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Here's a little known credit secret. Let's say that you or someone you know got into a bit of a bind some months ago and you have some credit accounts with late fees and over the limit charges. These "lates" affect your credit score.
The good news is that you can improve your credit score and get rid of the history of late payments by asking your creditor to "re-age" your account.
What is re-aging you ask? It's when your overdue credit card account gets zapped back to current. It's like starting the clock over. Say you're three months late on your credit card payments. If the creditor agrees to re-age your account, those three months are wiped out. Missed payments are forgiven. Late fees stopped.
You still owe the same amount of money, but you are no longer delinquent. You get a fresh start and your lender has one less delinquency to report.
There is a little catch though. You see, the length of your credit history is one of the five factors that affect your credit score. When an account is re-aged, it is reset in your credit report back to "zero" years. So, if you've had a credit card for 4 years, you lose those 4 years of credit history. This means that re-aging your oldest account may actually take away points on your credit score, but getting rid of several late payments that were made in the last 12 months or so should more than off-set that.
To be considered for re-aging:
- You must demonstrate a renewed willingness and ability to pay.
- The credit card account should be at least nine months old.
- You should have made at least three consecutive minimum monthly payments or the equivalent sum.
There are also limits on the number of times an account can be re-aged. A creditor may re-age an account only once in a 12-month period and twice in a five-year period for open-ended accounts such as credit cards.
Here are some tips for getting the ball rolling. First, be sure you ask nicely. Re-aging is not a requirement, it's a favor.
Next, if they haven't agreed yet, use this phrase: "The specifics of re-aging are set up by the Federal Financial Institutions Examinations Council, outlined in its Uniform retail Credit Classification and Management Policy. Could you please check the guidelines to see if I qualify?" Quite a mouthful isn't it?
I also want you to know that when you are buying or selling your home, you could be missing out on a great opportunity. Please, if you haven't already; call me to get accurate information before making a decision.
Don't wait; call me soon to get informed, educated and empowered to do what is best for you and your family. Don't you owe that to yourself?
Thanks for allowing me in your life every week, I look forward to hearing from you soon!
Sincerely,
Ken
951-760-3833
CA DRE License #01418440
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