topic Re: How to tell potential score increase in Understanding FICO® Scoring

How to tell potential score increase

Red1Blue — Fri, 07 Jun 2019 17:11:41 GMT

I bought Fico credit reports and looked into the simulators. It does not tell how much score gain I'll receive if the collection accounts are removed. I have 2 accounts showing as collection. If I were to make a settlement and if the were to remove the collections from the credit report do I see any gain in the scores? I want to get some idea so I can determine how much I want to settle the amount for and how quickly I want to get them out. The fico simulator is not tailored for strategy to rebuild the credit and scores. Especially it does not give any indication of how much score increase we will get if the collections were removed. How much score increase we will get if the lates are removed. It would be helpful to know some details then I can priorotize which ones to tackle first and how soon to clear things up. I know it is a long journey rebuilding the credit.

Re: How to tell potential score increase

Anonymous — Fri, 07 Jun 2019 18:17:17 GMT

Simulator doesn't do it because it's too variable.

If you can PFD it's going to be more points. If you just clear them and they stop updatig it's a bit less. If you have a large purchase coming up it's best to tackle them either way. I would say a good ballpark though is somewhere around 50 points but it's still dependent on the rest of your CR info.

Re: How to tell potential score increase

Anonymous — Fri, 07 Jun 2019 18:50:50 GMT

Simulators are trash, so I suggest not even bothering to look at them.

If you start a thread and list out all of your profile data it would be helpful in getting the advice you're looking for. You'd need to list out all of your accounts with balances/limits, all negative items present on your CR (not just the 2 collections) including late payments or anything else, your total number of accounts, your age of accounts factors, etc.

It's possible to see a 100 point gain from the removal of 2 collections and possible to see a 0 point gain, or anything in between. The more profile data you can provide, the better the prediction members on here can give you.

Re: How to tell potential score increase

Red1Blue — Fri, 07 Jun 2019 19:57:52 GMT

Thanks for the reply to my message. I am trying to put together a plan of action and figure out what steps to take. There is no way I would be able to clear every thing over night. Probably takes me about 6-9 months to clean things up. I am not looking to add any new credit. Just clean things up and get a boost in the scores. In case if I want to apply for good jobs, I dont want to be disqualified due to poor credit. Hoping to clean things up and live a comfortable life with no debt.

Re: How to tell potential score increase

firemartinez1980 — Sun, 09 Jun 2019 21:18:11 GMT

If you have any update on this let me know.

I am in the same boat as far as wanting to know what I can expect my score to change to. I had a collection for almost $900 on my report for the last 4 years and just paid it off a few days ago as I am trying to rebuild my credit. In the agreement, the collection agency is also going to completely delete it from my report. Just curious how much my score will go up.

Re: How to tell potential score increase

Anonymous — Sun, 09 Jun 2019 23:15:19 GMT

If it helps, went from 681 to 706 by removing a $7k collection. Utl at 45%, another paid CO on file. Everything else goodies.

Re: How to tell potential score increase

Anonymous — Sun, 30 Jun 2019 12:11:29 GMT

The other CO went from “Payment Status: Charged Off” and Util of 39% to “Payment Status: Legally paid in full for less than Full Balance” and Balance was updated to blank and credit bumped to 716 (10pt increase).

Looking to get this removed due to some reporting errors. If it happens i’ll update if anything changes.

Re: How to tell potential score increase

Red1Blue — Sun, 30 Jun 2019 13:06:55 GMT

@Anonymous wrote:
The other CO went from “Payment Status: Charged Off” and Util of 39% to “Payment Status: Legally paid in full for less than Full Balance” and Balance was updated to blank and credit bumped to 716 (10pt increase).

Looking to get this removed due to some reporting errors. If it happens i’ll update if anything changes.

Congrats for the score increase in your reports. I am trying to do the same thing by chipping away baddies little bit at a time. Looks like it might take 6-9 months for me to completely resolve all the issues. Good luck with your cleanup efforts.

Re: How to tell potential score increase

Anonymous — Sun, 30 Jun 2019 14:52:00 GMT

632 to 716 in 6 months. I’m not complaining. It takes time and dozens of letter but it’s doable.

Re: How to tell potential score increase

SouthJamaica — Mon, 01 Jul 2019 01:02:15 GMT

@Red1Blue wrote:
I bought Fico credit reports and looked into the simulators. It does not tell how much score gain I'll receive if the collection accounts are removed. I have 2 accounts showing as collection. If I were to make a settlement and if the were to remove the collections from the credit report do I see any gain in the scores? I want to get some idea so I can determine how much I want to settle the amount for and how quickly I want to get them out. The fico simulator is not tailored for strategy to rebuild the credit and scores. Especially it does not give any indication of how much score increase we will get if the collections were removed. How much score increase we will get if the lates are removed. It would be helpful to know some details then I can priorotize which ones to tackle first and how soon to clear things up. I know it is a long journey rebuilding the credit.

1. Simulators are not meaningful and will not tell you how many points you will get.

2. If you "settle" a debt you can wind up with a long term negative.

3. By paying off an item you do not remove it, unless you have successfully negotiated a "pay-for-delete".

Re: How to tell potential score increase

Anonymous — Mon, 01 Jul 2019 11:23:52 GMT

Would like to hear your reasoning about settling a debt becoming a long term negative.

Re: How to tell potential score increase

SouthJamaica — Mon, 01 Jul 2019 22:30:04 GMT

@Anonymous wrote:
Would like to hear your reasoning about settling a debt becoming a long term negative.

They sometimes call it a "charge off", a "modification", etc. They have various code names for settlements which can keep your scores low for a long time.

Re: How to tell potential score increase

Anonymous — Mon, 01 Jul 2019 23:12:53 GMT

Not from my observations. My chargeoff changed status and the balance was updated to $0 and my scores have increase pretty significantly due to that. I gained +10pts once it changed status and another +10pts once it was changed to $0.

Also, a Charge off is not a settlement. A settlement is due to a charge-off. Ideally, you want to dispute or request deletion for payment but that is nearly impossible when dealing with the original creditor.

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Re: How to tell potential score increase

SouthJamaica — Tue, 02 Jul 2019 11:10:14 GMT

@Anonymous wrote:
Not from my observations. My chargeoff changed status and the balance was updated to $0 and my scores have increase pretty significantly due to that. I gained +10pts once it changed status and another +10pts once it was changed to $0.

Also, a Charge off is not a settlement. A settlement is due to a charge-off. Ideally, you want to dispute or request deletion for payment but that is nearly impossible when dealing with the original creditor.

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There is not the kind of consistency in reporting these types of events which you suggest.

They might list a settlement as a chargeoff, or as something else.

In your case the settlement is reported as a settlement. Which is a long term negative.

Re: How to tell potential score increase

Anonymous — Tue, 02 Jul 2019 11:04:01 GMT

It’s reported as a settlement and will stay in the credit as long as every other negative which is 7 years.

Re: How to tell potential score increase

SouthJamaica — Tue, 02 Jul 2019 11:11:46 GMT

@Anonymous wrote:
It’s reported as a settlement and will stay in the credit as long as every other negative which is 7 years.

..... confirming what I said earlier: "2. If you "settle" a debt you can wind up with a long term negative."

Whatever name the creditor chooses to assign to it -- and there are many -- the result is the same.

Re: How to tell potential score increase

Anonymous — Tue, 02 Jul 2019 11:17:52 GMT

Versus a short term negative would be what exactly?

Re: How to tell potential score increase

Anonymous — Wed, 03 Jul 2019 20:11:29 GMT

For the record, there aren’t short term or long term negatives when it comes to credit. They all stay on your credit for 7 years from the date of first delinquency.

Re: How to tell potential score increase

Anonymous — Wed, 03 Jul 2019 21:54:44 GMT

@Anonymous wrote:
For the record, there aren’t short term or long term negatives when it comes to credit. They all stay on your credit for 7 years from the date of first delinquency.

I think what was being referred to would be "major" verses "minor" negatives. Both will impact scores for the full 7 years, but with different potency. A major will typically only lose 1/3 of it's sting during the first 2 years, with 2/3 of the initial sting sticking around until it's gone at 7 years. Conversely, a minor will typically lose 2/3 of it's sting during the first 2 years, with 1/3 of the initial sting lasting until dropoff at 7 years.

Re: How to tell potential score increase

Anonymous — Wed, 03 Jul 2019 22:16:59 GMT

Based on what parameters?