The term Re-Aging is generally used to clean up your credit history after you had a bit problem with your credit and you are back in control. Whenever an account is re-aged, it is labeled as current and is no more considered as a past due. As for example if you are a few months late with your credit card repayments, you may persuade your creditor to re-age your account. If your creditor agrees to your request, then you will not only gain by exemption of the late fees, but also you will no longer be considered as delinquent. To take it the other way, your missed payment are just ignored. Re-aging your account is thus good for your credit score as the “late” stain comes out of your credit report and you account is considered as current.
However, it is not so easy to make your creditor agree to re-age you account. It may not come free of cost. To make your creditor agree to re-aging, you may need to offer some form of payment immediately coupled with a schedule of more than minimum payments.
There are also government rules and guidelines relating to re-aging. These rules and guidelines have been set up by the Federal Financial Institutions Examination Council, which is a Government body authorized to make recommendations to promote uniformity in the supervision of financial institutions.
As per the policy resolution taken in the year 1999, the revised standard requires the borrower to express his eagerness and ability to repay the loan, for both open and closed ended credits. Moreover the credit account should have existed for at least nine months and the debtor should have made at least three uninterrupted monthly payments or an equivalent lump sum payment. In addition to this, the loan can only be re-aged once in every twelve months.
One thing should always be kept in mind while you are opting for re-aging. You must have all communications with your creditor in writing and under certified mail, since if re-aging does not take place you will have proofs to claim re-aging.
