I was curious if some of the FICO-gurus on this forum have an answer to my question:
I filed for BK CH7 in 09/2010 but all my derogatory TLs on my credit-reports will reach their 7 1/2 year DOFD-mark within the next 12 months. My current EQ-score is 626 and once I click on the "Best Action"-button, I'm told that when I'm going to pay off between 90-100% of my revolving debt over the next 24 months, my score would be between 736-766. Not that I would complain about such a score, but I always wanted to know the following:
Is the simulator actually able to take the dropping of my derogatory accounts over the next 12 months into consideration? If not, could my potential "score-gain" be even bigger?
I do know that the aging of positive accounts and probably the aging of derogatory accounts is considered - but does that apply to the complete removal of derogatory accounts due to their DOFD, too? Any ideas?
I have only a little experience with the simulator via myFICO but I'm not much of a fan. I do know if you choose the 24-month option it assumes that all of your accounts are 24 months older and that the debt is paid down, and that accounts for a higher score guesstimate over choosing a 1-month paydown, for example. But I think it assumes that all of your TLs will continue to report (even the baddies) 24 months out.
Don't put too much stock in the simulators. If they were true I would have a score around 800 by now, but i dont.