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Common Questions

The most frequently asked questions regarding your credit.

What is "re-aging" and will it help my credit score?

"Re-aging" can mean more than one thing. One definition of re-aging is when a creditor turns the clock back on a past due account and reports the account as a current and not delinquent. The term has been defined as "Returning the delinquent account or open-ended account to current status without collecting the entire amount of principal, interest, and fees that are contractually due." This act will most likely increase your credit score. Re-aging is not, however, automatic upon request, but you will not get it if you don not ask for it. Some creditors will re-age accounts and some will not, depends on its individual re-aging policy. Also, there are legal guidelines concerning the ability of a creditor to re-age an open-ended (revolving) account. Federal law allows for a re-aging once in a 12-month period and no more than twice in a 5-year period. To re-age an account, the creditor must first agree to re-age. The account must be at least 9 months old and the creditor must be satisfied that you will be able to keep up the payments. You will need to prove this by making several payments on time and in full before the re-aging occurs. The federal rules mandate that the consumer make 3 consecutive minimum monthly payments or the equivalent cumulative amount (lump sum). For closed-end loans (e.g. auto), standards are a little different. Closed-ended loans are not re-aged, but extended, deferred, renewed, or re-written. An extension of a closed-ended loan extends the monthly payments and rolls back the maturity date by the number of months extended – the account is shown to be current when the creditor grants the extension. A deferral is when a lender allows the payment to be made after its due date – the account will appear current when the deferral is granted. A renewal happens when the creditor underwrites a matured, closed-ended loan at the principal amount on terms similar to the original ones. A rewrite occurs when the closed-ended loan is underwritten using significantly different terms. While willingness and ability to repay the closed-ended loan are still required, there is no age requirement concerning the length of time the loan has been around and no frequency caps. The credit repair attorneys at Smith & Garg are skilled in negotiating a re-aging treatment of consumer credit accounts, can determine if re-aging is an option for you and will strive to get the agreement from the creditor in writing.

Another definition of re-aging is when a debt collector or a third-party debt buyer that purchased a debt reports its delinquency to a credit reporting agency after the debt has been delinquent for 7 years. This type of re-aging will negatively affect your credit score. This is illegal and is covered by the federal Fair Credit Reporting Act. If any of your debts has been re-aged in this manner, you may have a cause of action you need to seek legal advice of a qualified attorney. The Smith & Garg credit repair attorneys will be able to counsel you regarding any potential claim for damages against a creditor that has illegally re-aged one of your accounts.

Contact the Credit Repair Attorneys at Smith & Garg today to get started!