topic Re: Charge off reporting monthly!? in Rebuilding Your Credit

Charge off reporting monthly!?

agforfree5 — Sat, 27 Oct 2012 08:48:32 GMT

I'm working on fixing my brother'a credit and his report shows a loan that is with the OC, charged-off for the first time in 2010 and has been reporting as a CO every month every since, up to last month. The debt is still with them and not a CA. I have been reading around for a couple of hours now and I have reached nowhere. So, I have a few questions:

1) Does the monthly reporting of he CO affect/lower my FICO each month as well? Possibly because the DOLA is being updated every month with the CO and balance, making it appear as a new debt ?

2) Is it legal for the OC to even report the CO every month until the 7 year is up ? I thought they can only the report the CO once?

3) Lastly, if the current monthly reporting is hurting his score each month, is a Pfd or PIf (to just stop the reporting ) our best bet?

My apologies for any SP errors as I am typing this on my phone.

Re: Charge off reporting monthly!?

LIGHTNIN — Sat, 27 Oct 2012 09:37:32 GMT

Monthly reporting lates after a CO is a score killer, big time.

Yes it's legal to report lates after CO.The OC is only reporting the CO once, it's the reporting lates that are hurting.

Yes I believe a PFD would be best or something with the lates removed.

2 very important dates to know.....The DoFD and your states SOL.

What type of loan is this?

Does you brother have the funds to pay the balance?

Re: Charge off reporting monthly!?

agforfree5 — Sat, 27 Oct 2012 09:52:41 GMT

Thanks for the reply Lightnin.
You mentioned that the OC is only reporting the CO once. But in fact, they are reporting the CO for every month after the first one as well. It is not showing one CO and other lates after that. It is showing all the months up to now as CO. I hope that sort of makes sense.

It is a student loan and he does not have the all the funds to pay in full but he has about 80% of it ready.

I have paid attention to the DOFD and from what I understand, nothing can change that date.

So if they don't agree for Pfd in any form, should we just try to pay it to off so they stop reporting the CO every month?

Re: Charge off reporting monthly!?

LIGHTNIN — Sat, 27 Oct 2012 10:27:14 GMT

In some formats of CR's it shows in the history one CO after another, but it's the reporting of the lates that are hurting.

Oh it's a student loan, that's in a group all of it's own. I can move it to the student loan board if you wish.

But be sure to let us know, if it's a federal or private loan.

Re: Charge off reporting monthly!?

agforfree5 — Sat, 27 Oct 2012 15:45:33 GMT

Re: Charge off reporting monthly!?

agforfree5 — Sat, 27 Oct 2012 15:48:13 GMT

It is a private loan. So would a pfd / paid-CO be our best option in order to have them stop reporting each month?

Re: Charge off reporting monthly!?

Anonymous — Sat, 27 Oct 2012 17:16:38 GMT

@LIGHTNIN wrote:
Monthly reporting lates after a CO is a score killer, big time.
Yes it's legal to report lates after CO.The OC is only reporting the CO once, it's the reporting lates that are hurting.
Yes I believe a PFD would be best or something with the lates removed.

2 very important dates to know.....The DoFD and your states SOL.

What type of loan is this?
Does you brother have the funds to pay the balance?

Do you know this for sure? Cuz I am inclined to disagree with you.

FICO looks at a CO/Collection the same as far as age goes. The older the CO/Collection is, the less it hurts your score regardless of the DoLA or Last Reported Date.

Personally, I think that the CA only thinks that it is harmful to a credit score and thats why they do it.

IMO, the joke's on them. Cuz it doesn't hurt a score any more or any less and yet the CA has to pay everytime they "update" the monthly reporting. Joke is on them.

Re: Charge off reporting monthly!?

agforfree5 — Sat, 27 Oct 2012 17:46:29 GMT

Re: Charge off reporting monthly!?

agforfree5 — Sat, 27 Oct 2012 17:49:12 GMT

Hmm ok now I'm curious to know which one of these two is correct. I can't seem to fInd a confirmed answer on either, even by searching everywhere online. Anyone ?

Re: Charge off reporting monthly!?

agforfree5 — Sat, 27 Oct 2012 18:46:10 GMT

Bump :-)

Re: Charge off reporting monthly!?

Shogun — Sat, 27 Oct 2012 21:48:07 GMT

There was no mention of a CA on here. Yes the OC can update CO, yes they can post lates if they still own the debt. If it's sold, it must be marked as $0 owed and then CO only. But no mention of a CA so maybe the CA still has the debt. As far as timing, I have seen many that have updated the status to recent that does affect the scores, so the more recent, the worse that affect is.

Re: Charge off reporting monthly!?

Anonymous — Sat, 27 Oct 2012 23:41:13 GMT

@Shogun wrote:
There was no mention of a CA on here. Yes the OC can update CO, yes they can post lates if they still own the debt. If it's sold, it must be marked as $0 owed and then CO only. But no mention of a CA so maybe the CA still has the debt. As far as timing, I have seen many that have updated the status to recent that does affect the scores, so the more recent, the worse that affect is.

My understanding of OPs question is that the OC (i typed CA oops) is constantly updating the report as a CO/Collection (or sometimes we know this as KD).

This, IMO, does NOT affect your scores. Reason: If it was a CO/collection 5 years ago and every month for 60 months the OC has updated the account as still a CO/collection (or KD) and has changed the Last Reported Date to the current month, then that has no bearing on scores.

I maintain that the reason this happens is that OCs (or CA, or whomever puts this into practice) think that it affects scores. They may be trying to do this because they are NOT allowed to REAGE accounts. Reaging affects scores. Updating a CO/colletion account to reflect that it is still a CO/collection account does nothing.

My points are made whether or not I understand Ops original question lol.

Re: Charge off reporting monthly!?

LIGHTNIN — Sun, 28 Oct 2012 00:47:54 GMT

@Anonymous wrote:
@LIGHTNIN wrote:
Monthly reporting lates after a CO is a score killer, big time.
Yes it's legal to report lates after CO.The OC is only reporting the CO once, it's the reporting lates that are hurting.
Yes I believe a PFD would be best or something with the lates removed.

2 very important dates to know.....The DoFD and your states SOL.

What type of loan is this?
Does you brother have the funds to pay the balance?

Do you know this for sure? Cuz I am inclined to disagree with you.

FICO looks at a CO/Collection the same as far as age goes. The older the CO/Collection is, the less it hurts your score regardless of the DoLA or Last Reported Date.

Personally, I think that the CA only thinks that it is harmful to a credit score and thats why they do it.

IMO, the joke's on them. Cuz it doesn't hurt a score any more or any less and yet the CA has to pay everytime they "update" the monthly reporting. Joke is on them.

Hi ccnewcc,

I dont mind you disagreeing with me. That's what we all are here for right, to understand how fico scores.

Let me tell you what happened to me and you tell me what you think OK?

I had a CO still reporting for over 8 years with 48 lates. After I brought this to EQ attention, they removed it. My score jumped 40 points. My thinking is FICO knew it was over the 7.5 years reporting time due to the DoFD and the effects of the CO should've been ~~exausted~~ exhausted by this time.

The 48 120day lates was the only thing left to score on. Maybe my thinking is wrong, I just dont know. That's why I read and study what others say about their CR's. If anyone else cares to jump in, please do so because I would like to know also.

ETA..forgot to spell check lol

Re: Charge off reporting monthly!?

Anonymous — Sun, 28 Oct 2012 01:28:23 GMT

@LIGHTNIN wrote:
@Anonymous wrote:
@LIGHTNIN wrote:
Monthly reporting lates after a CO is a score killer, big time.
Yes it's legal to report lates after CO.The OC is only reporting the CO once, it's the reporting lates that are hurting.
Yes I believe a PFD would be best or something with the lates removed.

2 very important dates to know.....The DoFD and your states SOL.

What type of loan is this?
Does you brother have the funds to pay the balance?

Do you know this for sure? Cuz I am inclined to disagree with you.

FICO looks at a CO/Collection the same as far as age goes. The older the CO/Collection is, the less it hurts your score regardless of the DoLA or Last Reported Date.

Personally, I think that the CA only thinks that it is harmful to a credit score and thats why they do it.

IMO, the joke's on them. Cuz it doesn't hurt a score any more or any less and yet the CA has to pay everytime they "update" the monthly reporting. Joke is on them.
Hi ccnewcc,
I dont mind you disagreeing with me. That's what we all are here for right, to understand how fico scores.
Let me tell you what happened to me and you tell me what you think OK?

I had a CO still reporting for over 8 years with 48 lates. After I brought this to EQ attention, they removed it. My score jumped 40 points. My thinking is FICO knew it was over the 7.5 years reporting time due to the DoFD and the effects of the CO should've been ~~exausted~~ exhausted by this time.
The 48 120day lates was the only thing left to score on. Maybe my thinking is wrong, I just dont know. That's why I read and study what others say about their CR's. If anyone else cares to jump in, please do so because I would like to know also.

ETA..forgot to spell check lol

Hmm thats interesting. Idk.

I thought that FICO was calculated based on what is in your reports without discrimination. So if an account is still on your report when it is passed the exculsion period (whether the account is a negative or a postitive TL), FICO is including that account in its calculation.

From what i understand, CO will hurt less over time in FICOs calculation. But that damage to the FICO score never reaches a zero damage effect until it is gone from the reports.

Could the 40 point increase not just be the result of the CO being removed?

Btw, I could be wrong. I prolly know less about FICO than you and my knowledge is also based on assumptions.

Re: Charge off reporting monthly!?

Shogun — Sun, 28 Oct 2012 01:38:24 GMT

While I agree that it shouldn't make a difference when it's updated as far as scoring goes, I've just seen that recent updating has affected it. No one really knows the algorithm that's used, or how it's calculated. I've seen old COs that are paid recent get a bump up, and I've seen them get a bump down. I have no idea why.