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Established Contributor
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Registered: ‎09-13-2009

Re: From 800+ to Foreclosure - How Negatives Effect Your Score


Patiently waiting for my Discover FICO to update tomorrow... then about another week until Amex updates my EX.  Until then, my scores are climbing slowly for July 2015 Smiley Happy

 

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Re: From 800+ to Foreclosure - How Negatives Effect Your Score

Your scores are coming up quite nicely! Congratulations!! Smiley Happy
Year 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
April 2017: EX8: 730; EQ8: 735; TU8: 740; EQ04: 729 FICO 9 Scores about 50 points higher
In My Wallet: Discover $60.2K; Cap1 Venture $30.7K; Amex ED $38K; Amex Optima $12.5K; Cap1 Plat $8.4K; Barclay $7K; Citi TY Pref $13K; US Bank $4K; Dell $5K; Care Credit $6.5K. Total Revolving CL: $185.5K
My UTIL: Less than 1% - Only allow about $10 a month to report, on one account. .
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Re: From 800+ to Foreclosure - How Negatives Effect Your Score


EW800 wrote:
Your scores are coming up quite nicely! Congratulations!! Smiley Happy

Thanks!  I'm quite surprised that I was sitting across 630-640 (Feb. 2015) on all 3 scores and now am 670-680 (July 2015).  With only one account going negative, the scores have been quite generous, especially when that account balance hit $0! 

 

I think it is safe to assume that after a 60 day late, no more damage is done for any additional derogatory information added to that ONE account and will be weighed down much more until the balance hits $0.  This does NOT take into consideration credit cards since after 150 days, I assume an account will be sent to collections which would add a SECOND negative account, further dropping your score.  Concur?

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Posts: 16,633
Registered: ‎12-30-2011
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Re: From 800+ to Foreclosure - How Negatives Effect Your Score

[ Edited ]

JagerBombs89 wrote:

EW800 wrote:
Your scores are coming up quite nicely! Congratulations!! Smiley Happy

Thanks!  I'm quite surprised that I was sitting across 630-640 (Feb. 2015) on all 3 scores and now am 670-680 (July 2015).  With only one account going negative, the scores have been quite generous, especially when that account balance hit $0! 

 

I think it is safe to assume that after a 60 day late, no more damage is done for any additional derogatory information added to that ONE account and will be weighed down much more until the balance hits $0.  This does NOT take into consideration credit cards since after 150 days, I assume an account will be sent to collections which would add a SECOND negative account, further dropping your score.  Concur?


I'm not honestly, that's the same behavior I got on FICO 8 scores when I got a tax lien tacked on.  All my FICO 8's dropped to around my Beacon 5.0 and after a few months had separated markedly.  I might be able to get that out of the old SW data later today.

 

I don't think it's safe to state that a 60 day late is the maximum penalty in the algorithm, but there are patterns at least according to FICO 8 marketing literature where isolated incident (30/60/90-> onward is presumably isolated if it's on one tradeline), a 90+ day is counted more harshly on some models at least according to prior anecdotal evidence especially as we factor in time based effects: right now they might count the same, but in 5 years betcha the 90-150 would be worse than a 60 day as a simplistic example. 

 

Also for you, you got rebucketed probably as soon as the first 30 day late hit, that might also account for some dimishing returns in terms of damage as more lates got tacked on... similar to how multiple tax liens hurt less and less for every single one tacked one, same with collections, same with inquiries.

 

Not sure, just sort of stream of conciousnessing this one, don't think we have enough data though I found your score journey absolutely fascinating.

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 693, EX 2 719, EQ 8 732, TU 8 732, EX 8 728 (2/01/17)
Goal Score:    EQ 5 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Re: From 800+ to Foreclosure - How Negatives Effect Your Score

[ Edited ]

Thanks for the insight Revelate as I completely forgot about bucketing

 

So on a unrelated note, I have been debating taking out a student loan.  My final school year will be the 2015-2016 sessions as I should be a graduate this time next year.  Both the original mortgage and refinance mortgage (foreclosure) are being reported as closed, no open auto loan, and no open personal loans.  Here are a couple background points I could use some thoughts on:

 

1)  I don't need the loan for the money.  It would be a federal subsudized loan so my understanding is it would be 4.29% interest and I wouldn't have to start making payments until 6 months after graduation.  In the mean time, the government pays all the interest until repayment starts.  Have I interpretted this correctly?

 

2)  Since I don't need the money for the loan, I am thinking of doing it just to have an open installment account on my credit report.

  • I have two closed personal loans that should will drop in 2019 and 2020. 
  • There are four closed auto loans that will drop in 2020, 2021, 2022, and 2024. 
  • There are two closed mortgages that will drop in 2021 and 2025

3)  The maximum amount of the loan would be $5,500 for the 2015-2016 school year.  Let's assume I take the maximum and we ignore the fees.  This means $2,750 would disburse for Fall of 2015 and $2,750 would disburse Spring of 2016.  How do these loans report on your credit?  Is it one loan for $5,500 or would it show as two separate loans for $2,750 each? 

 

4) Overall, I don't see myself needing a loan anytime soon, besides the potential student loan.  I am not planning on buying another car or taking out any kind of loan for for at least the next 3 years (times might change by then).  If concern #3 reports as two separate loans, I would be apt to cut the amount in half so only one loan would report.  Keep in mind, I still have 5 credit cards that are open/active that have perfect payment history ranging from 1-7 years old.  AAoA is currently 5 years old.  My main concern is #2: considering I just had the foreclosure and the drop dates listed above, would you take out the student loan to have an open installment account and  compensate for account dropping primarily between 2019-2022? 

Moderator
Posts: 16,633
Registered: ‎12-30-2011

Re: From 800+ to Foreclosure - How Negatives Effect Your Score

[ Edited ]

JagerBombs89 wrote:

Thanks for the insight Revelate as I completely forgot about bucketing

 

So on a unrelated note, I have been debating taking out a student loan.  My final school year will be the 2015-2016 sessions as I should be a graduate this time next year.  Both the original mortgage and refinance mortgage (foreclosure) are being reported as closed, no open auto loan, and no open personal loans.  Here are a couple background points I could use some thoughts on:

 

1)  I don't need the loan for the money.  It would be a federal subsudized loan so my understanding is it would be 4.29% interest and I wouldn't have to start making payments until 6 months after graduation.  In the mean time, the government pays all the interest until repayment starts.  Have I interpretted this correctly?

 

2)  Since I don't need the money for the loan, I am thinking of doing it just to have an open installment account on my credit report.

  • I have two closed personal loans that should will drop in 2019 and 2020. 
  • There are four closed auto loans that will drop in 2020, 2021, 2022, and 2024. 
  • There are two closed mortgages that will drop in 2021 and 2025

3)  The maximum amount of the loan would be $5,500 for the 2015-2016 school year.  Let's assume I take the maximum and we ignore the fees.  This means $2,750 would disburse for Fall of 2015 and $2,750 would disburse Spring of 2016.  How do these loans report on your credit?  Is it one loan for $5,500 or would it show as two separate loans for $2,750 each? 

 

4) Overall, I don't see myself needing a loan anytime soon, besides the potential student loan.  I am not planning on buying another car or taking out any kind of loan for for at least the next 3 years (times might change by then).  If concern #3 reports as two separate loans, I would be apt to cut the amount in half so only one loan would report.  Keep in mind, I still have 5 credit cards that are open/active that have perfect payment history ranging from 1-7 years old.  AAoA is currently 5 years old.  My main concern is #2: considering I just had the foreclosure and the drop dates listed above, would you take out the student loan to have an open installment account and  compensate for account dropping primarily between 2019-2022? 


If you're just doing it for FICO purposes, why not simply open up a $500 secured loan with either Alliant or SDFCU, then after it reports make a regular payment in the amount of ~$460 and then sit on it for a few years?

 

FICO 8 doesn't look at dollar value for this as near as I can tell, just some utilization metrics.  Solve a reindeer game as cheaply as possible; now if you're financing a SL because you're getting a better return on your money elsewhere, by all means go for it, but I wouldn't do it just for your report.

 

Thread that Jamie and I have been working on:

 

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Installment-tradeline-utilization-thread/...

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 693, EX 2 719, EQ 8 732, TU 8 732, EX 8 728 (2/01/17)
Goal Score:    EQ 5 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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Posts: 822
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Re: From 800+ to Foreclosure - How Negatives Effect Your Score

[ Edited ]

Revelate wrote:

JagerBombs89 wrote:

Thanks for the insight Revelate as I completely forgot about bucketing

 

So on a unrelated note, I have been debating taking out a student loan.  My final school year will be the 2015-2016 sessions as I should be a graduate this time next year.  Both the original mortgage and refinance mortgage (foreclosure) are being reported as closed, no open auto loan, and no open personal loans.  Here are a couple background points I could use some thoughts on:

 

1)  I don't need the loan for the money.  It would be a federal subsudized loan so my understanding is it would be 4.29% interest and I wouldn't have to start making payments until 6 months after graduation.  In the mean time, the government pays all the interest until repayment starts.  Have I interpretted this correctly?

 

2)  Since I don't need the money for the loan, I am thinking of doing it just to have an open installment account on my credit report.

  • I have two closed personal loans that should will drop in 2019 and 2020. 
  • There are four closed auto loans that will drop in 2020, 2021, 2022, and 2024. 
  • There are two closed mortgages that will drop in 2021 and 2025

3)  The maximum amount of the loan would be $5,500 for the 2015-2016 school year.  Let's assume I take the maximum and we ignore the fees.  This means $2,750 would disburse for Fall of 2015 and $2,750 would disburse Spring of 2016.  How do these loans report on your credit?  Is it one loan for $5,500 or would it show as two separate loans for $2,750 each? 

 

4) Overall, I don't see myself needing a loan anytime soon, besides the potential student loan.  I am not planning on buying another car or taking out any kind of loan for for at least the next 3 years (times might change by then).  If concern #3 reports as two separate loans, I would be apt to cut the amount in half so only one loan would report.  Keep in mind, I still have 5 credit cards that are open/active that have perfect payment history ranging from 1-7 years old.  AAoA is currently 5 years old.  My main concern is #2: considering I just had the foreclosure and the drop dates listed above, would you take out the student loan to have an open installment account and  compensate for account dropping primarily between 2019-2022? 


If you're just doing it for FICO purposes, why not simply open up a $500 secured loan with either Alliant or SDFCU, then after it reports make a regular payment in the amount of ~$460 and then sit on it for a few years?

 

FICO 8 doesn't look at dollar value for this as near as I can tell, just some utilization metrics.  Solve a reindeer game as cheaply as possible; now if you're financing a SL because you're getting a better return on your money elsewhere, by all means go for it, but I wouldn't do it just for your report.

 

Thread that Jamie and I have been working on:

 

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Installment-tradeline-utilization-thread/...


Thanks for the thread, I have been watching it out of curiousity. 

 

I am not planning on investing the money really, but I figured if I got the student loan, I would have almost 18 months of no payments, and no interest.  However, the thought of a secured loan never crossed my mind.  How would that work exactly?  Is the minimum repayment like 2%, which is why I would make a $460 payment?  Is that how I would extend my next payment years out while paying little to no interest at all? 

 

EDIT: For instance, I noticed Discover has a personal loan that can be up to 84 months long.  Maybe they would let me take a $2,000 loan for 84 months and I could just make a $1,900 payment initially?  Then pay it off in 5 years?  something like that?

Valued Contributor
Posts: 4,493
Registered: ‎11-28-2014
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Re: From 800+ to Foreclosure - How Negatives Effect Your Score

You're scores are starting to climb back!  Sweet & congrats!  Smiley Very Happy  I think you'll see 700 before long.  Smiley Wink


FICOS: EQ-812 TU-811 EX-818 Goal - 840-850 Across The Board
Total Credit Lines - 506K Gardening....
"I am the master of my fate and the captain of my destiny" Nelson Mandela
Valued Contributor
Posts: 4,493
Registered: ‎11-28-2014
0

Re: From 800+ to Foreclosure - How Negatives Effect Your Score

Hmmm.  They didn't hit yet?  I think they will take it down?   I thought that was much sooner?  Are you doing anything to offset the negatives right now?


JagerBombs89 wrote:

EW800 wrote:
Your scores are coming up quite nicely! Congratulations!! Smiley Happy

Thanks!  I'm quite surprised that I was sitting across 630-640 (Feb. 2015) on all 3 scores and now am 670-680 (July 2015).  With only one account going negative, the scores have been quite generous, especially when that account balance hit $0! 

 

I think it is safe to assume that after a 60 day late, no more damage is done for any additional derogatory information added to that ONE account and will be weighed down much more until the balance hits $0.  This does NOT take into consideration credit cards since after 150 days, I assume an account will be sent to collections which would add a SECOND negative account, further dropping your score.  Concur?


 


FICOS: EQ-812 TU-811 EX-818 Goal - 840-850 Across The Board
Total Credit Lines - 506K Gardening....
"I am the master of my fate and the captain of my destiny" Nelson Mandela
Moderator
Posts: 16,633
Registered: ‎12-30-2011
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Re: From 800+ to Foreclosure - How Negatives Effect Your Score

[ Edited ]

JagerBombs89 wrote:

Thanks for the thread, I have been watching it out of curiousity. 

 

I am not planning on investing the money really, but I figured if I got the student loan, I would have almost 18 months of no payments, and no interest.  However, the thought of a secured loan never crossed my mind.  How would that work exactly?  Is the minimum repayment like 2%, which is why I would make a $460 payment?  Is that how I would extend my next payment years out while paying little to no interest at all? 

 

EDIT: For instance, I noticed Discover has a personal loan that can be up to 84 months long.  Maybe they would let me take a $2,000 loan for 84 months and I could just make a $1,900 payment initially?  Then pay it off in 5 years?  something like that?


Depends how Discover does it; for example Alliant and it appears you can do this no problem, SDFCU we'll have confirmation within 2ish months that it can be done, they allow some amount of prepayment but not sure if it handles years in advance.  USAA apparently caps it one year in advance, and DCU caps it 3 months in advance (and will send you a nastygram if you pay ahead of that, and then reset your date).

 

It's lender dependant as a result, but I'm sort of looking at Discover now: $0 origination fee is a pretty nice feature honestly for an unsecured loan and 84 months is pure goodness compared to secured loans which typically cap at 5 years (think DCU is at 10 but that sucks for the abovementioned reason when we're talking reindeer games).  I think Alliant is $0 too and know that works, but I wouldn't mind having a Discover tradeline on my report if I don't go and apply for the IT.  Might be worth a try in my case, I have virtually no use for my report after the mortgage closes and I get 1 or at most 3 revolving accounts out of the way... if you give it a shot, let me know Smiley Happy

 

My mortgage reporting may wreck this for me for years anyway, $250K mortgage > any other loan I could get if it counts 1:1 (65K secured or unsecured loan to make an appreciable difference to get it under 80%, sigh)  It might not being a mortgage as every interface I've ever seen counts them seperately, but that means butkus for the algorithm.

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 693, EX 2 719, EQ 8 732, TU 8 732, EX 8 728 (2/01/17)
Goal Score:    EQ 5 750, EX 2 750, EQ 8 800, TU 8 Blah, EX 8 800 (01/01/18)


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