@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
@Anonymous wrote:
- If the CA is refusing to PFD, I would just wait until it falls off. The impact of derogoratory items lessens over time as you know.
This is not true. The negatives will continue depressing you score until the day the last one is gone. I had the same issue - I couldn't get my scores above 625 no matter what I did until the last derog came off and my scores shot up almost 100 ponts in a day.
- Perhaps you can qualify for Early Exclusion in the next 3 months, since the collection will fall in 9 months. Generally, you can qualify for Early Exclusion if the item is to fall off in 6 months. I would contact the credit reporting agencies for more information. YMMV.
This is true. I got EE of three months or so on ever derog.
Check out this discussion on the myFICO forums for more insight: https://ficoforums.myfico.com/t5/General-Credit-Topics/quot-Early-Exclusion-quot-vs-Dispute/td-p/5221716
I am hoping someone with more knowledge than I will chime in soon.
Thanks for the reply.
I personally think this is a YMMV-type situtation. I based my response from this quotation:
"The effect of a mistake on your score will lessen over time
You might be thinking that waiting seven to 10 years for your credit score to rebound from one mess-up is a pretty long time. But just because an event is on your credit report doesn't mean that it will have a consistently damaging impact on your score until it drops off. In fact, the effect of a negative mark will substantially lessen over time.
"The impact of any credit event on a person's FICO score is strongest when it initially happens," says Anthony Sprauve, senior consumer credit specialist at FICO, which is responsible for creating the most widely used credit scoring algorithm in the U.S. "Current behavior carries more weight than past behavior."
So let's say you were 60 days late on paying one of your bills and a delinquency now appears on your credit report. You should expect to see an immediate, sharp drop in your FICO score, and the mark will remain on your credit report for seven years. But as time goes by, your score will improve because new information will be accruing and making the old mark less significant.
"As those [credit] events – negative or positive – fade in the rearview mirror with time and distance, they have less impact on the FICO score," Sprauve says. "The most current information has greater impact on the score calculation."
Source: https://www.usatoday.com/story/money/personalfinance/2014/11/30/credit-report-score/19033967/
I hate to trash FICO on their own Board, but when they tell you what they want you to know instead of what actually happens, it's time to call them out. My derogs depressed my score so that it changed at best 5 points plus or minus for several years. Adding new TL's didn't help and paying off a car loan and then a mortgage cost me almost 100 points between them. The day the negatives were removed my scores shot up almost 100 points. While I do have almost daily swings (charging a tank of gas and paying for that tank of gas will add and then subtract about 3 points) my scores are in the 785 to 795 range rather than 600-625.
Well technically what the Fico guy said is right for a late mark over time it lessens but it still costs points until it is removed, 30 day lates dont seem to make too much of an impact after 2 years but that can vary with ones profile. If you have other types of derogs like a CO or CA that continues to update monthly then yes you can get quite a large Fico move once they are removed. BK will also keep depression in score by a big number of points too was over 60 point increase when my BK dropped and my CRs became clean. We are not here to defend all things Fico either if they are wrong then they do need to be called out.
I think what will help you score the most right now is gardening (and hopefully getting those baddies removed). Gardening will age your lines and with time the repo and late will fall off if you can't get them off sooner.
