How to Transfer Credit That Is More Than 10 Years Old

Old credit, depending on how well it has been paid, can be either very helpful or highly detrimental. If you have old debt that you need to transfer to a different account, the process is relatively simple. However, before you jump into a debt refinance, there are several factors you should weigh. In addition, it's important to keep in mind that transferring debt (also known as refinancing) will probably incur fees--sometimes, overwhelming fees.

Instructions

1

Pull a copy of your credit report first. This will show when the account was opened, how much is still owed, how much credit is available, how well it was paid, and whether there are any negative marks on it. Visit AnnualCreditReport.com to request a free copy of your credit report.

2

Review the statute of limitations for consumer debt for your state if the debt is seriously delinquent. Most states (see Resources section) allow consumers to expunge very old debts that are a certain number of years old.

3

Research lenders for a debt refinance, if you cannot expunge the debt. Use your credit report as a guide when you begin searching lenders. For example, if you have great credit, you should look only at local banking institutions (including credit unions). However, if you have some credit problems, you must also look at finance companies, such as Wells Fargo Financial and HSBC Financial.

4

Apply at a few lenders to get multiple options. Give all loan officers your income documents and the existing loan documents. This will help the underwriters put together accurate preapproval offers. Review all loan offers side by side. Pay close attention to fees, interest and term.

5

Compare all loan offers to your current loan. You do not want to take on a new loan that will not put you in a worse financial situation. For example, if your current loan has an adjustable rate, you should look for an offer that comes with a fixed interest rate.

6

Contact your current lender and ask for a payoff statement. This statement will include the total amount needed to repay the loan--including all fees, interest and a per diem for any days past the expiration date on the payoff statement. Give this statement to your new loan officer.