topic Re: How much does a ~5yr old c/o affect my credit score? in General Credit Topics

How much does a ~5yr old c/o affect my credit score?

Anonymous — Sun, 08 Jan 2012 04:29:23 GMT

I have a c/o from bofa from july 06.

It was an auto loan that I paid off early but interest was not disclosed to me when I made out the check. I ended up paying the remaining amount in jan '08. At the time a bofa rep over the phone refused to help me and It now shows up in my credit report as a c/o.

My fico score is ~715 right now. I checked my cr and I have a lot of hard inquires from when I bought my house in june '10.

So my question is how much does that c/o affect my score? and should I bother sending off GW letters to bofa execs?

I have a creditKarma account and it shows my hard inquire score as a D but the Derogatory score as a A (???)

I wondering If I should just be patient and let the hard inquires drop off, most should be going in April.

I'm planning on buying a new car next year and I would also like to refi my house in the near future.

Re: How much does a ~5yr old c/o affect my credit score?

Anonymous — Sun, 08 Jan 2012 14:40:59 GMT

Hi and Welcome to the Forums.

I hade a CO on my all 3 of my reports back in May 2010 (it was my only derog and also the CO was reporting a 0 balance) my EQ was 700, TU was 727, the DOFD on my CO was from 1/06 (I was the victim of ID theft) and I was disputing it. HSBC finally did a proper investigation and they must have determined it was not an account opened by me (which it was not) so after 5 months of disputing with HSBC, they finally had it removed from all CRA's.

The day I found out that it was removed from my reports, I pulled my EQ and TU reports here at MyFico and like I said above my EQ was 700 with the CO reporting and my TU was 727, after the CO was removed my EQ went from 700 to 777 and my TU went from 727 to 784 or 786 (can't remember which) so in my case that CO was weighing very heavily on my scores, I mean I went from OK credit one day, to Excellent credit the next day.

I am not saying you should see the same results, your results will depend on other factors that are listed on your reports, but I just wanted to give you my experience since your CO is just about as old as mine was.

Are your reports clean otherwise, or do you have other derogs on your reports?

You mentioned that you have many inq's, in some cases the inq's will diminish over time and when each falls off you may only see a small increase in points if any, and other times when inq's reaches the year mark and are no longer factored into your score you could see a nice increase in points, I can't explain why these two different scenarios take place, but they do, I have had two inq's hit the year mark on TU back in Dec 2011 and I only picked up 4 points when both hit the year mark.

But when I was in the lower 700's, when an inq hit the year mark, I was getting about 9 points per inq, but it seemed that once I reached the 770's the inq's were diminishing over time and when they finally hit the year mark I would gain very few to 0 points when they finally hit the year mark. Each person will experience different results.

Can you give us a better picture of what you credit profile looks like?

How many CC's do you have listed on your report/s

What are your AAoA's

Installment loans

Mortgage

Student loans

Utilization

How many inq's

How many CC you have that have balances

And other derogs (if any)

You said your FICO is 715 now, is that EQ or TU?

To make it easier for you, just give us the info I requested above from that report, instead of all three reports, rarely do people have the same exact info on all three reports, some do, but it is very rare.

This info will help us have a better picture of how your credit profile looks and may give us a better chance of telling you what kind of increase you may see (it is going to be a guess at best anyway, but the more info we have, the better our guesses might be).

Best of Luck!

Re: How much does a ~5yr old c/o affect my credit score?

Anonymous — Sun, 08 Jan 2012 17:09:53 GMT

@Anonymous wrote:
I have a c/o from bofa from july 06.
It was an auto loan that I paid off early but interest was not disclosed to me when I made out the check. I ended up paying the remaining amount in jan '08. At the time a bofa rep over the phone refused to help me and It now shows up in my credit report as a c/o.
My fico score is ~715 right now. I checked my cr and I have a lot of hard inquires from when I bought my house in june '10.

So my question is how much does that c/o affect my score? and should I bother sending off GW letters to bofa execs?

I have a creditKarma account and it shows my hard inquire score as a D but the Derogatory score as a A (???)
I wondering If I should just be patient and let the hard inquires drop off, most should be going in April.

I'm planning on buying a new car next year and I would also like to refi my house in the near future.

A CO will hurt until the day it comes off your report. It is so hard to stipulate how much due to all the factors included in FICO scoring.

A person with a higher score will be impacted more than a lower scored person.

It never hurts to send a GW letter. All they can do is say no. Personally, I would start at the top of the food chain, explain exactly what happened and go from there.

Mortgage and auto inquiries, over a certain time span, only count as 1 inquiry.

Re: How much does a ~5yr old c/o affect my credit score?

Anonymous — Sun, 08 Jan 2012 18:06:00 GMT

Thank you for your extremely informative reply

My report is clean other than that single derog.

TU reports I have 10 hard inq's in the past 2 yrs with 9 of the 10 with an April '10 date.

Answers to your questions:

How many CC's do you have listed on your report/s-- 10 cc's with 8 open accounts

What are your AAoA's -- average age is 69 months oldest is 134 months

Installment loans -- 12k on a single loan

Mortgage -- 144k on mortgage

Student loans -- none

Utilization -- 2%

How many inq's -- 10

How many CC you have that have balances -- 2

And other derogs (if any)-- 0

My transrisk score is 700

I just check my TU cr and it says that c/o will drop off in 4/13. That can't be right but I hope if the GW letters are unsuccessfull it does drop by then.

Thanks

Re: How much does a ~5yr old c/o affect my credit score?

pizzadude — Sun, 08 Jan 2012 18:40:24 GMT

If the CO is the only baddie on your reports then you should see a large score boost when it is removed. You would be moving from a FICO scoring bucket with major derogs into a clean scoring bucket.

Re: How much does a ~5yr old c/o affect my credit score?

Anonymous — Sun, 08 Jan 2012 19:29:43 GMT

If it was CO'd in 06 then a 2013 drop date would be correct.

Re: How much does a ~5yr old c/o affect my credit score?

Lel — Mon, 09 Jan 2012 05:09:25 GMT

@pizzadude wrote:
If the CO is the only baddie on your reports then you should see a large score boost when it is removed. You would be moving from a FICO scoring bucket with major derogs into a clean scoring bucket.

This wasn't the case for me. I had a CO on my Equifax report from Verizon, but I had never had a Verizon account during the dates indicated. It was clearly an error, and took a long time for it to be removed. When I applied for a mortgage in 2006, which was about 5 years past the date of this erroneous CO, my EQ score was around 800. When it was finally removed a year or so later, there was no discernible effect on my score. I suspect that the negative effect of the CO degraded over time.

Re: How much does a ~5yr old c/o affect my credit score?

laz98 — Mon, 09 Jan 2012 07:56:16 GMT

@Lel wrote:
@pizzadude wrote:
If the CO is the only baddie on your reports then you should see a large score boost when it is removed. You would be moving from a FICO scoring bucket with major derogs into a clean scoring bucket.
This wasn't the case for me. I had a CO on my Equifax report from Verizon, but I had never had a Verizon account during the dates indicated. It was clearly an error, and took a long time for it to be removed. When I applied for a mortgage in 2006, which was about 5 years past the date of this erroneous CO, my EQ score was around 800. When it was finally removed a year or so later, there was no discernible effect on my score. I suspect that the negative effect of the CO degraded over time.

+1 for me too

Re: How much does a ~5yr old c/o affect my credit score?

pizzadude — Mon, 09 Jan 2012 15:38:32 GMT

@Lel wrote:
@pizzadude wrote:
If the CO is the only baddie on your reports then you should see a large score boost when it is removed. You would be moving from a FICO scoring bucket with major derogs into a clean scoring bucket.
This wasn't the case for me. I had a CO on my Equifax report from Verizon, but I had never had a Verizon account during the dates indicated. It was clearly an error, and took a long time for it to be removed. When I applied for a mortgage in 2006, which was about 5 years past the date of this erroneous CO, my EQ score was around 800. When it was finally removed a year or so later, there was no discernible effect on my score. I suspect that the negative effect of the CO degraded over time.

Good point, it may not bounce your score if you are already at the "top" of the scoring bucket.....

Re: How much does a ~5yr old c/o affect my credit score?

Anonymous — Mon, 09 Jan 2012 18:38:13 GMT

I thought a c/o's drop off in 7yrs and up to 7years plus 180days from the dofd?

So it should come off in july '13 if they drop it in 7 years and not make me suffer even more.

I'd be happy if it does comes off in april '13 because that's just about when I plan on buying the new car. This one now has 172k on it so I really need a new car soon

I sent off two GW letters to bofa today but I'm pretty sure they will be shot down. I'll still send two every month until it drops off just to harass them..

Re: How much does a ~5yr old c/o affect my credit score?

nomoore — Mon, 09 Jan 2012 19:22:40 GMT

My TU FICO score jumped almost a hundred points when I successfully GW'd a 6 year old c/o, a repo'd car that I was co-signed on. It was the only negative on my report. The first TU score was 682 and was pulled from here (TU98?). The second was a month later and was from an AMEX approval. I don't know what version of TU FICO amex uses but regardless, that was a HUGE leap in my score. Of course everyones credit profile is different and you have a much thicker credit profile than I do so YMMV.

Re: How much does a ~5yr old c/o affect my credit score?

RobertEG — Mon, 09 Jan 2012 20:59:29 GMT

As has been pointed out, the date of the CO is immaterial to CR exclusion date.

What is the DOFD on the OC account? FCRA 605(c) requires exclusion of the CO after 7 years plus 180 days from the DOFD.

Re: How much does a ~5yr old c/o affect my credit score?

Anonymous — Tue, 10 Jan 2012 18:44:55 GMT

According to my EQ cr the "Date Major Delinquency First Reported" is 11/06. This first 30 late is aug '06.

Re: How much does a ~5yr old c/o affect my credit score?

Anonymous — Tue, 10 Jan 2012 20:46:33 GMT

Thanks everyone who has posted here. This is giving me good feeling. I have a 7 year old collection that will fall off next month from EX and the following month from TU and in April for EQ. I would do pulls for TU and EQ before and after, but they cost $20 each. I probably won't pull TU because it is a '98 score and useless. I think I will pull an EQ when I confirm it has dropped off and let you know that score versus the 686 I pulled back in May. My lender pulled a 690 for EX and my TU is usually a little over 700. I really hope to get all my scores over 735 when this finally drops off.

Re: How much does a ~5yr old c/o affect my credit score?

Anonymous — Wed, 18 Jan 2012 01:19:07 GMT

Here's an update on the GW letters I sent out last week.

I sent the letters out to the address on my CR and to the CEO in north carolina. I receieved a call today from a rep in Los Angeles. She went over my letter and said she might be able to get the c/o off. It seems the only way they will remove a c/o is if it is a bank error. She said there's no guarantee but I'm happy I wasn't just shot down on my first try.

Re: How much does a ~5yr old c/o affect my credit score?

CS800 — Wed, 18 Jan 2012 02:47:28 GMT

I have a CO that's supposed to be coming off my EX this year according to my official EX report (scheduled to report until Dec 2012) SO im hoping to get some kind of boost from this.

Re: How much does a ~5yr old c/o affect my credit score?

RobertEG — Thu, 19 Jan 2012 08:02:50 GMT

Just as significant as its impact on your three digit number is its impact upon any manual review of your credit report.

A charge-off results from a statement by the creditor that the debt was delinquent to the point that they considered it "uncollectible."

Not a very flattering official statement by a former creditor.

Re: How much does a ~5yr old c/o affect my credit score?

Anonymous — Wed, 25 Jan 2012 21:06:51 GMT

Success!

I received a call from Bofa and they will be removing the c/o from my cr. I should be getting a letter from them in the next few days and they said it should be off my cr's in 30-45 days.

I wish I had done the GW letter sooner. Maybe since they admitted fault they will refinance my mortgage rate to an appropriate rate for free?..... or maybe that's pushing it.

Re: How much does a ~5yr old c/o affect my credit score?

pizzadude — Wed, 25 Jan 2012 21:56:49 GMT

@Anonymous wrote:
Success!
I received a call from Bofa and they will be removing the c/o from my cr. I should be getting a letter from them in the next few days and they said it should be off my cr's in 30-45 days.
I wish I had done the GW letter sooner. Maybe since they admitted fault they will refinance my mortgage rate to an appropriate rate for free?..... or maybe that's pushing it.

Wow !! That's great that they will be removing it ~ hopefully you will get a nice score bump....

You are one of the only people that has ever successfully achieved success with BoA, I guess it helped that they realized it was their mistake. Congrats !!!

Re: How much does a ~5yr old c/o affect my credit score?

Anonymous — Tue, 07 Feb 2012 15:18:13 GMT

Bofa removed the c/o from all three cra's. I've yet to recieve the letter though, could it be they sent it to the wrong address?

My score went up to 771