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hard inquiries and Charge off or Collection

Regular Contributor

hard inquiries and Charge off or Collection

which of the two affected your score most?how long they stayed at your credit report?

Message 1 of 6
5 REPLIES
Established Contributor

Re: hard inquiries and Charge off or Collection

Points lost due to hard inquiries is the least of your worry, you'll get the points back after a year. Hard inquiries stay on reports for 2 years, but only included in scoring for the first year.

 

Charge off and collections are major derogatives, they hurt bad and continue to hurt your scores for as long as they remain on your reports. They stay on your reports for ~7.5 years from the date of first deliquency.


Starting Score (08/11/11): TU08: 643
Current Score: TU08: 741
Goal Score: Stay in the 700s; keep reports clean


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Message 2 of 6
Established Contributor

Re: hard inquiries and Charge off or Collection

+1

 

Delinquent accounts such as collections, charge-offs, etc are WAY worse than too many hard inquiries. Collections and charge-offs contribute to payment history, which is a huge factor in FICO scoring. Inq's contibute to FICO scoring as well, but not nearly as much.

Transunion: 713 FICO (5/13/2014) MyFico
Experian: 789 FICO (4/10/12) Lender Pull
Equifax: 695 FICO (1/10/14) MyFico

My cards: Chase United Mileage Plus 7000CL (3/12), CITI Simplicity 1800CL (9/12), Cap1 Platinum 1000CL (2/10), Cap1 Cash back 1500CL (11/11), Apple Barclay's 2500CL (11/11), Discover IT 6000CL (5/13)

My Primary Financial Goal is to put down my utl%.



Message 3 of 6
Mega Contributor

Re: hard inquiries and Charge off or Collection


mokong wrote:

which of the two affected your score most?how long they stayed at your credit report?


CO/Collections. Any derog. is going to hold your score down significantly if it is recent. As it ages, it slowly impacts your score less. INQ's are only 10% of your score and are gone after a year. Collections can last up to 7-7.5 Years.




EQ FICO 548 3/3/16
Message 4 of 6
Contributor

Re: hard inquiries and Charge off or Collection


LS2982 wrote:
CO/Collections. Any derog. is going to hold your score down significantly if it is recent. As it ages, it slowly impacts your score less. INQ's are only 10% of your score and are gone after a year. Collections can last up to 7-7.5 Years.

How long must a CO/Collection age before it impacts the score? I have two COs that are from 2008, I've been wondering what impact they are having....

Message 5 of 6
Community Leader
Epic Contributor

Re: hard inquiries and Charge off or Collection

When the charge-off or collection referral/reporting occured is not the governing date.

The date of first delinquency is the governing date that is considered the "adverse item of information" for purposes of impact and ultimate CR exclusion of a CO or collection.  That is the date after which a credtior or debt collector may take or report a CO or collection referral.  When they actually choose to do it or report it is up to them, and delays in doing such are governed under the FCRA in a manner that is intended not to adversely impact the consumer.

 

A debt collector can, for example, report their collection at any time.  If they report one day shy of 7 years plus 180 days from DOFD, it will live on your CR for one day.

The FCRA is structured to fix the impact date as the date they could have taken the action, not when they chose to do so.

Message 6 of 6