topic Re: Charge Offs% in Understanding FICO® Scoring

Charge Offs%

zk1278 — Sun, 03 Jul 2016 04:46:30 GMT

I had several credit cards through Capital One that got charged off in 2010 I paid 3 of them but still have 4 showing on my credit due to statue they should be off next year. They don't show now but sold to Portfolio in 2013 as charge off's does that start the 7 yr all over extending to 2020? This all came up when I was trying to find a mortgage score is too low now EQ 585 TU 612. Broker is suggesting I hire a company to help increase our score which charges $200 dep +$80 a month. I need some input on what to do I would like to buy a house within the next 6-12 months. I also have total utilization of 75% I am currently working on getting those under 30%. If anyone could give me input I would appreciate it.

Re: Charge Offs%

RobertEG — Sun, 03 Jul 2016 07:15:19 GMT

The exclusion date of a charge-off or collection is no later than 7 years plus 180 days from the date of first delinquency on the OC account in the chain of delinquency that immediately preceded the charge-off or collection.

The DOFD is a fixed date-certain based on your OC account, and is not affected by any sale of the debt or any other actions.

There is no restart of the exclusion period for a charge-off.

The DOFD must, by definition of a DOFD (see FCRA 605(c)), precede the charge-off to which it applies.

Thus, if a CO occured in 2010, the DOFD must be in 2010 or prior.

Re: Charge Offs%

surferchris — Sun, 03 Jul 2016 16:37:26 GMT

@RobertEG wrote:
The exclusion date of a charge-off or collection is no later than 7 years plus 180 days from the date of first delinquency on the OC account in the chain of delinquency that immediately preceded the charge-off or collection.
The DOFD is a fixed date-certain based on your OC account, and is not affected by any sale of the debt or any other actions.
There is no restart of the exclusion period for a charge-off.

The DOFD must, by definition of a DOFD (see FCRA 605(c)), precede the charge-off to which it applies.
Thus, if a CO occured in 2010, the DOFD must be in 2010 or prior.

Agreed.

Re: Charge Offs%

surferchris — Sun, 03 Jul 2016 16:43:00 GMT

In addition to waiting until next year (when the CO's fall off), I would also pay down your cards to below 9% on one card. Then make sure you have at least 3 bank cards, all reporting from now until when you are ready to purchase a home. Also use the FICO simulator to see what it suggests is your best course of action (and re-check it every month after your scores report). Continue to pay your rent on time and try to go FHA if you can.

Good luck.

Re: Charge Offs%

RonM21 — Sun, 03 Jul 2016 18:24:38 GMT

As mentioned already, I would get the utilization down for sure. That is something you have full control of at this point. I don't necessarily recommend paying another group that money each month, unless you can handle the costs with ease.

Do you have the exact dates those charge offs would be scheduled fir deletion? It should be in 2017, but hopefully you can wait until after they fall off to go for the mortgage.