I keep hearing people say that making payments to an OC or CA can hurt your FICO score by re-aging your DOLA.
I know that DOLA clearly has no affect on the statuory dropoff date of either baddies on an OC account (7 years from each baddie) or for drop off of a collection account (7 ½ years from the DOFD on the OC account). So DOLA has no affect on how long OC baddies or CAs remain in your CR.
What is apparently being inferred from the posts I have read is that the FICO algorithm actually updates the scoring of prior baddies due to a new DOLA during the period that it remains in your CR.
Again, my question does not go to the reset of DOFD, or to the date of dropoff of derogs from the CR, for that is clearly mandated by FCRA 605. But the FCRA does not regulate credit scoring, and thus does not speak to the affect of DOLA activity on scoring.
Does anyone know how FICO looks at DOLA for scoring of derogs? I sure don’t!
