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I think im losing my mind with what just happened.

New Contributor

I think im losing my mind with what just happened.

Two things have hit me at once. Ive been trying to repair all of credit and I cant understand what just happend to my Fico.

 

First thing.

 

I settled an account with Chase. The account stopped reporting back in mid 2015. The agreement that I have in a letter from them was settled for less and balance reported as zero.

 

Right now I just saw on my experian that they reported september 2015 all the way up to February 2017 as being current and a charge off on march 2017. This HURTS.

 

Also, they are reporting a balance. they subtracted my settlement and reported a balance of $4807. the other two transunion and equifax have not been updated yet.

 

If the agreement was to report a balance of zero then shouldnt the 4807 be a zero? also is it normal to report a fresh charge off after bringing all of the other months up to this point as current?

 

Im very confused...

 

Second issue.

 

I have been sending letters of goodwill to bank of america. They finally updated my report but its horrible.. the BOA card was on a payment plan. I paid in full in 2014. The very last payment went into a charge off because the last payment was not the same as the monthly payments, it was a final payoff amount. I have been trying to get this charge off removed as good will.  Now I see that they have reported as current all the way up until February 2017 and marked a charge off on March of 2017.

 

this is only for experian.

 

im at a loss. I was crossing a 700 Fico 8 and now im down to a 650 :/ so much for even thinking about a refinance.

 

definately hard to motivate after this

6 REPLIES
New Contributor

Re: I think im losing my mind with what just happened.

Nevermind...

 

I think I figured out what happened.

 

apparently when you do a settlement it can happen in two phases. The first is to report the payment which is what they did but had to open the account to apply it.

 

Then the credit department accepts the settlement and applies the agreement by bringing it down to zero. this is the part that has not happened yet.

 

Apparently this can take 2 to 3 months to cycle through.. so in the meantime my score is going to be squashed

Super Contributor

Re: I think im losing my mind with what just happened.


scenaria wrote:

Two things have hit me at once. Ive been trying to repair all of credit and I cant understand what just happend to my Fico.

 

First thing.

 

I settled an account with Chase. The account stopped reporting back in mid 2015. The agreement that I have in a letter from them was settled for less and balance reported as zero.

 

Right now I just saw on my experian that they reported september 2015 all the way up to February 2017 as being current and a charge off on march 2017. This HURTS.

 

Also, they are reporting a balance. they subtracted my settlement and reported a balance of $4807. the other two transunion and equifax have not been updated yet.

 

If the agreement was to report a balance of zero then shouldnt the 4807 be a zero? also is it normal to report a fresh charge off after bringing all of the other months up to this point as current?

 

Im very confused...

 

Second issue.

 

I have been sending letters of goodwill to bank of america. They finally updated my report but its horrible.. the BOA card was on a payment plan. I paid in full in 2014. The very last payment went into a charge off because the last payment was not the same as the monthly payments, it was a final payoff amount. I have been trying to get this charge off removed as good will.  Now I see that they have reported as current all the way up until February 2017 and marked a charge off on March of 2017.

 

this is only for experian.

 

im at a loss. I was crossing a 700 Fico 8 and now im down to a 650 :/ so much for even thinking about a refinance.

 

definately hard to motivate after this


If you don't repay a bank on time you have to assume it will tank your credit scores.

FICO8 EQ 725 TU 750 EX 717 Total revolving credit 443500
Established Contributor

Re: I think im losing my mind with what just happened.


scenaria wrote:

Nevermind...

 

I think I figured out what happened.

 

apparently when you do a settlement it can happen in two phases. The first is to report the payment which is what they did but had to open the account to apply it.

 

Then the credit department accepts the settlement and applies the agreement by bringing it down to zero. this is the part that has not happened yet.

 

Apparently this can take 2 to 3 months to cycle through.. so in the meantime my score is going to be squashed


 A closed tradeline scored from the date of last activity.... So if you had a debt sitting out there for three years without paying it, and then decided to pay if off today, that tradeline would be refreshed to today's date, meaning the 7 year timers starts over.

 

 A manual review would probably figure that out, but automated underwriting will ding you pretty heavily until they age again.

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Senior Contributor

Re: I think im losing my mind with what just happened.


Dalmus wrote:

scenaria wrote:

Nevermind...

 

I think I figured out what happened.

 

apparently when you do a settlement it can happen in two phases. The first is to report the payment which is what they did but had to open the account to apply it.

 

Then the credit department accepts the settlement and applies the agreement by bringing it down to zero. this is the part that has not happened yet.

 

Apparently this can take 2 to 3 months to cycle through.. so in the meantime my score is going to be squashed


 A closed tradeline scored from the date of last activity.... So if you had a debt sitting out there for three years without paying it, and then decided to pay if off today, that tradeline would be refreshed to today's date, meaning the 7 year timers starts over.

 

 A manual review would probably figure that out, but automated underwriting will ding you pretty heavily until they age again.


The "7 year timers" for credit reporting never ever resets. The information you gave, is wrong.

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Valued Contributor

Re: I think im losing my mind with what just happened.

The more recent activity will hurt, however, it does not reset the dofd, so it will still fall off at the same time.

 

Being lucky that they didn't continue to report it for 2 years only affected your raw score. An unpaid collection/charge off, regardless of when the creditor gave up on reporting it/trying to collect, will always look worse than a paid one to anyone looking at your reports.

 

You did the right thing, and while it hurts more right now, it will fall off in the same amount of time and eventually be far enough in the rear view that it barely makes a difference in your score, unless it's the very last negative item to go, and let's say you are trying to get a mortgage or an auto loan - a paid collection that old will be dismissed, while an unpaid one would require action, or just result in an immediate denial or much higher interest rate.


EX08 659 EQ08 660 TU08 695 Starting: mid 300'sGoal: 700
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New Contributor

Re: I think im losing my mind with what just happened.

Yea I didnt really have any choice.

 

Im working with a lender on a refinance, and he said that it had to be at a zero balance no matter what.

 

I think I'll see a jump next month when they pull the balance to zero, right now its reporting as overdue because they opened the account to apply the $3k.