topic Re: Will old charge offs falling off report increase my score? in Mortgage Loans

Will old charge offs falling off report increase my score?

Anonymous — Sun, 20 Sep 2020 17:41:37 GMT

I'm trying to qualify for a mortgage and need to get my Fico mortgage middle score above 660. Current Fico 5, 4 and 2 are 664, 643 and 639. I recently paid off 5 credit cards and left a balance on one more, for a total revolving utilization of 4%. I have a few late payments on my report, all more than 5 years ago. I have 6 old private student loans that are all charge offs and show 75 negative reports for each. These 6 accounts are going to fall off my report in a couple weeks. Should I expect a bump in my score? I'm wondering if I can get a 20 point boost.

Re: Will old charge offs falling off report increase my score?

sxa001 — Sun, 20 Sep 2020 22:22:38 GMT

You mentioned that you have lates that are five years old so those will still have some negative impacts to your scores. You will likely see a pretty good bump when the charge offs fall off but depending on how bad those lates are and how many will still exist you may not see a huge jump.

Re: Will old charge offs falling off report increase my score?

Anonymous — Mon, 28 Sep 2020 06:45:32 GMT

How many days are your lates? I think with them being old it doesn't matter that much now. You will see a nice bump when the charges off come off.

Re: Will old charge offs falling off report increase my score?

DebtStinks — Tue, 29 Sep 2020 15:38:51 GMT

Yes, you should see a decent increase in scores as a result of those 6 charge offs falling off your reports. As others have stated, lates will still impact your scores, but the greatest impact of lates, etc is in the first 24 months thereafter. With your scores only needing roughly 20 points, I think it's pretty safe to say you'll get that...maybe plus some.

Best of luck!

Re: Will old charge offs falling off report increase my score?

Anonymous — Wed, 30 Sep 2020 23:34:51 GMT

Update: My Equifax score just updated and it increased 51 points! Now just waiting on the other 2 to update to see where my middle score ends up.

Re: Will old charge offs falling off report increase my score?

Anonymous — Fri, 02 Oct 2020 13:38:48 GMT

I have a charge off and I disputed it (it's going to fall off soon anyway) I guess the credit agencies stopped counting it while it's being disputed. My Equifax score went up 50 points, Experian 37 points, and Transunion 18 points. I expect them to be added back but at least I know my score will go up when it falls off in a few months. I have some late payments from 2013 and one in 2015 but they aren't affecting my score as much.

Re: Will old charge offs falling off report increase my score?

Anonymous — Fri, 02 Oct 2020 13:57:30 GMT

I have a charge off from 2013. The DoFD is 12/2013. My TransUnion report says estimated removal is Oct 2020. On Oct 1st, I got my new Fico Report. My equifax mortgage score went from 719 to 805 because this charge off was removed (from Equifax). This charge off is the only "blemish" on my report. I'm looking forward to it being removed from TU and EX now

Re: Will old charge offs falling off report increase my score?

spiritcraft1 — Fri, 02 Oct 2020 14:07:40 GMT

@Anonymous wrote:
I have a charge off from 2013. The DoFD is 12/2013. My TransUnion report says estimated removal is Oct 2020. On Oct 1st, I got my new Fico Report. My equifax mortgage score went from 719 to 805 because this charge off was removed (from Equifax). This charge off is the only "blemish" on my report. I'm looking forward to it being removed from TU and EX now

Search "Early Exclusion", you may be able to clean everything up right now.

Re: Will old charge offs falling off report increase my score?

Anonymous — Fri, 02 Oct 2020 14:19:45 GMT

@spiritcraft1 wrote:
Search "Early Exclusion", you may be able to clean everything up right now.

I have in the past, but was too nervous to "upset the apple cart". Figured I'm not buying a house until early 2021 and will just let it organically fall off.