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Fall Off in August

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Anonymous
Not applicable

Fall Off in August

Hey everyone!

 

I have a quick question. I have an old lease termination mishap that hit due to co-signing on a lease that someone didn't pay at nearly $10,000. I'm trying to ascertain the impact this roll-off will have on my credit score. I don't know how much it will affect it since it's from 2009, but it's worth asking.

 

I've petitioned for early exclusion but to no avail with all three major bureaus. 

 

Any advice here will be helpful!

Message 1 of 6
5 REPLIES 5
Relique
New Contributor

Re: Fall Off in August

If it's still reporting a balance of 10000 then you should be seeing a score bump from utilization alone. If it's the last baddie on your report then the score bumb should be quite significant. Besides that, it's really hard to say without looking at the rest of the report.

Message 2 of 6
crrredit
Established Contributor

Re: Fall Off in August

I just had a collections account for an old lease for about that much fall off. I only got about 8 to 10 points. I have a newer collection account on my report still. FICO doesn't care how much the collection is for, just that it happened and how old it is. The only people who would care are lenders doing a manual pull and landlords.

Message 3 of 6
Anonymous
Not applicable

Re: Fall Off in August

It's the last baddie!! 

 

Well, the other ones have been paid, but they're still there. There's only 5 and two are $14 and $15... which is absurd. 

Message 4 of 6
Relique
New Contributor

Re: Fall Off in August

If balance from a negative tradeline is factored into utilization, then the amount owed does matter. Someone who has 100000 in available credit isn't gonna benefit as much from the exclusion of a 10000 delinquent account as someone who has 1000 dollars in credit. First example goes from 10% utilization to 0%, and the second goes from 91% to 0%. So the score bump from the account falling off will be different for both individuals due to the impact on utilization.

 

My experience has been that each negative tradeline that was removed only gave me a few points (5-15.) The last baddie that fell off boosted me by 45 points. 

 

Paid collections still hurt your scores but obviously look better for manual reviews. A landlord or a loan officer will likely be much more forgiving of a paid collection than an unpaid one. As for the two small collections you have, I would recommend a PFD to take care of them. If they are paid, try sending a goodwill letter to get them removed. The balances are so small that they should have little reason to refuse you.

 

 

Message 5 of 6
RobertEG
Legendary Contributor

Re: Fall Off in August

Debt on a lease is not revolving credit, and is not included in % util scoring.

Message 6 of 6
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