topic Re: Old judment dropped and increased score by 42 points? in Understanding FICO® Scoring

Old judment dropped and increased score by 42 points?

SCYD — Thu, 17 Mar 2016 17:21:19 GMT

I have a bankruptcy that has been on my report for 6 years with 4 more years to go.

I recently had transunion removed a judgment and 4 old accounts with lates that were suppose to fall off later this year.

The only bad thing that remains on my credit is the bankruptcy.

My score went from 683 to 725. IS this the norm? Where these accounts affecting me this much? Show I contact Equifax and Experian and try to do the same?

Re: Old judment dropped and increased score by 42 points?

Revelate — Thu, 17 Mar 2016 19:49:30 GMT

@SCYD wrote:
I have a bankruptcy that has been on my report for 6 years with 4 more years to go.

I recently had transunion removed a judgment and 4 old accounts with lates that were suppose to fall off later this year.

The only bad thing that remains on my credit is the bankruptcy.

My score went from 683 to 725. IS this the norm? Where these accounts affecting me this much? Show I contact Equifax and Experian and try to do the same?

Quite possibly; I'm fairly confident that BK's / judgements (tax liens / collections too) bucket you, and then deliquencies are scored inside the bucket. 725 is kinda average for a nasty derogatory from 6 years ago, my scores got up to near 740 (733-739) with a highly optimized file FICO 8 but now I'm in the 710 range at 2 years AAOA, a tax lien from 2010 (and a 30/60 late) and ugly installment utilization and too many cards with balances. I'm thinking I might sniff 720 on a EQ/EX once the cards report more prettily and I cross the AAOA threshold to 3 years in 2 months.

Re: Old judment dropped and increased score by 42 points?

SCYD — Thu, 17 Mar 2016 20:05:09 GMT

@Revelate wrote:
@SCYD wrote:
I have a bankruptcy that has been on my report for 6 years with 4 more years to go.

I recently had transunion removed a judgment and 4 old accounts with lates that were suppose to fall off later this year.

The only bad thing that remains on my credit is the bankruptcy.

My score went from 683 to 725. IS this the norm? Where these accounts affecting me this much? Show I contact Equifax and Experian and try to do the same?
Quite possibly; I'm fairly confident that BK's / judgements (tax liens / collections too) bucket you, and then deliquencies are scored inside the bucket. 725 is kinda average for a nasty derogatory from 6 years ago, my scores got up to near 740 (733-739) with a highly optimized file FICO 8 but now I'm in the 710 range at 2 years AAOA, a tax lien from 2010 (and a 30/60 late) and ugly installment utilization and too many cards with balances. I'm thinking I might sniff 720 on a EQ/EX once the cards report more prettily and I cross the AAOA threshold to 3 years in 2 months.

Thanks. My oldest account still showing is from 1994 (3 of them). I am not showing any other lates, just the bankruptcy. I have several credit cards with decent limits, only 2 credit cards out of 17 have a 10% balance. I have a car loan from 2014 for about 35K with a balance of 18K and a mortgage from 2004 of $424,000.00 with a balance of $38,000.00 and no lates on either account. However, I am currently working on having my mortgage added since for whatever reason this is the only credit report it's not reflected on.

Do you think adding the mortgage will give me another boost in my score?

Re: Old judment dropped and increased score by 42 points?

Revelate — Thu, 17 Mar 2016 20:21:16 GMT

@SCYD wrote:
@Revelate wrote:
@SCYD wrote:
I have a bankruptcy that has been on my report for 6 years with 4 more years to go.

I recently had transunion removed a judgment and 4 old accounts with lates that were suppose to fall off later this year.

The only bad thing that remains on my credit is the bankruptcy.

My score went from 683 to 725. IS this the norm? Where these accounts affecting me this much? Show I contact Equifax and Experian and try to do the same?
Quite possibly; I'm fairly confident that BK's / judgements (tax liens / collections too) bucket you, and then deliquencies are scored inside the bucket. 725 is kinda average for a nasty derogatory from 6 years ago, my scores got up to near 740 (733-739) with a highly optimized file FICO 8 but now I'm in the 710 range at 2 years AAOA, a tax lien from 2010 (and a 30/60 late) and ugly installment utilization and too many cards with balances. I'm thinking I might sniff 720 on a EQ/EX once the cards report more prettily and I cross the AAOA threshold to 3 years in 2 months.

Thanks. My oldest account still showing is from 1994 (3 of them). I am not showing any other lates, just the bankruptcy. I have several credit cards with decent limits, only 2 credit cards out of 17 have a 10% balance. I have a car loan from 2014 for about 35K with a balance of 18K and a mortgage from 2004 of $424,000.00 with a balance of $38,000.00 and no lates on either account. However, I am currently working on having my mortgage added since for whatever reason this is the only credit report it's not reflected on.

Do you think adding the mortgage will give me another boost in my score?

Minimal, right now; adding the mortgage doesn't move your installment utilization marker materially (still north of 10% aggregate) but what it does do is gets you closer to that 10% line and you'll reach it faster than with the auto loan alone and when that happens you'll get a non-trivial bump, as much as 18-20 points I'd estimate on FICO 8 (nothing on FICO 04 though). Right now it's just payment history... I'd want it on my reports though for UW goodness if nothing else as that's a pretty tradeline to have from that perspective.

If you have a pretty tradeline just let the lates age off as the tradeline will turn completely positive after that. You're darned close to optimal otherwise.

FWIW historically if I got my installment utilization past the first breakpoint plus my other upcoming small optimizations I'd be right where you are scorewise so it's not like you're doing shabbily .

Re: Old judment dropped and increased score by 42 points?

SCYD — Fri, 18 Mar 2016 01:25:19 GMT

@Revelate wrote:
@SCYD wrote:
@Revelate wrote:
@SCYD wrote:
I have a bankruptcy that has been on my report for 6 years with 4 more years to go.

I recently had transunion removed a judgment and 4 old accounts with lates that were suppose to fall off later this year.

The only bad thing that remains on my credit is the bankruptcy.

My score went from 683 to 725. IS this the norm? Where these accounts affecting me this much? Show I contact Equifax and Experian and try to do the same?
Quite possibly; I'm fairly confident that BK's / judgements (tax liens / collections too) bucket you, and then deliquencies are scored inside the bucket. 725 is kinda average for a nasty derogatory from 6 years ago, my scores got up to near 740 (733-739) with a highly optimized file FICO 8 but now I'm in the 710 range at 2 years AAOA, a tax lien from 2010 (and a 30/60 late) and ugly installment utilization and too many cards with balances. I'm thinking I might sniff 720 on a EQ/EX once the cards report more prettily and I cross the AAOA threshold to 3 years in 2 months.

Thanks. My oldest account still showing is from 1994 (3 of them). I am not showing any other lates, just the bankruptcy. I have several credit cards with decent limits, only 2 credit cards out of 17 have a 10% balance. I have a car loan from 2014 for about 35K with a balance of 18K and a mortgage from 2004 of $424,000.00 with a balance of $38,000.00 and no lates on either account. However, I am currently working on having my mortgage added since for whatever reason this is the only credit report it's not reflected on.

Do you think adding the mortgage will give me another boost in my score?
Minimal, right now; adding the mortgage doesn't move your installment utilization marker materially (still north of 10% aggregate) but what it does do is gets you closer to that 10% line and you'll reach it faster than with the auto loan alone and when that happens you'll get a non-trivial bump, as much as 18-20 points I'd estimate on FICO 8 (nothing on FICO 04 though). Right now it's just payment history... I'd want it on my reports though for UW goodness if nothing else as that's a pretty tradeline to have from that perspective.

If you have a pretty tradeline just let the lates age off as the tradeline will turn completely positive after that. You're darned close to optimal otherwise.

FWIW historically if I got my installment utilization past the first breakpoint plus my other upcoming small optimizations I'd be right where you are scorewise so it's not like you're doing shabbily .

Great Thanks.

Re: Old judment dropped and increased score by 42 points?

cem13 — Fri, 18 Mar 2016 17:31:29 GMT

@Revelate wrote:

Minimal, right now; adding the mortgage doesn't move your installment utilization marker materially (still north of 10% aggregate) but what it does do is gets you closer to that 10% line and you'll reach it faster than with the auto loan alone and when that happens you'll get a non-trivial bump, as much as 18-20 points I'd estimate on FICO 8 (nothing on FICO 04 though). Right now it's just payment history... I'd want it on my reports though for UW goodness if nothing else as that's a pretty tradeline to have from that perspective.
If you have a pretty tradeline just let the lates age off as the tradeline will turn completely positive after that. You're darned close to optimal otherwise.
FWIW historically if I got my installment utilization past the first breakpoint plus my other upcoming small optimizations I'd be right where you are scorewise so it's not like you're doing shabbily .

I agree with Revelate. I did not reaffirm my house in my BK7 in 2011. I did have student loans survive the BK7. I did a re-fi on my house because I did a short sale to myself and knocked off $40K of my balance. Once the mortgage hit my report, I saw a 2~3 point gain which is no biggie.

The real benefit is that the mortgage is reporting now for all U/W to see. I appiled to Navy for a PLOC in 2015 before I re-fi'd. They asked me if I own or rent, I replied "OWN". They called me back to say that the mortgage does not show up on my CR and did I own the home free and clear? I replied that I did not reaffirm. I asked them does it make a difference. The U/W said, "yes it does".

So having a mortgage report may not boost your scores but it does look very good in the eyes of the U/W.