CHARGE OFFS DROPPING OFF

Anonymous · ‎05-21-2017

I have two charge offs that are going to fall off in June.....they are the only delinquents on my file. Once I reestablished about 3 years ago, I have perfect pymnt history on 14 CC--2 unsecured loans, one closed, paid as agreed. 1 30k auto loan. ....My question is, will my scores increase at all once the co's have been removed. EVERY app has always reflected a statement saying..serious delinquency in reference to these two. I have a Merrill Lynch + card that I asked for a CLI and the reason for denial was the two charge offs. The account analyst said they are keeping my account from growing..they are the only one that this has happened. So, can I expect a scoring increase when they fall off?

Anonymous · ‎05-21-2017

Yes.

Anonymous · ‎05-21-2017

What are your current FICO scores? Depending on your profile, having these only 2 major baddies fall off could result in a 50-100 point gain. I'd estimate in the 70-80 point range without knowing anything at all about your profile. If you can provide some more profile data we can give you a more educated estimate. The gain will be significant though without question.

Anonymous · ‎05-21-2017

@Anonymous wrote:
What are your current FICO scores? Depending on your profile, having these only 2 major baddies fall off could result in a 50-100 point gain. I'd estimate in the 70-80 point range without knowing anything at all about your profile. If you can provide some more profile data we can give you a more educated estimate. The gain will be significant though without question.

BrutalBodyShots.......Here is some info that will help......You guys on here amaze me on how accurate and informative you guys are....My file has 2 charge offs that are falling off in July...I started rebuild 2.6 yrs ago..scores were in low 500's.. only had these 2 baddies reporting then until Cap 1 gave me a 300, unsecured QS....today I have 23 OPEN ACCTS...14 CC-7 retail-2 installment which are 1) unsecured personal loan 2) 32K auto loan. I have 1 unsecured personal loan, closed, as I paid as agreed Total credit 73k not counting auto, total debt 12k... AAOA=11 MOS- .............EQ 649...TU 679....EX651...All accounts are 100% on time. These numbers are without the 15k CLOC or 2900 CC just recieved from NFCU....GOAL by year end is to be 750 or better across the board..... I am learning every day from this site..you guys are something else...I am hoping the scores will increase nicely....I have a decent looking file, UTL a bit higher than I would like and am paying it down..by july I will have 0 debt..

RobertEG · ‎05-22-2017

Also be aware that exclusion of charged-off accounts come in many different flavors, with differing scoring implications beyond the charge-off itself.

If the debt remains unpaid when the account reaches its exclusion date of 7'ish years from DOFD, the CRA will normally delete the entire account, since the unpaid status remains an adverse item of information with its own exclusion requirement. That has other scoring implications, such as removal of the account from AAoA, and if a revolving account still showing a balance, removal of the account from effect on % util scoring.

Anonymous · ‎05-22-2017

That all sounds complicated...what exactly does it mean.....I am not the sharpest knife at times

Anonymous · ‎05-22-2017

meatman1,

You are in a pretty good place and IMO will have little problem reaching 750 scores across the board by the end of the year. If you don't app at all and just let your accounts age, your AAoA will be at 1.5 years by the end of the year which isn't terrible. What you have going for you are a lot of accounts (thick file) and an open installment loan as part of your credit mix. Your overall utilization is around 16%-17% right now. Figure out on paper what you can do to pay that down to 8% ASAP and you'll see a score increase from the utilization drop. I know you said you'll be able to pay it all off this summer which is great. Just remember to allow just ONE small balance to report on ONE major credit card each month for maximum scoring. Based on the data you provided, I think the removal of those 2 baddies without the presence of any other negatives will yield you somewhere around 80 points on your profile. That combined with the utilization improvement, AAoA increase and possibly inquiries becoming unscoreable (not sure how many you have) I think will constitute 100 points, which puts you at your goal.

You are on the right path. Remove final 2 baddies. Pay down/off utilization. Let your accounts age. I think you'll hit 750 by year end.

Anonymous · ‎05-22-2017

@Anonymous wrote:
meatman1,

You are in a pretty good place and IMO will have little problem reaching 750 scores across the board by the end of the year. If you don't app at all and just let your accounts age, your AAoA will be at 1.5 years by the end of the year which isn't terrible. What you have going for you are a lot of accounts (thick file) and an open installment loan as part of your credit mix. Your overall utilization is around 16%-17% right now. Figure out on paper what you can do to pay that down to 8% ASAP and you'll see a score increase from the utilization drop. I know you said you'll be able to pay it all off this summer which is great. Just remember to allow just ONE small balance to report on ONE major credit card each month for maximum scoring. Based on the data you provided, I think the removal of those 2 baddies without the presence of any other negatives will yield you somewhere around 80 points on your profile. That combined with the utilization improvement, AAoA increase and possibly inquiries becoming unscoreable (not sure how many you have) I think will constitute 100 points, which puts you at your goal.

You are on the right path. Remove final 2 baddies. Pay down/off utilization. Let your accounts age. I think you'll hit 750 by year end.

I was wanting to refinance my truck loan thru NFCU...would it be best if I hold off till end of year and let everything age? Thanks for your input BrutalBodyShots.

Anonymous · ‎05-23-2017

Love to hear what BBS says. In the meantime, I think that the "age" thing may not matter quite as much. You will be derog-free by early June. Keep paying down your debt -- sounds like you could get that paid down fairly soon too. Right there that may get you everything you need. Why not wait and see?

In the meantime, I suggest that your CC paydown strategy be as follows (in the following order)

(1) Make sure all cards are paid to < 29 % individual utilization (each credit limit considered alone)

(2) Pay all cards down to zero that have a fairly low balance (e.g. like a card with a $112 balance, say). Here you are trying to create as many $0 balances as possible. FICO likes this too.

(3) Finally you will have one card with a positive balance. Keep paying that down to a small amount, like $20. Then keep all cards at $0 except that one, but always pay whatever the statement says in full after it prints.

Anonymous · ‎05-23-2017

@Anonymous wrote:
Love to hear what BBS says. In the meantime, I think that the "age" thing may not matter quite as much. You will be derog-free by early June. Keep paying down your debt -- sounds like you could get that paid down fairly soon too. Right there that may get you everything you need. Why not wait and see?

In the meantime, I suggest that your CC paydown strategy be as follows (in the following order)

      (1) Make sure all cards are paid to < 29 % individual utilization (each credit limit considered alone)

      (2) Pay all cards down to zero that have a fairly low balance (e.g. like a card with a $112 balance, say). Here you are trying to create as many $0 balances as possible. FICO likes this too.

      (3) Finally you will have one card with a positive balance. Keep paying that down to a small amount, like $20. Then keep all cards at $0 except that one, but always pay whatever the statement says in full after it prints.

Thanks CreditGuyInDixie....You guys are awesome. I am learning alot. Hell, I keep this up I will be in the 800's.......OH YEAH..