topic Credit Seminar - Interesting Information and Question(s) in Understanding FICO® Scoring

Credit Seminar - Interesting Information and Question(s)

Lucid08 — Tue, 09 Aug 2011 05:56:35 GMT

If this belongs in the Auto FInancing section, feel free to move it.

I recently attended a credit seminar while at a local community college, and some of the imformation that was offered dealt with FICO scores associated with Automobile/CC/Mortage Enhanced Scores..

One of the presenters offered information on Auto/CC/Mortgage-Enhanced FICO Scores, but some of this information has me a little stumped. According to what I have read on this site over the past 3-4 years, most derogatory items will fall off after 7 years(with the exceptions of course) However, the presenter noted that when Lenders request and use the Auto/CC/Mortgage-Enhanced FICO scores, the information that derives these scores can be from a time period well beyond the 7 year mark. The presenter made it sound that if a person has ever had an Auto repossessed, an Auto loan go very late, a CC go into default or a Mortgage foreclosed, that this information could(would) be included in these Enhanced FICO scores, and that the potential lenders would be able to see the bad loans/accounts, regardless of age.

I thought I would come here and see if I could get some clarification on this issue, seeing as how the majority of derogatory items fall off a persons credit report after 7 years. So I would like to ask if these Auto Enhanced FICO scores, along with Credit Card Enhanced and Mortgage Enhanced specific pulls can actually carry information that goes beyond the 7 year mark??

::Edited for Grammar::

Re: Credit Seminar - Interesting Information and Question(s)

kjm79 — Tue, 09 Aug 2011 20:00:48 GMT

While I can't say for 100% certain if that's true or not, I can say this. Derogatory info does fall off of your REPORTS after approx 7 years (with some exceptions). But all of that information is still contained within your credit FILE if I'm not mistaken. Meaning when formulating a score such as one of the enhanced scores, it may very well take into consideration those older items still on your FILE. Very interesting information. This kind of sounds like a RobertEG kind of question.

Re: Credit Seminar - Interesting Information and Question(s)

beamMEup — Wed, 10 Aug 2011 06:34:10 GMT

Here's a blast from the past (2007 to be exact).

In this myFICO thread, moderator Tuscani indicates that auto scores rate you more on how you've managed your previous auto credit and that auto scores calculate against the same credit file as your "standard" FICO scores.

Hope that's helpful.

Re: Credit Seminar - Interesting Information and Question(s)

Lucid08 — Fri, 12 Aug 2011 20:35:14 GMT

beamMEup wrote:
Here's a blast from the past (2007 to be exact).

In this myFICO thread, moderator Tuscani indicates that auto scores rate you more on how you've managed your previous auto credit and that auto scores calculate against the same credit file as your "standard" FICO scores.

Hope that's helpful.

I read that very thread prior to making my OP, yet I saw lines in the same post by Tuscani that said: "Have you ever settled an auto loan or lease for less than you owed?", with"ever" being the key word here, which indicates that what the presenter hinted at the credit seminar, could be true.

Re: Credit Seminar - Interesting Information and Question(s)

RobertEG — Sat, 13 Aug 2011 00:38:10 GMT

What he said apparently was a reminder that the cessation of derogs from your CR does not mean that other information on the account ceases to affect your credit scoring.

That is correct. The aging of a delinquency or derog from inclusion in your CR, and thus in credit scoring, does not remove any other information on the account, such as its age, or payment history/derogs related to other reported items of information.

Information they receive from your CR can theoretically extend back to day one on any account, except for specific items of information that have reached a certain CR exclusion date.

Re: Credit Seminar - Interesting Information and Question(s)

GypsyGal — Sat, 13 Aug 2011 16:52:45 GMT

RobertEG wrote:
What he said apparently was a reminder that the cessation of derogs from your CR does not mean that other information on the account ceases to affect your credit scoring.
That is correct. The aging of a delinquency or derog from inclusion in your CR, and thus in credit scoring, does not remove any other information on the account, such as its age, or payment history/derogs related to other reported items of information.
Information they receive from your CR can theoretically extend back to day one on any account, except for specific items of information that have reached a certain CR exclusion date.

I am confused... Let's use this example... I have a credit card on which I have not been late in over 6 years... but, I have some 60 and 90 day lates on that card in 2002 & 2003... Are you saying that because the account is still open, creditors can access that old information?

I also have 2 30-day lates in 2004 on that card that I expected to drop off soon.