Reply
Established Contributor
bigblue7722
Posts: 1,045
Registered: ‎05-17-2013

Amount owed on delinquent accounts?

How much does the amount owed on delinquent accounts effect your score? I have about 5k in one delinquent student loan that I almost done rehabbing so when the rehab is over I wont owe anything in delinquent accounts. How much of a score boost could i see? When the rehab is done the only thing neg left on my cr are ten sallie mae late payments.

 


Last APP 5/24/14- Going for a house in 2015
TU08 Fico Score (685)-Goal Score-(750)
CSP $5000,Capital One Quicksliver $3500, Discover it $3000,Chase Freedom $2200, Barclaycard rewards $1500, Sallie mae barclaycard $1400, Fingerhut $1400, Paypal smart connect $1000, Chase Amazon Visa $1000, Seasons FCU card $500
Moderator
09Lexie
Posts: 24,507
Registered: ‎09-13-2012

Re: Amount owed on delinquent accounts?

AFAIK, anything over$100 would have the same impact on your CS. Upon manual review a smaller amount might be viewed better but a 120 day del acct is a major derog.
Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Amount owed on delinquent accounts?

As I understand the question, it relates only to the impact on scoring in the util of credit category, and not on the continuing impact of any derogs that are continuing to be sccored under your payment history category?

 

The student loan is scored as installment, not revolving, so it does not have a "percent util of credit" per se.  It has a percent reamining of the initial loan amount.

You thus have no credit limit that the creditor will reduce to $0 on a closed account once paid.  Once a revolving is paid and its CL is reported as $0, it is removed from scoring under % util.  Your balance goes to $0, but so does the former CL.

 

As for installment credit, FICO scores the percent remaining on a loan at a much, much lower weighting than % util of a revolving line of credit.

It is not a significant scoring factor. 

Once paid, I would not expect much score improvement in util of credit.

 

The remaining derogs that were reported on the delinquent account are of much more scoring impact, and seeking their GW deletion is usually the primary way to get improvement on a previously delinquent account.

Contributor
Dapper_Dan
Posts: 124
Registered: ‎08-13-2012

Re: Amount owed on delinquent accounts?

I have two revolving accounts that were opened 12 months ago and carry $0 balances.

 

I also have two revolving accounts that were charged off (one in 2009 and the other in 2012) and they carry a utilization rate of 117%.

 

When I pull my score and my reports, I always get "balance on revolving accounts too high."

 

In short, yes, a CO account will still factor in until it falls off the reports.

 

On one of the CO accounts I have, I made some payments to bring utilization down.  I think it's working on bringing my score up, but only by 9 points.

 

In my state, the SOL is 3 years. If I make a payment on the 2009 CO, it will reset the SOL and they can sue me.  I don't want that so all I can do for the time being is dispute it as a time-barred debt that needs to be removed - but that is considered poking the bear.  All I want to do is bring down utilization on the CO from 2012 and increase limits on the current paid accounts to increase my score.  It's working.

4/2012 **Paid off 60 month car loan in 60 months**
6/11/2012 500 Auto EQ (CarMax)
7/2012 **Paid off 60 month VW car loan in 32 months**
8/13/2012 584 TU myFICO
8/16/2012 577 EQ myFICO
8/18/2012 **New $500 CC from WalMart** (1st CC since 2008)
8/19/2012 **New $200 CC from Capital One** (2nd CC since 2008)
Established Contributor
bigblue7722
Posts: 1,045
Registered: ‎05-17-2013

Re: Amount owed on delinquent accounts?


RobertEG wrote:

As I understand the question, it relates only to the impact on scoring in the util of credit category, and not on the continuing impact of any derogs that are continuing to be scored under your payment history category?

 

The student loan is scored as installment, not revolving, so it does not have a "percent util of credit" per se.  It has a percent remaining of the initial loan amount.

You thus have no credit limit that the creditor will reduce to $0 on a closed account once paid.  Once a revolving is paid and its CL is reported as $0, it is removed from scoring under % util.  Your balance goes to $0, but so does the former CL.

 

As for installment credit, FICO scores the percent remaining on a loan at a much, much lower weighting than % util of a revolving line of credit.

It is not a significant scoring factor. 

Once paid, I would not expect much score improvement in util of credit.

 

The remaining derogs that were reported on the delinquent account are of much more scoring impact, and seeking their GW deletion is usually the primary way to get improvement on a previously delinquent account.


My question was regarding this website http://www.scoreinfo.org/FICO-Scores/Pages/Score-Factors.aspx. Basically I was going thru all the different things that can effect your score. Gw will not work with my sallie mae lates so I am trying to make everything else as perfect as possible. I saw this on the website: Amount owed on delinquent accounts-  The amount you owe on your past-due accounts is too high. Late payments are a very powerful predictor of future payment risk and the higher the balances on past-due accounts, the greater the risk.

What to do about this: You should try to get caught up on these past-due amounts and continue to pay your bills on time.

 

Funny thing is that My loan has more left on it now then when it started due to fees lol the loan was for 5k and now with fees its about 5300. I will scrap for every point possible so every little score boost matters to me. As soon as the rehab is over the loan will be paid in full.

 

Here is the worst part about my loan though. It started with Citibank I have 4 lates then it got sold to sallie mae which I have the ten lates. They are not double reporting the lates each late is right but it sucks that It was sold. So now it looks like I screwed up on two loans or have two bad tramlines when it should only be one. I didn't think it was that big of a deal until I read this: Number of accounts with delinquency-Your FICO® Score takes into account missed and late payments in a few ways. These include the number of late payments, how late they were and how recently they occurred. Your score was hurt because your credit report shows multiple accounts with missed payments or derogatory descriptions.  How is it my fault that Citibank decided to get out of the student loan business? I know I should have paid on time I was going thru a terrible family tragedy at the time. From what I have heard its not a huge scoring issue but as I said I need to scrap for every point possible.

 

 

 


Last APP 5/24/14- Going for a house in 2015
TU08 Fico Score (685)-Goal Score-(750)
CSP $5000,Capital One Quicksliver $3500, Discover it $3000,Chase Freedom $2200, Barclaycard rewards $1500, Sallie mae barclaycard $1400, Fingerhut $1400, Paypal smart connect $1000, Chase Amazon Visa $1000, Seasons FCU card $500

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+