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Does this make sense?

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guiness56
Epic Contributor

Re: Does this make sense?


@rckstrscott wrote:

@guiness56 wrote:

I was informed that FICO does score a settlement comment on par with the CO.   Now, the gain you could get from settling/paying could be evened out by the loss for the settlement and you break even.


I wonder if this is the same across older flavors of scoring, because although I believe you, I did not see see this at all in my personal recovery.. and I was pretty anal in charting, mapping and keeping everything.. I even went back after this post to go over my old reports and scores back to 2010.. I was curious if maybe I was just rusty... haha

 

I understand the YMMV principal, so in the future I will defer to yours and llecs knowledge on this subject as community leaders, and since your collective experience has helped me countless times, but I still don't know if I buy it this time...

 

-scott


LOL.  I have no personal experience with this.  Just passing along what I was told. 

 

And remember, your current scores will also factor into the score loss or not.  Read this:  http://www.myfico.com/crediteducation/questions/Credit_Problem_Comparison.aspx

 

Message 21 of 23
sharriel
Frequent Contributor

Re: Does this make sense?

Guiness...I'm not sure if I understand what you are saying.

5/16/13 Starting FICOEQ: 521 FICOTU: 536 FICOEX: 571
5/13/14 Current FICOEQ: 668 FICOTU: 690 FICOEX: 673
Message 22 of 23
guiness56
Epic Contributor

Re: Does this make sense?

I just got clarification for the comment I made.  Yes, FICO does score the settled comment because creditors don't like to see that.  However, you are NOT dinged twice.  It is trading one bad status for another, which is scored the same as the CO would have been.

 

If a CO TL has not updated in a while and you settle the account then you might see a score loss due to the settlement.  Which is like an old collection account updating and dropping your score because it makes it look new.

 

Hope that makes sense.

Message 23 of 23
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