topic Re: Avg. FICO increase when CA approves PFD? in General Credit Topics

Avg. FICO increase when CA approves PFD?

stee0616 — Tue, 01 Apr 2008 03:20:36 GMT

Quick question - anybody had PFD success with CAs? If so, how much did you FICO score increase once the negative info was removed?

The only collection on my report will be removed in 7-10 business days per PFD agreement. I'm hoping my FICO will increase enough so I can qualify for a conventional mortgage by this Fall!

Message Edited by stee0616 on 03-31-2008 08:20 PM

Re: Avg. FICO increase when CA approves PFD?

Anonymous — Tue, 01 Apr 2008 03:21:26 GMT

I've had two deletes so far, but they were so old & both about 1 yr from falling off, that my score was not affected at all. The newer the collection is, the more your score will be positively affected.

Re: Avg. FICO increase when CA approves PFD?

stee0616 — Tue, 01 Apr 2008 03:24:04 GMT

Collection was first reported in 2004. Last report according to EX is 12/2007. So do they use 2004 or 2007?

Re: Avg. FICO increase when CA approves PFD?

Anonymous — Tue, 01 Apr 2008 03:28:34 GMT

they'll use 2004. Depending on where you pulled your reports from, you may be able to see the date that account is set to fall off.

However, a PFD can never "hurt" your credit... it might not make your score skyrocket, but it will definitely make your report look "prettier" during a manual review

Re: Avg. FICO increase when CA approves PFD?

Anonymous — Tue, 01 Apr 2008 03:47:50 GMT

____________________________________________________________________________________

However, a PFD can never "hurt" your credit...

____________________________________________________________________________________

Just want to correct this statement. A PFD in some situations CAN hurt your credit. It most likely won't in this case, but for others that read the thread there are some cases when it can.

If the account you PFD is an old old account and you have a thin file then the loss of history can offset the point gain realized by removing the derogatory.

Van

Re: Avg. FICO increase when CA approves PFD?

Anonymous — Tue, 01 Apr 2008 03:50:11 GMT

Vanyel wrote:

____________________________________________________________________________________

However, a PFD can never "hurt" your credit...

____________________________________________________________________________________

Just want to correct this statement. A PFD in some situations CAN hurt your credit. It most likely won't in this case, but for others that read the thread there are some cases when it can.

If the account you PFD is an old old account and you have a thin file then the loss of history can offset the point gain realized by removing the derogatory.

Van

CA accounts do not count towards average age or oldest account.

Losing a CA will never shorten your history.

Re: Avg. FICO increase when CA approves PFD?

Anonymous — Tue, 01 Apr 2008 03:52:48 GMT

Thanks, cheddar. That's what I thought, but wasn't sure.

Message Edited by ivyalmighty on 03-31-2008 08:52 PM

Re: Avg. FICO increase when CA approves PFD?

Anonymous — Tue, 01 Apr 2008 04:04:03 GMT

Understood Cheddar, just wanted to correct that blanket statement. Lots of folks wouldn't make the distinction, and I'd hate to see them take an action based on what's a very clear statement that could be easily misunderstood.

Van

Re: Avg. FICO increase when CA approves PFD?

fused — Tue, 01 Apr 2008 04:12:09 GMT

Cheddar is correct with regard to collections! I would like to add that derogatory trade lines such as charge-offs do factor in credit history length and average-age of accounts.

Re: Avg. FICO increase when CA approves PFD?

Anonymous — Tue, 01 Apr 2008 04:15:53 GMT

So the delineation to be made is between a true COLLECTION account and a CHARGE-OFF account, right?

A collection will never hurt your score if it disappears, but a charge-off on a TL *might* if it's one of your older accounts?

Re: Avg. FICO increase when CA approves PFD?

Anonymous — Tue, 01 Apr 2008 04:31:07 GMT

ivyalmighty wrote:

So the delineation to be made is between a true COLLECTION account and a CHARGE-OFF account, right?

A collection will never hurt your score if it disappears, but a charge-off on a TL *might* if it's one of your older accounts?

You got it. Except:

If the loss of your only CA causes you to be rebucketed, your score may drop due to that. Otherwise, losing a collection will always have a neutral to positive effect, depending on how old it is and how many other collections you have.

Re: Avg. FICO increase when CA approves PFD?

Anonymous — Tue, 01 Apr 2008 04:34:54 GMT

Lucky for me, my scores are so low (very high 500's to low 600's) that the closest I'll get to a "new bucket" anytime soon is a rusty teaspoon! HA!