topic Re: Will this lower my score? in Rebuilding Your Credit

Will this lower my score?

Anonymous — Wed, 15 Feb 2012 15:09:44 GMT

I am in the process of repairing my credit! I just got my scores from myFico today and noticed my TransUnion is way higher, despite having 8 collections, compared to only 3 on my Equifax. The reason seems to be length of total credit history. I have an installment account for a student loan listed as "In Collection" that was opened in 2002. This is not reported to Equifax, so my total credit history is under 2 years, when a card I am an AU on was opened.

This derogatory mark is set to expire in March, and I am worried that my TransUnion score will plummet down below 600 like my Equifax when my total credit history time drops. I think the positive gained from the time is probably much greater than the negative from the "In Collection" status. Do you think my fears are correct?

I actually just started repaying this loan about 2 years ago and have been making on-time payments towards the balance since. I just faxed a GW request to the University this morning in the hopes that they would update the status to positive and keep it on my trade lines as I continue to pay it. Obviously, this is the ideal situation. Any other possibilities you can suggest?

Thanks!

Re: Will this lower my score?

Anonymous — Wed, 15 Feb 2012 20:11:05 GMT

bump, sorry.

Re: Will this lower my score?

RobertEG — Wed, 15 Feb 2012 20:17:47 GMT

When the collection passes 7 years plus 180 days from the DOFD on the OC account, what will then be excluded from your CR and scoring is the collection.

Collections are not "accounts" of yours, and their deletion will not affect your AAoA or oldest account.

You would only loose credit history if the OC deleted their account for some reason. Exclusion of the collection wont do that.

Re: Will this lower my score?

Anonymous — Thu, 16 Feb 2012 12:50:47 GMT

As of right now, however, it doesn't seem to have anything positive listed. ie, my current payments are not showing up, so I'm not sure if there will be anything good to remain after the collection drops off. Here is what it reads like right now if it helps:

UNIVERSITY NAME #*********
ADDRESS 1

ADDRESS 2
PHONE NUMBER
Balance: $ 1 ,6 5 2
Date Updated: 0 7 /1 4 /2 0 0 9
High Balance: $ 1 ,4 3 4
Past Due: > $ 1 ,6 3 1 <
Pa􀁜 Status: >I n C ollec tion<
A ccount T􀁜pe: I ns tallment A c c ount
Responsibilit􀁜: I ndividual A c c ount
Terms: $ 4 0 M onthl􀁜 for 3 9
months
Date Opened: 1 1 /0 6 /2 0 0 2
Date Closed: 1 1 /1 4 /2 0 0 5
Loan T􀁜pe: ST U D E N T L O A N
Remark: C L O SE D
Estimated month and 􀁜ear that this item will be removed: 0 3 /2 0 1 2

Re: Will this lower my score?

llecs — Thu, 16 Feb 2012 14:05:33 GMT

@Anonymous wrote:

This derogatory mark is set to expire in March, and I am worried that my TransUnion score will plummet down below 600 like my Equifax when my total credit history time drops. I think the positive gained from the time is probably much greater than the negative from the "In Collection" status. Do you think my fears are correct?

It's a YMMV situation. You can lose points due to a CO deletion. Most often this is due to impact to AAoA and/or loss of your oldest installment, revolving, etc. DW lost a CapOne CO last year. On one report she gained about 30 points and the other she lost 30. It was her oldest revolving and AAoA dropped by a year.

ETA...your TL above is an OC and factors into your history.

Re: Will this lower my score?

Anonymous — Thu, 16 Feb 2012 14:06:21 GMT

This one is my oldest account of any kind at 9 years, and my next oldest is less than 2, so a pretty huge difference. Also, this account is only reported to TU, and my TU score is 40 points higher than my Equifax.

Re: Will this lower my score?

Anonymous — Thu, 16 Feb 2012 14:35:29 GMT

I was in the exact same situation 2 weeks ago.I had my oldest,closed student loans drop from my EQ report and my score fell 30 points.It was a negative TL and by far my oldest account.The loss of the negative account is more important but i understand the short term pain when the score drops.It hurts but thats just the way it is.You will build positive history with time.