Negative indicator turning to positive

tdglass1 · ‎02-08-2016

I have a 90 day late payment from a school loan, I have been making on time payments since that date. My free annual credit report tells me that this loan will become a positive indicator sometime in October of this year (2016). My question is how much of an increase will my credit score see once this turns to a positive? I have no other negatives at all. My score as of two months ago was 710. If more info is needed Ill be happy to supply, just curious if it will stay relatively the same or if I will see a rather large jump (20-30) points on my score. Thank you, -Tim.

Anonymous · ‎02-08-2016

@tdglass1 wrote:
I have a 90 day late payment from a school loan, I have been making on time payments since that date. My free annual credit report tells me that this loan will become a positive indicator sometime in October of this year (2016). My question is how much of an increase will my credit score see once this turns to a positive? I have no other negatives at all. My score as of two months ago was 710. If more info is needed Ill be happy to supply, just curious if it will stay relatively the same or if I will see a rather large jump (20-30) points on my score. Thank you, -Tim.

A lot depends on what your current credit profile looks like. Some references say a 90 is a major derog, some say anything under 120 is a minor derog. What you might see when it drops is mainly going to depend on what current accounts you have that are putting upward pressure on your scores and whether or not you are hitting a glass ceiling.

I would make sure you have low UTI% when it comes off, because you will be rebucketed when it does, and scores are much more sensitive to UTI% when you are in a clean bucket.

tdglass1 · ‎02-08-2016

Very interesting, this is the first time I have heard of rebucketing. From the sounds of it people have had some bad experiences being grouped into a different category, dropping their scores (temporarily). My account that has the 90 day late, I am still paying towards it, as it is my longest standing term loan of 6+ years. I have two other term loans (6 months old & 2 years old), two revolving credit cards ($500 & $3500) both with zero UTI% . I have had 3 other term loans in the past completely paid with no derogs, theyre not active however. If my longest standing loan has the only derog on my whole credit profile, would that mean once its turned into a positive indicator it most likely make my score go up? I guess I will really just have to wait and see after I get rebucketed, and I get pooled with people w/o any 90 day late derogs?

Anonymous · ‎02-08-2016

@tdglass1 wrote:
Very interesting, this is the first time I have heard of rebucketing. From the sounds of it people have had some bad experiences being grouped into a different category, dropping their scores (temporarily). My account that has the 90 day late, I am still paying towards it, as it is my longest standing term loan of 6+ years. I have two other term loans (6 months old & 2 years old), two revolving credit cards ($500 & $3500) both with zero UTI% . I have had 3 other term loans in the past completely paid with no derogs, theyre not active however. If my longest standing loan has the only derog on my whole credit profile, would that mean once its turned into a positive indicator it most likely make my score go up? I guess I will really just have to wait and see after I get rebucketed, and I get pooled with people w/o any 90 day late derogs?

Get a third credit card. You need to have three to show optimal UTI%. Allow just one of the card to report a balance of less than 10% of its limit, and make sure the other two show no balance. If you get your UTI% at that point when it falls off you will likely see a decent bounce.