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Established Member
rainbowbrite
Posts: 64
Registered: ‎09-11-2011

Re: MY credit scores have flatlined....??????

Can you explain to me....if you have an item on for 5 years it is not worth you getting it removed.  Because it will count against you.  ie.7 years reporting.  thanks

Established Contributor
jimbo831
Posts: 977
Registered: ‎02-08-2012

Re: MY credit scores have flatlined....??????


rckstrscott wrote:

Remember remember remember...

 

FICO is designed to show the probability of defaulting on loans/obligation in the next 2 years. Thats the whole point.. it is used as a predictor.. often times, it is mistaken that the higher your score, the higher the probability you will pay on time, but the truth is they are only looking for percentage of people who will default..

 

So you really need to work of a continually moving sliding 2 years scale.. the further your baddies move from 2 years at present, the better the score.. which is why nothing much changes on your reports, you see small incremental up ticks..

 

Payments and positives are essentially a wash. You are expected, as a consumer, to make payments..

 

Once you learn your sweet spot, you can kind of massage your bucket. I stopped goodwilling away my last three collections, because they are 5 years old .. if I got rid of them, as crazy as ths sounds, my FICO may go down.. because I will be put into the bucket with all the Fico High Achievers, and I would pale in comparison with no installment loans and no mortgages.. but in  my current bucket, with a high of 722, I look like Mother Teresa :smileyhappy: -- once I get my mortgage, I am going to resume goodwilling those collections..

 

I may have near topped out in my bucket. I still have a public record, and 3 collections showing..

 

-scott

 

 

 


Wow, in the 700s with a public record and 3 collections!  I didn't even think that was possible.  That does give me some hope that even if I don't get the last 2 things off my TU report that I will still be able to get to my goal of 700 across the board this year.

Gardening with: PSECU Combo $1k, Chase Freedom $3.5k, Discover It $1.7k, Amex Costco True Earnings $2k, Capital One Platinum $500, Best Buy Store Card $2.7k

Starting Score: FICO: 587 EX, 594 EQ, 632 TU, 2/15/12; USAA FAKO: 525 EX, 541 EQ, 525 TU, 2/15/12
Current Score: FICO: 678 EX, 629 EQ, 658 TU, 3/27/12; USAA FAKO: 721 EX, 721 EQ, 576 TU, 3/9/12
Goal Score: 700 Across the Board and Amex Zync or Costco By The End Of 2012


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Valued Contributor
rckstrscott
Posts: 2,656
Registered: ‎04-25-2011

Re: MY credit scores have flatlined....??????


jimbo831 wrote:

rckstrscott wrote:

Remember remember remember...

 

FICO is designed to show the probability of defaulting on loans/obligation in the next 2 years. Thats the whole point.. it is used as a predictor.. often times, it is mistaken that the higher your score, the higher the probability you will pay on time, but the truth is they are only looking for percentage of people who will default..

 

So you really need to work of a continually moving sliding 2 years scale.. the further your baddies move from 2 years at present, the better the score.. which is why nothing much changes on your reports, you see small incremental up ticks..

 

Payments and positives are essentially a wash. You are expected, as a consumer, to make payments..

 

Once you learn your sweet spot, you can kind of massage your bucket. I stopped goodwilling away my last three collections, because they are 5 years old .. if I got rid of them, as crazy as ths sounds, my FICO may go down.. because I will be put into the bucket with all the Fico High Achievers, and I would pale in comparison with no installment loans and no mortgages.. but in  my current bucket, with a high of 722, I look like Mother Teresa :smileyhappy: -- once I get my mortgage, I am going to resume goodwilling those collections..

 

I may have near topped out in my bucket. I still have a public record, and 3 collections showing..

 

-scott

 

 

 


Wow, in the 700s with a public record and 3 collections!  I didn't even think that was possible.  That does give me some hope that even if I don't get the last 2 things off my TU report that I will still be able to get to my goal of 700 across the board this year.


Yeah.. I have 5 active positive trade lines, a pretty solid AAoA, a 2 percent util.. and all my baddies are over 5 years old, so I think I am about maxed out :smileyhappy:

 

-scott

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX
Valued Contributor
rckstrscott
Posts: 2,656
Registered: ‎04-25-2011

Re: MY credit scores have flatlined....??????


rainbowbrite wrote:

Can you explain to me....if you have an item on for 5 years it is not worth you getting it removed.  Because it will count against you.  ie.7 years reporting.  thanks


It really depends on the item... Collection, ect.. yeah.. It is still impacting my credit at 5 years.. obviously it is still reporting. But since it is 5 years old, its impact is minimal in the scoring bucket I am in.. FICO uses different formulas for different credit risks.

 

If I were to remove all of my bad accounts, I would have a clean slate, but only credit cards, no installments, no mortgage on my credit report. Compared to MOST people wtith good credit, I would be judged as a higher risk because I have no other history aside from credit cards.

 

Compared to people with bad credit, I am considered a better risk than most.

 

It isn't a perfect science, and since I have not removed all the items I would never know for sure, however, there are many example of people dropping a little after removing their last bad account if they don't have compensating postive accounts.

 

There are MORE cases of people getting better scores when they remove all the bad accounts, so I am not saying you shouldn't but in my sitiuation I felt it was in my best interest to hang tight on those accounts.

 

-scott

 

Starting FICO Score: 10/10: TU 498 | EQ: 502 Current FICO Score(lender pull): 05/12: TU: 722 | EQ: 712 | EX: 686
Collections Removed: Hunter Warfield, CBE Group, Merchants Credit Guide, EOS-CCA, Enhanced Recovery, Portfolio Recovery, UCB, American Collection Company, Medical Business Bureau, Jefferson Capital, Credit Portfolio Associates, FCO, LVNV, Convergent, Armor Systems
Other Negative Entries Removed:Plains Commerce CO, HSBC CO, 2008 Judgment Santander Reposession

Still Working On: Illinois Paid Tax Lien,
Positive Accounts:10/10: 0 | 07/12: 6 | Mortgage Closed 5/12, Macy's AMEX $3900, Citi/Home Depot $2000, Capital One Cash Rewards $1500, Capital One Secured $500, Credit One Bank $500. Total Utilization: 6%. AAoA: 1yr, 7mth. INQS: 8 TU, 8 EQ, 4 EX
Regular Contributor
BlueNightStar
Posts: 181
Registered: ‎07-09-2011

Re: MY credit scores have flatlined....??????


rckstrscott wrote:

 

If I were to remove all of my bad accounts, I would have a clean slate, but only credit cards, no installments, no mortgage on my credit report. Compared to MOST people wtith good credit, I would be judged as a higher risk because I have no other history aside from credit cards.

 

Compared to people with bad credit, I am considered a better risk than most.

 

-scott

 


 I am in the same position and am doing exactly as you are. I have a collection and 3 60 day lates that are approaching 3 years old. My utilization has gone from 90%+ down to 30%. I believe that my scores will exceed 700 once I get my utilization down to <10%.

 

I also have no auto loan or mortgage and the highest limit on my CCs is one at $2500. I firmly believe I look much better compared to other people with derogs than I would compared to good credit people. My 60 day late pays are with a local utilitly company that refuses to remove them. Ever. So I am stuck with them for 7 years. I was upset at first but now realize that for a CC enhanced score I probably look fairly decent because I have no CC lates or COs.

 

 


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