General Credit Topics

[stee0616]

Quick question - anybody had PFD success with CAs?  If so, how much did you FICO score increase once the negative info was removed? 

The only collection on my report will be removed in 7-10 business days per PFD agreement.  I'm hoping my FICO will increase enough so I can qualify for a conventional mortgage by this Fall!

Message Edited by stee0616 on 03-31-2008 08:20 PM

[ivyalmighty]

I've had two deletes so far, but they were so old & both about 1 yr from falling off, that my score was not affected at all. The newer the collection is, the more your score will be positively affected.

[stee0616]

Collection was first reported in 2004.  Last report according to EX is 12/2007.  So do they use 2004 or 2007?

[ivyalmighty]

they'll use 2004. Depending on where you pulled your reports from, you may be able to see the date that account is set to fall off.

However, a PFD can never "hurt" your credit... it might not make your score skyrocket, but it will definitely make your report look "prettier" during a manual review

[Vanyel]

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However, a PFD can never "hurt" your credit...

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Just want to correct this statement.  A PFD in some situations CAN hurt your credit.  It most likely won't in this case, but for others that read the thread there are some cases when it can.

If the account you PFD is an old old account and you have a thin file then the loss of history can offset the point gain realized by removing the derogatory.

Van

[cheddar]

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Vanyel wrote:

____________________________________________________________________________________

However, a PFD can never "hurt" your credit...

____________________________________________________________________________________

Just want to correct this statement.  A PFD in some situations CAN hurt your credit.  It most likely won't in this case, but for others that read the thread there are some cases when it can.

If the account you PFD is an old old account and you have a thin file then the loss of history can offset the point gain realized by removing the derogatory.

Van

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CA accounts do not count towards average age or oldest account.

Losing a CA will never shorten your history.

[ivyalmighty]

Thanks, cheddar. That's what I thought, but wasn't sure.

Message Edited by ivyalmighty on 03-31-2008 08:52 PM

[Vanyel]

Understood Cheddar, just wanted to correct that blanket statement.  Lots of folks wouldn't make the distinction, and I'd hate to see them take an action based on what's a very clear statement that could be easily misunderstood.

Van

[fused]

Cheddar is correct with regard to collections! I would like to add that derogatory trade lines such as charge-offs do factor in credit history length and average-age of accounts.

[ivyalmighty]

So the delineation to be made is between a true COLLECTION account and a CHARGE-OFF account, right?

A collection will never hurt your score if it disappears, but a charge-off on a TL *might* if it's one of your older accounts?