dispute now shows 0 after .....

[Anonymous]

hi all,, i had a repo of a truck thru GMAC back in 05,, it was sold to Hilco and i came to a resolution of .25 cents on the dollar of a $15,850.00 debt,, after paying the almost 4 grand over a structured payment plan Hilco showed as paid in full,, but GMACs tradeline still appears witht  the 15K dept,, i disputed online to all 3 CRAs and as of today transunion shows a 0 balance,, in remarks it states "dispute reslvd-cust disagrees BUT it is at a 0 balance now instead of the $15,580.00  SO that being said,, how much will my score go up?  it is at 651 right now according to creditkarma.. any help is appreciated.  i am glad i found this place as there are very knowledgable people that actually care!   thanx all...  Vic

[Anonymous]

oh,, also how long does it take to reflect the 0 balance in my score,, and does it matter if only 1 CRA  shows 0 at this time as the other 2 are still doing the investigation..  how long will it take before i notice a change in my score?  thanx again guys and gals!

[RobertEG]

Payment of the debt wont affect FICO scoring.  FICO scores the derogs.Update tp $0 balance has two benefits.  It means the debt is paid, and thus you dont hav to worry about legal action.  It will also look better if a manual review is done of your CR.  But it wont improve FICO score.

[Anonymous]

Hmmm,, i thought by eliminating a $15000.00 dept it would reflect my dept ratio thus reflecting in a positive manner..  i also have a car loan that is almost paid off,, do you mean to tell me that wont make a difference either?

[Anonymous]

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@Anonymous wrote:

Hmmm,, i thought by eliminating a $15000.00 dept it would reflect my dept ratio thus reflecting in a positive manner..  i also have a car loan that is almost paid off,, do you mean to tell me that wont make a difference either?

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Yes you are correct is does but only when your trying to close on a house does that come into play.  You didn't have to cross it out though noone thinks it's a stupid thought.  It's not a factor in your fico scoring at all owing on an installment loan but it would effect your dept to income ratio if you were trying to attain a mortgage.

edit:  As is though you may have to explain it to an underwriter if you have a few other baddies as well.  That all depends though, each situation is different.

[Anonymous]

sorry i didnt realize i made the cross out word thingy,,  so the dept ratio only plays a role in mortgages ONLY?  i all reality i wouldve not payed the 4K to get rid of the debt since it was about to fall off soon anyhow and chanced a suit in court..  so it will absolutley not make a difference in my score?  then what will if eliminating shown debt wont?  something doesnt make sense to me,, i have been on other sites and have read different?  guess a few months will tell....  thanx

[Anonymous]

the only debt that helps when you pay it down is that on your credit cards. That's becuase it's lowers your utilization %. Paying back installment loans on time helps your history and paying off installment loans may be a factor in your auto enhanced fico.  I can't be quoted on that i know for a fact auto loans play a big roll but  i'm not 100% whether personal loans or other loans are factored in as well.

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@Anonymous wrote:

sorry i didnt realize i made the cross out word thingy,,  so the dept ratio only plays a role in mortgages ONLY?  i all reality i wouldve not payed the 4K to get rid of the debt since it was about to fall off soon anyhow and chanced a suit in court..  so it will absolutley not make a difference in my score?  then what will if eliminating shown debt wont?  something doesnt make sense to me,, i have been on other sites and have read different?  guess a few months will tell....  thanx

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You paid for the paid in full statement i believe personally.  It could have  stated settled.  They got the car but the car was worth far less than what you originally financed it for.  I dont know your dofd, the dates weren't mentioned as far as that goes but don't confuse reporting statute of limitations with debt collection statute of limitations because they are completely different.  While most states debt collection statutes of limitations are shorter than the 7 1/2 years of reporting, some are longer depending on what state you live in.   Just  a reference.

[llecs]

There are two percentages at play: DTI and utilization. DTI isn't a part of FICO scoring so that makes no difference here. Per FICO scoring, utilization is split between installment utilization (car+mortgage+SLs+loans+etc.) and CCs (revolving, charge to a partial extent, LOCs, etc.). Installment utilization is scored totally differently from revolving utilization. They are never combined. When comparing the two, revolving util trumps installment util anyday. Installment util is such a minor part of scoring that it really doesn't make a difference. And that's a good thing; I'd hate to get a brand new $300k mortgage and have a dumpy score up to the point it gets paid down. Assuming this is your only loan, and you have no others that would be factored into the math, going from $15k to $0 really won't help too much, other than to prevent further collection had it been unpaid. Plus if reporting a balance, it's factored into your mix of credit. Once it hits $0, then it is removed from your mix and that can play into any score change. If I had to predict, I'd say a change of up to 10 points, in either direction. BTW, the score from CreditKarma isn't a FICO score, but a FAKO called a TransRisk score. I don't know how that would change.

[Anonymous]

so it might have been worth it for the 10 pts. then as that would put me over the 660 mark (fingers crossed)  i will wait and see.  any other input is greatly appreciated.. also the auto loan is about to be done what role or increase may i see with that,, it was thru chase and i financed 8500 after putting 4K down (12500 total) and it is almost paid off (2 more payments of $265,, high intrest rate but i was trying to rebuild so i took it.. what impact do you think that will have on my score points wise?

thanx

[llecs]

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@Anonymous wrote:

so it might have been worth it for the 10 pts. then as that would put me over the 660 mark (fingers crossed) 

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Just remember, the score from CK isn't a FICO score and would be totally different from your TU FICO when pulled from your lender. My CK score right now is 658. My TU FICO is 682 as of yesterday. Stark difference. Sometimes my score from CK is lower than my FICO when pulled on the same day. Sometimes it's higher. YMMV.