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praise123
Posts: 108
Registered: ‎06-24-2012
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Does Paid In Full Baddies Still Lower Your Score?

So, I had a some baddies on my report (2) in 2008 and (1) in 2010.  Everything is paid in full, and I have established new credit that is paid on time every month.  My utilization on Credit Cards in 8% or less and my other loans are paid ontime. My question is I keep hearing people refer to baddies still reporting?  What does that mean?

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MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009
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Re: Does Paid In Full Baddies Still Lower Your Score?

[ Edited ]

praise123 wrote:

So, I had a some baddies on my report (2) in 2008 and (1) in 2010.  Everything is paid in full, and I have established new credit that is paid on time every month.  My utilization on Credit Cards in 8% or less and my other loans are paid ontime. My question is I keep hearing people refer to baddies still reporting?  What does that mean?


By federal law there is a CRTP (Credit Reporting Time Period) that dictates how long negative items can report.

 

For example late payments can report for no longer than 7 years from each individual date of delinquency. Charge offs and collections can report for up to 7.5 years from the DoFD (Date of First Delinquency) on the OC (Original Creditor) account that led to the CO or collection. And even if the CO or collection is paid they will continue to report for the entire CRTP unless removed early.

 

That's why there is so much talk of PFD's (Pay For Delete) and GW (Good Will letters) whereby you try and get those negatives removed early.

 

Different types of negatives will impact your credit in different ways. What are your negatives from 2008 and 2010?

Established Contributor
jamie123
Posts: 822
Registered: ‎03-22-2012
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Re: Does Paid In Full Baddies Still Lower Your Score?

Having baddies on your report will lower your score for 7 years or until they disappear. Just because they are paid, they are still BAD.

 

You should have negotiated for PFD (Paid for Delete) before you paid them off. At that point you have some leverage with the lender. ("I will pay it if you delete it!)

 

Now, you need to write good will (GW) letters asking them to delete the baddies. This sometimes works with the first letter but may take multiple letters and sometimes never works.

 

It is definitely worth trying the GW letters. All they can say is no.

 

The rebuilding forum is a great resource for learning how to write GW letters.



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Established Member
albinotiger
Posts: 13
Registered: ‎07-12-2012
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Re: Does Paid In Full Baddies Still Lower Your Score?

Could you clarify that dofd "that lead to the collection"...what if you had a few lates then became current for , say 6 payments, then the account falls into collection after that..would the earlier lates count as the first dofd...
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llecs
Posts: 32,881
Registered: ‎08-04-2007
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Re: Does Paid In Full Baddies Still Lower Your Score?


albinotiger wrote:
Could you clarify that dofd "that lead to the collection"...what if you had a few lates then became current for , say 6 payments, then the account falls into collection after that..would the earlier lates count as the first dofd...

I'm not MVV, but DOFD is the date of first delinquency. This is the date you first went late and never ever recovered again. So for example, if you have a 30, 60, 90, but then brought the account current for a few months, and were late again 30, 60 and so on until it went to collections, then the DOFD was reset and the 2nd 30-day is the new month for the DOFD.

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MarineVietVet
Posts: 14,084
Registered: ‎07-14-2009
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Re: Does Paid In Full Baddies Still Lower Your Score?


llecs wrote:

I'm not MVV, but DOFD is the date of first delinquency. This is the date you first went late and never ever recovered again. So for example, if you have a 30, 60, 90, but then brought the account current for a few months, and were late again 30, 60 and so on until it went to collections, then the DOFD was reset and the 2nd 30-day is the new month for the DOFD.


I couldn't have said it better.


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