How much time is needed to heal damaged credit?

[Anonymous]

Fair Isaac tells us that time heals all wounds with a damaged credit file. In 2010 my FICO went down to 598 with a job loss, failed business, etc., but no bankruptcy. Since then I have lived a cash-only life but my mortgage has been paid on time - never a late payment. My FICO score has not budged even one point in two years and less than 10 points in 4 years. Just how much time is needed for time to heal this wound and start seeing some upward motion in the score?

[Sneakytiki]

My scores have already gone up in just a few months from getting everything current and paying off collections etc. My largest score increase so far was due to two secured credit cards through USAA.

Some people on here have had huge score increases in 1-2 years but I think it takes until that last negative falls off before it's fully repaired. That's 2017 for me and my charge offs (4) and collections (2) without a goodwill removal.

Do you have any secured cards, credit cards or revolving credit? That will definitely help out with your scores.

What does your current credit profile look like with open and closed accounts? It might help others with giving you advice on rebuilding your credit.

[myjourney]

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@Anonymous wrote:

Fair Isaac tells us that time heals all wounds with a damaged credit file. In 2010 my FICO went down to 598 with a job loss, failed business, etc., but no bankruptcy. Since then I have lived a cash-only life but my mortgage has been paid on time - never a late payment. My FICO score has not budged even one point in two years and less than 10 points in 4 years. Just how much time is needed for time to heal this wound and start seeing some upward motion in the score?

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Welcome to the forum

Your case of no movement is probably due to credit mix 

Someone with a installment loan, CC's and a mortgage will see movement in scores in time 

Let me guess and kick me if i'm wrong ....ok here goes you have no car note and no CC's? 

[myjourney]

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@Sneakytiki wrote:
My scores have already gone up in just a few months from everything current and paying off collections etc. My largest score increase so far was due to two secured credit cards through USAA.

Some people on here have had huge score increases in 1-2 years but I think it takes until that last negative falls off before it's fully repaired. That's 2017 for me and my charge offs (4) and collections (2) without a goodwill removal.

Do you have any secured cards, credit cards or revolving credit? That will definitely help out with your scores.

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You beat me good answer ...

[Sneakytiki]

I'm still new to this and learning but that did help me the most. I added a second question and fixed a typo to my first post. It was the best advice from this site so far for me.

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@myjourney wrote:

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@Sneakytiki wrote:
My scores have already gone up in just a few months from everything current and paying off collections etc. My largest score increase so far was due to two secured credit cards through USAA.

Some people on here have had huge score increases in 1-2 years but I think it takes until that last negative falls off before it's fully repaired. That's 2017 for me and my charge offs (4) and collections (2) without a goodwill removal.

Do you have any secured cards, credit cards or revolving credit? That will definitely help out with your scores.

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You beat me good answer ...

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[Anonymous]

Myjourney - All the active credit I have is a mortgage - no car notes, no credit cards, and 3 Junk Debt Buyers so you are right. I really don't want to go applying for credit because I know the CRA's will be notifying the JDB's and that would create lawsuits which I really don't want. I am "Judgment proof" - meaning all assets I have are valued below the Bankruptcy threshhold and therefore are not subject to levy and my income is 100% exempt from creditors (pensions and Social Security). I was just curious as to why I have had no movement in my credit score for such a long time when all the common wisdom says that these baddies have less and less impact over time.

[myjourney]

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@Anonymous wrote:

Myjourney - All the active credit I have is a mortgage - no car notes, no credit cards, and 3 Junk Debt Buyers so you are right. I really don't want to go applying for credit because I know the CRA's will be notifying the JDB's and that would create lawsuits which I really don't want. I am "Judgment proof" - meaning all assets I have are valued below the Bankruptcy threshhold and therefore are not subject to levy and my income is 100% exempt from creditors (pensions and Social Security). I was just curious as to why I have had no movement in my credit score for such a long time when all the common wisdom says that these baddies have less and less impact over time.

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Ok here's your options

1) Get a secured card which will enhance your mix of credit and I'll give you one that will not require a HP on your credit but does reports to all 3 CB's

2) pull your free annual credit reports and I'll supply you with a link for that as well 

3) after getting your CR's visit our rebuilding forum and post any baddies and let's see can we help get rid of any on CR's....since your 100% exempt this will help increase scores along with a new tradline reporting would give you a kick start in scores

Secured card link ..............https://www.sdfcu.org/emv-creditcards

Free credit reports (3)......https://www.annualcreditreport.com/requestReport/landingPage.action;jsessionid=AtHZhA3If7Bqo9NxM7q44QQVbqg6rZLwkYCBGJ8K

myFico rebuilding forum..............http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/bd-p/rebuildingcredit

[CreditDunce]

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@Anonymous wrote:

Myjourney - All the active credit I have is a mortgage - no car notes, no credit cards, and 3 Junk Debt Buyers so you are right. I really don't want to go applying for credit because I know the CRA's will be notifying the JDB's and that would create lawsuits which I really don't want. I am "Judgment proof" - meaning all assets I have are valued below the Bankruptcy threshhold and therefore are not subject to levy and my income is 100% exempt from creditors (pensions and Social Security). I was just curious as to why I have had no movement in my credit score for such a long time when all the common wisdom says that these baddies have less and less impact over time.

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If you don't need credit, then you can completely ignore your credit score.  If you are concened about being sued, check the statue of limitations in your state.  Was the SOL has passed, they can sue you and you will have to show up to contest.  But it will be thrown out of court.

To answer your other question, non-bk baddies in general will remain on your credit report for about 7 years.  By following the good advice other posters have posted, your score can slowly be rebuilt.  However, until all of baddies fall off or are removed, your score will suffer.   If you haven't already, pull your free annual credit reports.   Check to make sure the collection agencies are reporting the correct date of default.  That is the important date as far as how long it will remain on your CR. 

[Anonymous]

I have pulled all 3 credit reports and +/- 2 months the dates of delinquency are accurate. AZ has a 3 or 6 year SOL (the law is not clear - it was changed in 2011 but I may be grandfathered under the old one because of the date of my Cause of Action being before the change). So I either have 2 years left for SOL to expire or it expired last year. Since I am Judgment Proof and do not need credit (I have 6 months expenses in various bank accounts) I can wait. As I said, my question is more academic than a problem for me but I thought others may find this issue interesting and informative. The only real issue I have with a credit score is how it affects the cost of my homeowners and auto insurances. CK gives both scores -  my auto insurance score is Poor and my homeowners insurance score is Excellent. You figure it out.

[CreditDunce]

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@Anonymous wrote:

I have pulled all 3 credit reports and +/- 2 months the dates of delinquency are accurate. AZ has a 3 or 6 year SOL (the law is not clear - it was changed in 2011 but I may be grandfathered under the old one because of the date of my Cause of Action being before the change). So I either have 2 years left for SOL to expire or it expired last year. Since I am Judgment Proof and do not need credit (I have 6 months expenses in various bank accounts) I can wait. As I said, my question is more academic than a problem for me but I thought others may find this issue interesting and informative. The only real issue I have with a credit score is how it affects the cost of my homeowners and auto insurances. CK gives both scores -  my auto insurance score is Poor and my homeowners insurance score is Excellent. You figure it out.

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I wouldn't trust the CK auto/home insurance scores too much.  They are fun to look at, but that is about it.   I think the CK home insurance score is greatly effected by age of your credit report.  The CK Auto is more focused on baddies.

I think the more important CR for insurance is what is on your C.L.U.E CR from LexisNexis.  LexisNexis pulls your standard credit report, but they add more stuff to it.  You can request it (and a couple of other CR's) from LexisNexis.  I have it on my to do list after my next app spree.   I am just curious as to what is on it and who uses it.  

If you haven't changed insurance companies in the last couple of years, I would certainly do some rate shopping.   In addition to your credit score, insurance companies use a score based on how likely you are to change insurance companies.  The more likely you are to change, the lower your insurance cost.