09-14-2012 08:12 AM
This is my first post, so be kind.
I am looking for opinions on my dilemma- keep one 4yo 30 day late on a paid and closed 72 month auto loan, or get the account removed entirely.
Here is the context:
I am coming up on the 7 year drop for a discharged chapter 13 BK. The BK as well as all of the accounts included will come off. The auto loan was included, but it is not currently coded as such on TU and EQ (but not showing the late on EQ-so I will leave it alone there). It does show IIB on EX so it will come off EX. If I were to just challenge the late (it is not legit) or seek a GW, I think the creditor may correct the BK issue at the same time, so I am thinking this is all or nothing.
When all of those accounts are removed, it will leave a very weak 7 year period in my file. The only open accounts for the full period showing will be 2 student loans, and Target. I now also have 18 month old rebuilder and an 18 month old mortgage. There are closed credit cards and mortgages from before that will stay on a little longer. But this will be the only negative on the report.
Any thoughts? Score impact or otherwise?
09-14-2012 09:06 AM
The general wisdom is that a single 30-day that old has virtually no impact for most people, at least for those with scores below 700.
I did notice that a single 30-day that was about to fall off kept me in the 750 range.
I have to guess that you are far better off leaving it alone. I am not familiar with BK but if it falls off then the one loan filling in the time would look much better to lenders.
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