FICO Causes and Effects (What Happened, and How Did it Affect Your FICO?)

[Anonymous]

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subprime wrote:

The healthcare provider was supposed to "discount" my bill due to them being in the insurance company's prefered provider network.  This bounced around for a few months and then it was sent to collection.

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I'd get on the phone to the insurance company. Gather up as much detail as you can. Date of service, name of the insured, name of the patient, DOB of both, SSN of the insured.

Start off the call like this.

"Hi, umm, ah, I'm hoping you can help me with something. I'm, ah, not sure who to talk to, or what, and it's about a claim."

If you appear lost and unsure, they will often step up and start asking you questions (based upon how they enter data into their system) and take control of the conversation. This can put them on the defensive thinking they need to give you more information in an to answer your unfocused questions.

Ask them about the claim, the date submitted, amount submitted, amount paid by insurance, amount written off, amount owed by you. Act confused.

"Umm, well, how come they're billing me? Or can they?"

If you can get the insurance rep fired up, they will often volunteer to call the provider and "straighten them out". Providers who bill in violation of signed contracts don't make insurance companies very happy.

[Anonymous]

Hello;

I wanted to ask a question about my credit. I have for the last six months tried to fix my credit when I started I have 3 account in collection 2 public record and 2 chargeoffs and my credit score is 545. I have paid off 2 of the accounts that where in collection and both public record and settle on one of the charge offs. And my credit score is still 545. the other charge off  I have gotten intouch with the company and they gave me a settlement, at first it was $2910, now its $2130. I have started sending payment of the settlement but it want get reported to the CB until it is paid off. If is scheduled to fall of of my file in February 2008. Am I doing the right thing in paying of the negative items? What is the correct action I can take to improve my credit score. I want to buy a $30,000 vehicle in March of 2008. What is my options to inprove my score? or am I dreaming?

[Anonymous]

Hello;

I wanted to ask a question about my credit. I have for the last six months tried to fix my credit when I started I have 3 account in collection 2 public record and 2 chargeoffs and my credit score is 545. I have paid off 2 of the accounts that where in collection and both public record and settle on one of the charge offs. And my credit score is still 545. the other charge off  I have gotten intouch with the company and they gave me a settlement, at first it was $2910, now its $2130. I have started sending payment of the settlement but it want get reported to the CB until it is paid off. If is scheduled to fall of of my file in February 2008. Am I doing the right thing in paying of the negative items? What is the correct action I can take to improve my credit score. I want to buy a $30,000 vehicle in March of 2008. What is my options to inprove my score? or am I dreaming?

[Permafrostrick]

While it is great you are getting things back in shape, I think the only way your FICO score will improve is by keeping all your active accounts in good standing and with the passive of time.

The fact these collections and charge-offs are nearly current, that is why your score is so low.

It ll take 2+ years of good standing on all active accounts and no new delinquencies etc. before your score will really start recovering.

I had issues in my past as well where a few years ago my FICO was around 580.  However, no delinquencies since and my score is now near 700.

The degree of neglect effect of these derogatory items on your report have on your FICO score decreases with time.  As stated many places here, they will not count toward your score at all after 7 years since the last action of it....regardless of the actual dollar amount still owned if any.

If you have no delinquencies between now and March 2008 as well as no new credit openings, balance percentage about the same or lower etc., your score will be slightly higher than it is now...and you likely can get an auto-loan...but be prepared to pay double-digit interest rate on the auto-loan...likely in the 12-15% range...as long as you have income level to also support the payments.

[Anonymous]

the balance on one card increased by 26 bucks and my fico decreased by 1.

this is some bs if i ever saw any

[Anonymous]

Hello all,

(warning - newbie alert)

Preparing for a mortgage refi, I check my CR and FICO score.  I had two dings, one a 30 day late and the other a fraudulent Citibank account opened and closed three years ago with an outstanding balance.  I thought that last had been dealt with at the time, but there it is.

So...I used the online dispute option with CSC and my score immediately fell from 736 to 683!  I presume the account became more "recently active" so it had a bigger impact.  Any other ideas why it would drop and drop that much?

I also disputed with Citibank.  Hopefully they will pull it and the whole thing will go away.  Will try a GW letter for the 30 day late.

Message Edited by DavidCarlson on 10-02-2007 02:36 PM

[BeatingtheSystem]

how long until 30 day past due drops off your CR?

[haulingthescoreup]

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BeatingtheSystem wrote:

how long until 30 day past due drops off your CR?

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You'll look at it for 7 years from the time that it happened, but the points damage is mostly, if not totally, gone after 2 years. (This info comes from me asking the same thing, several times.) If there's just one, probably no big deal, but if you have several and you are trying to borrow something, you may have to do some explaining if asked.

edit: I should have said that if there's only one, it's EVENTUALLY no big deal! It's a very big deal when it first hits--it frequently costs you 50 points, right then and there (it did me.) The damage starts to drop after 3 months, then 6, then 12, then 18, per the FICO simulator.

Message Edited by haulingthescoreup on 10-07-2007 02:50 PM

[Anonymous]

Who is making up these rules for FICO scores? In May my score went up 9 points because I used a Capital One card for a $37 purchase." Congratulations, one of your accounts showed an increase" was the message. Today I got a notice that my score went down 12 points because" An inactive account showed an increase" !!! The balance of $29 was for a yearly fee on the account. It wasn"t even due yet. I have never been late for a payment and 95% of the time pay off all balances every month. Does this make any sense?

[Anonymous]

Amen...the rules seem very arbitrary