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Regular Contributor
pt2005
Posts: 129
Registered: ‎10-12-2012

Question: Percent of On-Time Payments & Charge Offs

Hi,

 

I noticed from my Credit Karma report that I have 90.71% on-time payment:

 

On-time Payment: 127

Total Payment: 140.

 

My first CC was issued in 2000 (still have it). Been through some bad years with several Chargeoffs in early 2010 but either PIF or settled. So I'm very clean now. But my question is how CK determines 127 and 140, based on what?

 

Also, do all (paid/settled) charge offs stay for 7 years? Can I work the CCC or Credit Bureaus to get them removed. It's been almost 3 years, and I never missed any payment. Util is always < 10%.

 

Thanks

FICO Scores: EX 744 (Quizzle), myFICO EQ 675, myFICO TU 708
Credit Cards: Chase Freedom 7k | Cap1 Spark Cash 5.5k | AMEX TrueEarnings 4.5k | Cap1 Cash Visa 3.5k | Cap1 Cash MC 3.5k | AMEX SimplyCash 3K | Discover IT1k
Store: PayPal SmartConnect 5k | JCP 4.2k | Banana 3k | Walmart 2.2K | Kohls 1500 | TargetRED 300
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: Question: Percent of On-Time Payments & Charge Offs

It's not really worth worrying about how Credit Karma comes up with that.  FICO doesn't use that method. 

 

As for the chargeoffs, they will stay on 7.5 years past the date of first delinquency.  The only way to have them removed earlier is to write GW letters.  That means goodwill letters.  You're basically just asking for a favor.  You write that to the lender, not the CRAs. 

 

When asking for a GW deletion, you basically want to explain in a succinct way what you are asking for, what happened, why it happened, and why it won't happen again/why you've become a good customer for them again.  You can search on the forums for examples of GW letters.  However, I would strongly encourage you to take a shot at writing yours before you search for examples.  There is no magic language that you need to use.  It's not governed by the FCRA, and you have no right to the deletion so you don't have to think that you need to use the right phrases, or sound like a lawyer, or anything like that. 

 

The reason I say this is that too many people look for an example because they are worried they are going to write the wrong thing, but then they can't get away from the example.  So they end up sending a letter that begins and ends the same way as thousands of other people's letters with only a couple details in the middle changed.  How do you think that plays out when the company receives the letter.  It's obvious that it is something you copied off the internet.  It's not personalized and it gets treated that way.  So try to write your letter first and then, if you must, search for examples and see if there is anything you want to edit in your letter.  But keep it your own. 


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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Regular Contributor
pt2005
Posts: 129
Registered: ‎10-12-2012

Re: Question: Percent of On-Time Payments & Charge Offs


Walt_K wrote:

It's not really worth worrying about how Credit Karma comes up with that.  FICO doesn't use that method. 

 

As for the chargeoffs, they will stay on 7.5 years past the date of first delinquency.  The only way to have them removed earlier is to write GW letters.  That means goodwill letters.  You're basically just asking for a favor.  You write that to the lender, not the CRAs. 

 

When asking for a GW deletion, you basically want to explain in a succinct way what you are asking for, what happened, why it happened, and why it won't happen again/why you've become a good customer for them again.  You can search on the forums for examples of GW letters.  However, I would strongly encourage you to take a shot at writing yours before you search for examples.  There is no magic language that you need to use.  It's not governed by the FCRA, and you have no right to the deletion so you don't have to think that you need to use the right phrases, or sound like a lawyer, or anything like that. 

 

The reason I say this is that too many people look for an example because they are worried they are going to write the wrong thing, but then they can't get away from the example.  So they end up sending a letter that begins and ends the same way as thousands of other people's letters with only a couple details in the middle changed.  How do you think that plays out when the company receives the letter.  It's obvious that it is something you copied off the internet.  It's not personalized and it gets treated that way.  So try to write your letter first and then, if you must, search for examples and see if there is anything you want to edit in your letter.  But keep it your own. 


I pulled this out from myFICO Quarterly report:

Payment after charge off/collectionChase Bank Usa Na
Account number: XXXXXXXXXXXX
Date opened: 6/2004
Settled—less than full balance
More Info

 

@Walt_K: Thanks for the detailed explanation. 

 

So when I write the goodwill letter, should I ask the creditor to (a) remove the account, or (b) change to a different report status (for example: "Paid as agreed"). 

Thanks?

FICO Scores: EX 744 (Quizzle), myFICO EQ 675, myFICO TU 708
Credit Cards: Chase Freedom 7k | Cap1 Spark Cash 5.5k | AMEX TrueEarnings 4.5k | Cap1 Cash Visa 3.5k | Cap1 Cash MC 3.5k | AMEX SimplyCash 3K | Discover IT1k
Store: PayPal SmartConnect 5k | JCP 4.2k | Banana 3k | Walmart 2.2K | Kohls 1500 | TargetRED 300
Senior Contributor
Walt_K
Posts: 3,065
Registered: ‎11-02-2009

Re: Question: Percent of On-Time Payments & Charge Offs

You ask for deletion.  Good luck with the GW.  Always free to post it back here and ask people for suggestions as well.  I just think it's really important for people to make a pass at it before looking at someone else's words.  For me, I find that once you are looking at someone else's example, it is difficult to put it out of your mind.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


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