06-09-2012 08:25 AM
I had 1 joint car loan and 1 joint mortgage loan at a Credit Union back in Oct 2008. I had to short-sell my home due to a split and couldn't afford the mortgage by myself, and the account was 30days delinquent on Oct 2010 before the short-sell was approved in Dec 2010. After the short sell was approved, the account was closed, and the creditor reported it on my CR as "Closed; legally paid through settlement". When I checked my credit score back in February 2011, I noticed a 80 points drop in credit score due to the delinquency on the mortgage. However, over the past year the credit score went back up, and in April 2012 it was back in the 750s again. But I recently checked my credit score and noticed an 80 points drop to my surprised. I have not opened any new account for the past year and a half and I am current on all of my payments. When I checked my Experian credit report, I noticed the following status for the closed mortgage account:
Reported since 10/2008
Date of status 03/2012
Last reported 05/2012
Jan to May 2012: CLS
Jan to Dec 2011: CLS
Dec 2010: 90
Nov 2010: 60
Oct 2010: 30
Oct 2008 to Sep 2010: OK
From the status on the CR, it looks like the creditor is still reporting on a monthly basis to Experian?
The "CLS" was showing up every month under the "payment history" from Jan 2011 up till May 2012. Would the creditor update on a closed account such as mine (with a delinquent history), on a monthly basis hurt my credit score everytime they update? (even if there's nothing to update)
And the peculiar thing was the 1 joint car loan was closed and the balance was transferred to a new individual account; the loan was current, never late at the time of transferred. The original car loan was officially closed and reported on the CR as closed in Sept 2010. When i checked my Experian credit report this month, the status of this car loan is as follow:
Status: Paid, Closed/Never Late,
Status Details: This account is scheduled to continue on record until Sep 2020.
Date Opened: 04/2010,
Date of Status 09/2010,
Last Reported 09/2010
Payment History stopped at Sep 2010 CLS (no new updates every month to show the account is CLS)
The Status Details: "This account is scheduled to continue on record until Sep 2020". This statement means the closed account will remain in the CR till this date? And I'm assuming it won't be updated on a monthly basis since the last reported date was back when it was closed.
I'm just puzzled as to why my credit score dropped suddenly when I had not make any changes to my credit in the past year and a half ,and for the Closed car loan, I didn't see the same status that I saw with the Closed Mortgage loan... I'm not sure what to make of this.
Is it possible for my credit score to take a dip for the same deliquency over and over again in the span of the 7 years the account will remain in the CR?
Please help! Thank you!
06-09-2012 02:21 PM
OP, you mentioned you saw the change on Experian, right? Was the score from Experian too? If so, and assuming a lender or a CU didn't provide that, then ignore the score. It isn't a FICO score. A few years back Experian blocked consumers access to their own FICO score; you cannot buy it from anywhere without the help of a lender. There are other scoring systems out there totally unrelated to FICO and those scores can go up and down all the time, but your FICO wouldn't do the same.
Based on what you posted, I wouldn't see a reason for any FICO drop, even if updated.
I don't know what "CLS" is. Closed?
Based on Experian for that other TL, they are reading it as a positive account. Positive accounts typically remain for 10 years from the date of closure. Negative accounts must drop by 7 to 7.5. Your lates for the mortgage will drop in 2017.
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