topic Re: Equifax and Chargeoff Question in Rebuilding Your Credit

Equifax and Chargeoff Question

RLH14 — Sat, 24 Dec 2022 12:46:33 GMT

In the past, I had a car lease that resulted in a balance due at the end of the lease from mileage. Bad mistake, but the mileage I couldn't help then. I believe it went to their collection agent. I couldn't afford it then and was offered a settlement that I agreed to and paid.

On my Equifax credit report, it shows as date opened 6/2014, date of last payment and date of last activity 4/2018, date closed 6/2018, and date of last reported update 8/2018, and balance amount 0. Under the comments section, it says pays as agreed, and then additional info says account paid for less than full amount, closed or paid account/zero balance.
When can I expect this to come off my account? It's my only ding. I have had three successful car leases to date (two being with that same lease finance company). This ding has already come off Experian and Transunion. Big difference in Fico 8 score- Experian- 790, Equifax 670

Also, one more question! Approximately how much will applying for a credit card hurt my credit score? And the time frame it bounces back in? I'm going for a new lease or lease buyout in June. Thanks for any answers!

Re: Equifax and Chargeoff Question

sznthescore — Sat, 24 Dec 2022 16:31:39 GMT

So there's no derogatory payment data and the balance owed at the end of the lease is what was considered charged-off and went to collections? Trying to get a little clarity for the experts that will chime in. Typically data falls off credit reports seven years from DOFD. You say the ding has come off the other two reports.... meaning the account all together or derogatory payment data?

Re: Equifax and Chargeoff Question

RLH14 — Sat, 24 Dec 2022 19:54:41 GMT

Thanks for answering! So with Experian and Transunion, the account came off the report entirely around a month or two ago.
No derogatory payment data during the course of the lease. The balance owed for excess mileage became the issue and went to collections. They negotiated a settlement amount with me, I paid it, and I guess they charged off the rest and noted the credit report. Hopefully I'm explaining it ok! 😀

Re: Equifax and Chargeoff Question

OmarGB9 — Sat, 24 Dec 2022 21:43:57 GMT

So it appears it simply came off of TU and EX early for whatever reason, but it technically shouldn't have come off until 4/2025 or so.

As for applying for a CC, nobody can really tell you how your profile will react. Everyone's profile is different.

Re: Equifax and Chargeoff Question

Remedios — Sat, 24 Dec 2022 22:18:10 GMT

@RLH14 was this a two year lease or something else?

The clock started when you failed to make a payment for excessive mileage which would have been due upon lease termination/expiration, so without knowing when your lease termed, there is no way to answer your question about removal.

If your lease ended in 2018 and two CRAs removed it already, my next question would be if you reside in NY state because for NY residents, removal is set at 5 not 7 years

EX and TU typically remove sooner than EQ.

EQ will remove negative within a month or so before it reaches legally mandated time for poofing bad thingies from reports

Re: Equifax and Chargeoff Question

RLH14 — Sat, 24 Dec 2022 23:30:28 GMT

The lease was a three year car lease and it ended in September 2017 and I turned the car in. But then when the bill came for the mileage payment, I failed to make it due to circumstances. After it went to collections, I paid their settlement offer in three payments, with the final payment made on 4/30/18. I am very confused by all of the different dates on the report.

I do live in NY. Do I have to ask Equifax to remove the account at some point, or is it an automatic process? I'm confused by which date they go by. The lease end, the date of my last payment which is posted correctly on the file as 4/18, the date they closed the file and reported it in 6/18 or their last reported update in 8/18. I don't understand why the file wasn't reported closed in 5/18, being the final payment went through in April and why it was reported in August when it was long done.

I am very grateful that it is gone from Transunion and Experian!

Re: Equifax and Chargeoff Question

Remedios — Sun, 25 Dec 2022 01:17:45 GMT

TU will remove up to 6 months early, EX around 3 months early. They do it so they don't run afoul legalities involved with untimely removal.

EQ may remove one month early. If you "ask", you're just asking for disaster, so don't. You're lucky enough for not having it on file for 7 years, a few more months won't do anything.

I would suggest you stop questioning dates, you're convoluting non-events such as when loan reported as closed and settlement date with date account became delinquent, that is the only date important to you since removal is based on it.

Grab a copy of free annual credit report for EQ and see if it has "on file untill" or "removal date".

Re: Equifax and Chargeoff Question

RLH14 — Sun, 25 Dec 2022 03:10:54 GMT

Thanks for all the advice and sharing your knowledge! I already had looked at the report and it had no removal date given, which confused me. I will look forward to it coming off in 2023 and be grateful I'm on the tail end of this vs. the beginning! 😀