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Regular Contributor
mokong
Posts: 138
Registered: ‎12-13-2011

hard inquiries and Charge off or Collection

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

Established Contributor
Guava
Posts: 767
Registered: ‎04-08-2011

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.


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Established Contributor
mAndrew1980
Posts: 707
Registered: ‎08-26-2011

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.

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Mega Contributor
LS2982
Posts: 15,434
Registered: ‎04-09-2011

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.




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Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
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Contributor
labsxtwo
Posts: 125
Registered: ‎02-11-2008

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....

Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

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.


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