topic Re: What is impacting my score the most? in Understanding FICO® Scoring

What is impacting my score the most?

Anonymous — Tue, 16 Nov 2010 13:38:31 GMT

I've managed to get rid of multiple collections on my credit report. Now, I'm down to the big ones. I'm trying to understand how I could be potentially at 700+ with minimal credit.

TU=652

EQ=651

Each credit report is posting almost completely different information. For instance, EQ is showing an old CC account which is in collections for (LVNV) $2,156. They're also showing Midland (Citibank) and the Citibank Charge-off as Credit Accounts, not collections. They are NOT shown on EQ as collection accounts. TU is not showing the Citibank charge-off but is showing a credit card in good order which was closed in 2004. TU is showing bad accounts as collection accounts.

I want to keep the charge-off on because it's aging my credit history 9+ years and I think by removing it, my EQ score would drop substantially because it would drop my credit history to less than 4 years.

In common, there is Pinnacle (Verizon Wireless) for $637 and Midland (Citibank) for $1,730.

If I can get those 2 out of the way, how much is this going to impact my score? Based on the simulator, I could hit near 700 just by paying my CC balance down. This is my only credit line, a CC for $300.

I'm looking to buy a house and obviously want to clear this up the right way. I'm just unsure how I can get to that level with minimal credit.

TRANSUNION

EQUIFAX

Re: What is impacting my score the most?

Anonymous — Tue, 16 Nov 2010 15:39:24 GMT

To buy a home you would more then likely have to either PIF or pay by settlement all owed debt. Most underwriters will require this. So holding onto a charge-off with-out paying could be grounds for a denial on mortgage application.

As far as your direct question for this post the COLLECTION on TU and or SERIOUS DELINQUENCY on EQ is impacting your score the most. The list on the left hurting your scores is listed with the most impact on top.

Good Luck

Re: What is impacting my score the most?

RobertEG — Wed, 17 Nov 2010 04:05:22 GMT

Charge-offs and collections are major derogs, and are probably having the greatest negative impact.

A charge-off should not be shown as a collection. Charge-offs are payment history and account status codes reported by the OC.

Collections are reported by debt collector, not OCs. An OC can post a status code of referred for collection, but it does become an actual CA in your CR until it is reported by a debt collector. . Both could post simultaneously on the same CR.

You can get a CO deleted without losing its account history. Dont request account deletion, but only request the deletion of the CO itself.

Discrepancies in reporting done to the three CRAs is not under the control of the CRA. Each creditor can choose to report an item of information to n0ne, one, two, or all three CRAs.

Re: What is impacting my score the most?

Anonymous — Wed, 17 Nov 2010 13:30:22 GMT

Thanks. I'm just having difficulty understanding how my score is where it's at and potentially where it can go. I only have one positive account and a bunch of negatives. The collections from Midland has a payment history of "OK" but was 120 days late in July. I'm assuming Equifax is scoring that also. Each of the collections on Equifax are read as Credit Accounts. I feel like if you go PFD my scores might actually drop because of how they're being accounted for. Obviously any lender would look at these and if I pay it off it would still report as "OK" for a while.

Am I overanalyzing this?

Re: What is impacting my score the most?

LIGHTNIN — Thu, 18 Nov 2010 04:11:54 GMT

I'll try to explain the way I understand it,but with my southern accent you may have problems.LOL. So if you dont understand it let us know

FICO scoring sees a collection anywhere on your CR, is what dings your CS.By collections, I mean LVNV or Midland which are CA's.

Where the CA's are located on your CR is insignificant, the account section or under the collections part of your CR.

FICO sees a CA's as a major derogs. Also a Paid CA is the same as a unpaid CA, should not see a score change.

Now if the CA's is deleted,your CS should improve but that depends on how old the debt is.

Re: What is impacting my score the most?

AndySoCal — Fri, 19 Nov 2010 02:41:53 GMT

Where did you get these credit reports from ?

Re: What is impacting my score the most?

haulingthescoreup — Fri, 19 Nov 2010 03:27:43 GMT

@AndySoCal wrote:
Where did you get these credit reports from ?

Well, if you're asking OP, those sure look like myFICO reports to me...

OP, it would be a good idea if you checked your full reports directly from each bureau. Third-party monitoring services, including myFICO, occasionally show reports in odd ways, because the info doesn't transmit over smoothly from the underlying reports.

Re: What is impacting my score the most?

Anonymous — Fri, 19 Nov 2010 15:08:18 GMT

The information was from myFico, my intention was to analyze how these accounts are being scored differently. I'm aware of how the information is interpreted with respect to my direct credit reports. I'm just trying to ensure I accomplish my goal of improving my score the best way possible. Obviously a lender would want them paid, I just have to do it the best way possible.

Re: What is impacting my score the most?

AndySoCal — Sat, 20 Nov 2010 03:35:19 GMT

The no installment loan reason from Equifax caused my question. That reason does not sound like FICO score reason.

Re: What is impacting my score the most?

haulingthescoreup — Sat, 20 Nov 2010 03:50:11 GMT

@AndySoCal wrote:
The no installment loan reason from Equifax caused my question. That reason does not sound like FICO score reason.

Good point. It looks like reason code #32: FICO Scoring Reason Codes (click on the link on the linked thread)

Re: What is impacting my score the most?

AndySoCal — Sat, 20 Nov 2010 04:07:09 GMT

There is a difference between lack of recent installment informaiton. This is implies you have an installment account that has not been updated recently. No installment loans means to me you do not have any installment loans.

Re: What is impacting my score the most?

Anonymous — Sat, 20 Nov 2010 05:47:50 GMT

@AndySoCal wrote:
There is a difference between lack of recent installment informaiton. This is implies you have an installment account that has not been updated recently. No installment loans means to me you do not have any installment loans.

FICO Reason Code #32 "Lack of recent installment loan information" means there are no active installment loans in the last six to twelve months in the credit file.

Other posters on these forums have confirmed that the score isn't impacted for about six months after the last installment loan is closed.

FICO measures risk, and when we don't have an active installment loan, we raise our level of risk because the system cannot give a complete judgement of our credit behavior.

Re: What is impacting my score the most?

AndySoCal — Sat, 20 Nov 2010 21:04:12 GMT

If this is reason 4 on the OP Equifax report someone needs to fix the verbiage being shown. The reason shonw in the OP would make more sense if it said no nrecent installment loans. What causes the reason code to be shown?

Re: What is impacting my score the most?

haulingthescoreup — Sun, 21 Nov 2010 17:43:20 GMT

You get a reason code like this if there hasn't been any activity on the account in the previous month. For loans, this would mean no payments, late charges and so forth.

For revolving credit, it would mean no charges, no payments, and so forth. There is activity (which is reported) on an account if you charge and pay during the month, for instance, even if the previous month's and this month's balances were $0.

The "recent activity" refers to activity at the lender level, not activity at the report/ CRA level (whether or not the balance has changed.)