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| Can reaging my accounts help me boost my credit scores? |
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Last Updated
6th of November, 2009
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Re-aging (also known as “curing” or “rollback”) involves changing the delinquency status of an account. It can be either positive or negative. If you have had credit problems but you are getting back on your feet, positive re-aging can help.
Positive re-aging is designed to help customers who are making an effort get back on their feet after financial problems. Once you fall behind on a bill, it can be difficult to catch up. Unless you can come up with a large lump sum to pay off your debt, your account may be reported as late every month, even though you are making payments. (These are called “rolling lates.”) To prevent these types of accounts from being listed as delinquent every month, the bank or card issuer can re-age them so they are reported as current.
In this type of re-aging, an account that was reported as late each month to the credit reporting agencies will now be reported as “Paid on time.” Sometimes the financial institution will go back into the past payment history and bring all of the delinquent payments current. In other cases, the account will simply be listed as “Paid on time” for the current month and going forward.
Tip: If you enroll in a Debt Management Plan (DMP) with a credit counseling agency, many creditors will re-age your accounts after you make three monthly on-time payments. This can be helpful for your credit scores. Ask your counselor whether your creditors re-age accounts.
Not sure how to handle your debt? Find out more about debt help and services.
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