topic Re: How Much is This Hurting Me? in Understanding FICO® Scoring

How Much is This Hurting Me?

Anonymous — Mon, 18 May 2009 03:12:58 GMT

I had a credit card with Chase. Stopped paying on it in 2005 and they charged it off with a balance of $9k in 2007. Subsequently the debt was sold and the balance is $17k. Debt is now beyond SOL in order to successfully win a judgement and will fall off my credit reports in about 2 - 2 1/2 years. Any one have any ideas how about how much this is hurting my FICO score (currently at 688) or how much it would hurt a mortgage app? This is the only derogatory on my report, with no recent inquiries and a fairly high utilizatio but is rapidly falliing.

Re: How Much is This Hurting Me?

llecs — Mon, 18 May 2009 05:43:21 GMT

If sold, it should read as a "paid charge-off". Does it show that?

Re: How Much is This Hurting Me?

Anonymous — Mon, 18 May 2009 15:43:21 GMT

It reads as a charge off. Of course the company that bought the debt is now reporting it. In any event, they are due to come off my report in a little over two years as the DOFD was in August 2004.

Re: How Much is This Hurting Me?

llecs — Mon, 18 May 2009 16:00:56 GMT

Is Chase reporting a balance?

Re: How Much is This Hurting Me?

Anonymous — Mon, 18 May 2009 20:12:15 GMT

No. A balance is being reported by the purchaser of the debt, but not Chase.

Re: How Much is This Hurting Me?

RobertEG — Thu, 21 May 2009 02:50:39 GMT

If the DOFD was 8/2004 and it was placed into CO or CA. the fallloff date would be 2/2012

Re: How Much is This Hurting Me?

Anonymous — Thu, 21 May 2009 19:10:42 GMT

My EX report says otherwise regarding falloff date. Regardless, it doesn't answer my questions: How much is it hurting my score and my ability to get a mortgage with a reasonable rate?

Message Edited by SDDave on 05-21-2009 12:10 PM

Re: How Much is This Hurting Me?

llecs — Thu, 21 May 2009 19:25:31 GMT

It could be hurting or helping your score. If this TL is older than your AAoA, especially by a good number of years, then it's age is probably helping more than the CO reference is hurting. If younger, then it is hurting. The damage is based on the other baddies reporting outside of this and how this pd CO is reporting (lates, etc.). However, you still have the CA reporting and the damage from that is quite a bit. If that is removed, the points gained could vary. It would depend on a number of variables like the assigned date, DOFD, DOLA, how it is reporting, the number of CAs remaining and the number of other baddies remaining. Most people see anywhere from 20-100 points when their last CA (and last baddie) is removed. DW just had her last CA removed (w/ one pd CO remaining) and her score only increased 3 pts. YMMV.

YMMV based on the lender. Some will take issue and some won't.