Can you “revive” old accounts for your reports??? Yes…we’re talking about ZOMBIE CREDIT

If you are looking for ways to improve the health of your credit you going to start investigating all possible options. Aside from opening a new account to add a PRIMARY TRADELINE to your credit there are a few other methods that may work. A popular topic of discussion is the idea of Zombie Credit. Let’s take a minute to gain some clarity on what the idea of Zombie Credit is, and how it works.  

This is a very broad concept (and currently popular regardless of it being an old practice). If we simply look at the key word…

  • Zombie – undead, unnaturally brought back to the living

Let’s apply this concept to credit (accounts). Zombie credit is basically closed accounts that have been dormant for some period of time that you are taking action to reaffirm and claim responsibility. 

Now, what types of accounts can go inactive? Unpaid accounts – typically accounts that have been written off by the lender, or have been sent to collections. “Reviving” zombie credit is simply purchasing the account from the creditor (usually at a far discounted rate of what the account was originally worth). As the owner of the account you become a creditor. Technically you can only report this information to the credit reports of the individual to which it originally belonged. Most people utilizing zombie credit typically report it to their own reports hoping for benefit. 

Let’s take a look at the benefits of this option, and the drawbacks:

Pros

  • Typically low cost
  • Reports payment history
  • Plenty of options available as there are uncountable unresolved debts

Cons

  • Usually an account that has a negative status (charged off or collection status…this is why there are so many of them)
  • Reports ALL payment history…if it’s been charged off or sent to collections there are probably some late payments on the account
  • REQUIRES questionable practices to acquire and actually have it show up on your credit reports which could result in serious repercussions to the health of your credit
  • LABOR INTENSIVE – it’s not as simple as fill out a form and it’s showing up on your credit reports some time later

Just looking at the number of benefits against the number of drawbacks it’s clear to me that there are more drawbacks to this method of adding aged PRIMARY TRADELINES to your credit reports. That is my opinion, ultimately you have to make the choice in how you choose to manage your healthy credit. If you are investigating different options on adding PRIMARY TRADELINES to your credit check out some of these great OPTIONS!