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Valued Member
Posts: 41
Registered: ‎09-24-2010
0

What hurts my score worse...?

A series of late CC payments and 3-4 credit card charge offs?  Or a bankruptcy?

Moderator Emeritus
Posts: 16,374
Registered: ‎03-12-2007
0

Re: What hurts my score worse...?

How severe are the lates? 30, 60, 90, or 120 days?

Are the charge-offs paid or unpaid?

How old are the lates and charge-offs?

Are you considering filing for BK instead of dealing with the lates and charge-offs?

Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
Valued Member
Posts: 41
Registered: ‎09-24-2010
0

Re: What hurts my score worse...?

Yes I recently became unemployed and am looking into the possibility of declaring bankruptcy.  My other option is to negotiate charge offs with my credit cards.  Or I could sign up with a debt management service, but I'm not sure I'll have the income 6 months from now to make the necessary payments. 

Moderator Emeritus
Posts: 16,374
Registered: ‎03-12-2007
0

Re: What hurts my score worse...?

In FICO scoring, "recency" reigns supreme. So, any major baddie (collection, charge-off, BK, judgment, 90-day-late or worse, foreclosure, etc.) that is less than two years usually tanks FICO scores. That said, from a FICO scoring standpoint, a BK "might" or "might not" tank your scores a bit more.

Credit Profile -
FICO 08 Scores (03-26-2015): EQ 814, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26 years ~ AAoA: 13 years ~ Util: 1% ~ Inqs: EX 1, EQ 1

Credit Cards: Amex BCP ~ Amex Clear ~ Amex Platinum ~ Barclay Ring Mastercard ~ Chase Freedom Visa ~ CITI Dividend Platinum World Mastercard ~ FIA Fidelity Investment Platinum Visa ~ First Hawaiian Bank Gold Visa
Valued Contributor
Posts: 2,487
Registered: ‎02-18-2010
0

Re: What hurts my score worse...?

A debt management company is the worst thing.

 

No need to pay someone else to do what you can do yourself for free.  Also, there are a ton of horror stories about them making your credit worse and perpetuating lates forever.


Starting Score: EQ 583 TU04 619 EX 592 (lender pull) 2010
Previous High Score: EQ 700 TU04 712 EX 726
Current Score: EQ 740 TU(Discover) 750 EX(AMEX) 747
Goal Score: 740+ all around


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Moderator
Posts: 16,447
Registered: ‎07-14-2009
0

Re: What hurts my score worse...?


mauve wrote:

A debt management company is the worst thing.

 

No need to pay someone else to do what you can do yourself for free.  Also, there are a ton of horror stories about them making your credit worse and perpetuating lates forever.


 

I have to respectfully disagree. One of our long time members marty56 has written extensively how a DMP helped him. DMP's can and do help folks without wrecking their credit. Here are some discussions about DMP's.

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Valued Contributor
Posts: 2,487
Registered: ‎02-18-2010
0

Re: What hurts my score worse...?

You are disagreeing with me everywhere today, sir!

 

OK, I hadn't seen a counterexample yet.  Perhaps "be very suspicious of debt management companies" is a better statement.


Starting Score: EQ 583 TU04 619 EX 592 (lender pull) 2010
Previous High Score: EQ 700 TU04 712 EX 726
Current Score: EQ 740 TU(Discover) 750 EX(AMEX) 747
Goal Score: 740+ all around


Take the myFICO Fitness Challenge
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