topic Re: 6 years old collection in Mortgage Loans

6 years old collection

CreditDumb — Fri, 16 Oct 2015 22:03:00 GMT

I have a 6 years old charge off of over $7,000 which was first reported in 02/2009. The loan officer I talked to recommended that I paid it off before I can get an FHA loan.
That charge off is 6 years old and I want to think that I am better off let it slide off my report.
My TU FICO 650 Fico 8 and 624 Fico 4.

Any advise will be a blessing.

Re: 6 years old collection

Anonymous — Fri, 16 Oct 2015 22:52:38 GMT

@CreditDumb wrote:
I have a 6 years old charge off of over $7,000 which was first reported in 02/2009. The loan officer I talked to recommended that I paid it off before I can get an FHA loan.
That charge off is 6 years old and I want to think that I am better off let it slide off my report.
My TU FICO 650 Fico 8 and 624 Fico 4.
Any advise will be a blessing.

Did he advise why paying it will be beneficial? Not saying you shouldn't pay it, but charge offs do not need to be factored into DTI ratios for FHA. Now if it's a collection account, that's a different story.

Re: 6 years old collection

CreditDumb — Sat, 17 Oct 2015 01:56:16 GMT

No..He has just pointed it to show me that my score needed improvement....

Re: 6 years old collection

Anonymous — Sat, 17 Oct 2015 03:21:43 GMT

Your 6 year old charge off is not impacting your score by much. Even if you paid it in full (but it still remained on your credit report as a collection) your score wouldn't move.

Re: 6 years old collection

Anonymous — Wed, 28 Oct 2015 18:44:58 GMT

@CreditDumb wrote:
No..He has just pointed it to show me that my score needed improvement....

Yeah if you pay it off it will change your utilization of credit which will increase your score.

Re: 6 years old collection

CreditDumb — Wed, 28 Oct 2015 18:48:44 GMT

Thsi is a car loan. It is not a revolving account.

Re: 6 years old collection

Anonymous — Wed, 28 Oct 2015 18:50:27 GMT

Oh then I don't see the point. I wouldn't pay it.

Re: 6 years old collection

CreditDumb — Wed, 28 Oct 2015 18:55:48 GMT

Yeah that's what I chose to do. But according to that loan officer, that old collection will prevent me from getting an FHA loan. That;s what is bugging me..

Re: 6 years old collection

Anonymous — Wed, 28 Oct 2015 18:58:11 GMT

I doubt that. My husband had 3 collections on his credit report totalling $8000 all from 2012 and we were approved for a conventional loan. They went with the lower of the two scores which was mines around 680.

Re: 6 years old collection

Anonymous — Wed, 28 Oct 2015 18:58:31 GMT

Call TU and ask for a supervisor and ask for an early exclusion.......might be worth a shot. The worst they say is No. Make sure you ask for a supervisor - a front line CSR won't be able to help you. (they do this all the time in the rebuilding forum. I think TU will do it the earliest (like 6 mos), EX 2-3 mos early and EQ only 1) If I have those in the right order....so if it is scheduled to fall off in Feb - you would be in the 6 month window.....

Re: 6 years old collection

CreditDumb — Wed, 28 Oct 2015 19:05:21 GMT

Thanks Jdana70. I will call them and post a followup..