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Potential Problem

Frequent Contributor

Potential Problem

So i didn't think of this before but I had a really old Charge Off that i recently paid that was reporting a status of "Collection" each month to the CRA's.  Is that the same as reporting 60 day, 90 day, etc?  It had been charged off since 2006 and was scheduled to age off this year before I decided to good faith settle it to help my score. 


5 REPLIES
Established Member

Re: Potential Problem

Yea bad deal.   Just paid off a credit card thats been reporting since 2008.  Shows as paid but as a recent collection.

 



Starting Score: 515EQ/556TU
Current Score: 632EQ/632TU
Goal Score: 750


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Frequent Contributor

Re: Potential Problem

not so sure you answered my question.

 

More specifically, if a lender is looking at my CR, are they gonna treat the "collection" notation for a March 2012 the same a "30 day late"?

 

I haven't had a true late in like 5 years but this is an actual notation by month so i am curious. 


Moderator Emeritus

Re: Potential Problem

Whenever you have an acct go bad, you'll see 30 days, 60, 90, and eventually it will CO. Even as a charge-off, it can still update monthly with added lates, like 120+ days or a CO mention. It can do so up to the point it is paid or sold. Per FICO it can be a drain. FICO looks at the most recent delinquency, which is the CO, and looks how recent the last update was as a CO. So if it updates monthly, then FICO would view it as recent if the update was recent. The prev. lates really don't matter per FICO. They can go away and you wouldn't see any score change since the most recent late matters since it's the most severe. 

 

Send a GW, or keep sending GWs if paid. Keep the age of the TL in mind too.

Frequent Contributor

Re: Potential Problem

ya i don'ot know that i will GW it considering the age of the TL, but i'm more curious if a mortgate lender would look at it as a "recent late". 


Highlighted
Moderator Emeritus

Re: Potential Problem

Some will see past the recent updating and see that it defaulted years before that. Some won't. It's a YMMV thing....or at least whenever I see similar examples posted in Mortgage Loans.