Understanding FICO® Scoring

[Skiffy]

Even after an account's charged off, there's still a delinquent balance owing. It is common to continue to get late payment reports after the fact of charge-off. Note that charging off is really only for accounting purposes; the bank no longer gets to count that amount on the asset portion of its balance sheet but instead has to expense it.

However, this doesn't change your relationship to that debt at all.

[dazednconfused]

Yes, that would be technically true if a balance was still owing.  However, if the balance is paid, then there is no balance owing and the account should read paid/closed.  Status should not read derog as it makes the reader assume that the account is currently derog when in fact it could have been paid out 2-4 years prior.  I have yet to figure out who places the derog status on the accounts, but I think it is the CRA's. 

[Quest76]

Hi Tuscani,

Just following up: 

In my email dated 7/6/07 @ 9:25am I explained how Fair Isaac added those recent dates of being 90 days late on the myFICO Experian report (whereas Experian directly does not show those recent dates).

In your email dated 7/6/07 @ 1:23pm you mentioned that Fair Isaac cannot add information, but that you were going to look into this.

Just checking to see if you've gotten any feedback about this?  Thanks Tuscani.

[Skiffy]

Based on information I got from Experian while in a lawsuit with a 3rd party, while the Metro2 format does cover "Paid, was a chargeoff," not even Experian's data is rich enough to cover this in the consumer reports they issue. I can only hope it's a planned upgrade.

[dazednconfused]

Wow, that bites.  I hope that is in the planned upgrade.  I mean, for cyring out loud, you pay the charge off, zero balance the account and it's still reported as derog.  So much for accurate reporting....

[Noah_Bodie]

---

dazednconfused wrote:

you pay the charge off, zero balance the account and it's still reported as derog.  So much for accurate reporting....

---

It is accurate. A paid CO is a derog.

[dazednconfused]

Apparently.  But it sure doesn't seem right to me.  How are you supposed to get ahead when you do the right thing?  BTW Noah, do you know how long it will stay on your report?  From the date of the CO or the date that you paid the CO?  I do hope it is from date of charge off or first delinquency...

[Noah_Bodie]

---

dazednconfused wrote:

Apparently.  But it sure doesn't seem right to me.  How are you supposed to get ahead when you do the right thing?  BTW Noah, do you know how long it will stay on your report?  From the date of the CO or the date that you paid the CO?  I do hope it is from date of charge off or first delinquency...

---

This is something I often rant about, and I'll take the opportunity to do so again.

Never pay a collection or chargeoff, unless:

a) You have to (served with a summons and complaint or you think they will, Prime mortgage lender won't give you a home loan until you PIF the CO or COLL, et al.)

b) You get them to agree to PFD

They prey on a person's lack of knowledge. You, me, and many others have been stung by this. Talked to too many people who've seen paid COs and paid COLLs drop from their CRs and they've seen big score improvements. It is complete B.S. to believe a paid CO or COLL does you any good. It is complete B.S. to believe that simply paying a CO or COLL does you any good.

Paying a CO or COLL does not change the CRTP. Still drops 7 years, give or take 180 days, from DOFD.

If it is now paid, try a GW letter to the OC.

If it was settled for less than the full amount, then methinks one has grounds to pursue a PFD still.

[dazednconfused]

Yeah, unfortunately, I didn't know what I know now and stumbled onto this site and others after I refi'd my mortgage in May.  Had to pay some of them off, otherwise no go on the loan.  Sucks big time for me...............

[Calamity]

Lates always help your scores!