payments always went to Pittsburg, PA but when I was behind I was sending payments to Manchester, NH, which isn't very far away.
     
  6. sam

    sam Well-Known Member

    When you re-finance, the Second loan pays the first loan off (Closed paid).

    I've done this before (not ford) and this first loan become closed balance 0 paid as agreed.
     
  7. marvin

    marvin Well-Known Member

    I think this is the answer you

    The late payments should drop off 7 years from the month they were late. So if the loan does remain on you're report after seven years, all the negative info should be gone. I believe that positive info remains on the report anywhere from 7-10 years, up to the cra's descretion. Not positive on this, but I think it's right
     
  8. lbrown59

    lbrown59 Well-Known Member

    RE: I think this is the answer

    Should have agreement with old creditor any neg on old account must be removed before account is paid off with new loan!!

    Marvin wrote:
    -------------------------------
    The late payments should drop off 7 years from the month they were late. So if the loan does remain on you're report after seven years, all the negative info should be gone. I believe that positive info remains on the report anywhere from 7-10 years, up to the cra's descretion. Not positive on this, but I think it's right
     

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