TeamNoxious wrote:
Unsecured loan
No more credit cards
Already have agreements to make PFD for all except the Student Loan
Age history? 90 days or more delinquent, none in collections though
Age history is what is the age of your oldest account? Are you going to be removing it with a PFD?
OC is reporting them all
7 years SOL in CA.
And yes I have agreements to have all taken off my CR, I have certified letters from creditors
Don’t know what DFOD is
DOFD means the date your account first went delinquent and is the date that credit reporting time period is based on. The accounts remain 7 years past DOFD.
Don’t know what your mean by UTIL
Utilization is how much of your available credit are you using.
Ok, if you have no other CC, removing these accounts could cause a score drop for lack of a mix of credit.....since they are COs, I am unsure if they are being counted as part of the mix of credit(having different types of credit such as revolving, installment)
If any of these accounts are your oldest accounts, removing them will decrease the age of your credit history-- this could cause a score drop.
If they are being counted into your util.......paying/removing them may increase your score.
There is a good chance that you might see a score drop from doing this, not only for the reasons mentioned above but because of a new inquiry and new account from getting the loan.
However, with all that said.............myself, personally, if I could do it, I would.....especially if they have all accepted PFDs.
As for losing mix of credit, you can gain that back by opening a CC or two. It counts for 10% of your score.
As for losing history.....history only counts for 15% of your score and you can't gain that back as fast, but can certainly gain that back.
Payment history (collections, charge offs, late pays, etc) is 35% of your score. If you will have good TLs remaining that aren't charged off or have late pays, removing the negative can help here.
30% of your score is based on util. If these are included in util, then paying them/removing them could help a great deal.
It is really a gamble as to how your score is going to change or be affected. But your score can be regained in time.
Sounds like you have a chance to wipe off all negative and start over with only good TLs.
Others may disagree and you can make your own choice, but as I said-- personally I would do it.
Just don't get discouraged if your score drops or doesn't rise as much as you wish or expect after doing it.
Edited to add: There is also the possibility of being "rebucketed". This could help/hurt your score. Do a search here on the forums for "score buckets" , "rebucketed", "bucketing", etc.
Message Edited by sidewinder on
05-01-2008 10:41 PM
