01-06-2013 05:28 PM
I know the getting it off is just a matter of doing it now. No biggie there. I am not even worried about that.
What I am afraid of is the removal hurting my score instead of helping it.... because that was the result of my first dispute. Came off, but hurt my score instead of helping.
How can a predict what the end result will be?
My credit is pretty simple so I will just list it.
I have a mortgage in good standing 17 years, 3 years from payoff.
I have a credit card in good standing 5 years old, 5K limit, 1800 balance.
I have an auto loan in good standing 1 year old, only 12K balance left.
I have a loan that is in good standing over 1 year old, $5500 paid down to $3,000.
Then I have 2 other accounts that are in good standing, paid off but still young enough to be there.
Everything else is too long ago to show anymore.
Then I have this mess with the ATV.
17 year credit history because the mortage is the only thing I have that has been there the whole time.
Average age of accounts is stated at 5 years. (currently)
The first mistake I disputed was just a mistake and listed as a charge off. When it was removed my score went down instead of up.
I am trying to improve my score, not just dispute mistakes and fraud.
01-06-2013 07:35 PM
What is your present FICO scores? Assuming you pulled atleast your Equifax score from here, what was the score?
I understand what you are trying to find out and you say it hurt your score the first time around. What did your score drop to when you disputed the account?
If we start from the basics of knowing your score and how the dispute impacted we may have a better understanding to determine the outcome.
Just a general rule, removing negative information will always benefit you in the long run. No matter how much good history you had with the account beforehand, it is obsolete once the account went negative. While the initial removal may lower your score for reasons we cant see here, but an assumption is it could possibly lower your Utilization, and possibly lower you AAOA (Average age of accounts), it will rebound fairly quick.
What I am taking a shot in the dark here is that when you went to dispute the account and lost a few points, it had nothing to do with the dispute. Something else happened on your credit reports. Your Utilization increased from taking on more debt possibly your car loan? Maybe your Utilization increased cause your credit card took on more debt? A few variables to consider.
Now the good news in my opinion, if you have the account removed and lets say lost 10 points as an example. If you paid your credit card down to a 100 dollar balance I believe you will gain your 10 points or close to it almost immediatley back.
Credit scoring goes up and down daily even with no activity. Thats just how it works.
01-06-2013 10:37 PM - edited 01-06-2013 10:40 PM
The light bulb finally flashed and went on for me.... I get it now.
What caused my large drop in credit score for the removal of that mistake charge-off listing was.......
It's removal KILLED my average account age.
See at the time I paid it off I had waged war against debt. I didn't have problems, I just went through divorce... she left and took everything but the bills. I in turn decided that debt was an enemy and started getting out of it. I paid everything off but my mortgage and didn't borrow a penny for anything else for over 7 years, totally unaware that this was going to kill my credit. I paid all of it off in the 90's and actually went 10 years without as much as filling out a credit application.
That mistake charge off was the only other thing on my credit that had any age to it. It was about 18 years old and had been wrongly listed in 1997. So that part of the listing was so old that the account age was helping me more than the 15 year old charge-off mistake.
I will go ahead and get the ball rolling to get this fraud mess off my reports. Hopefully it will make a nice improvement. Wish I had already done it now.