Bad Credit Still Showing

Anonymous · ‎05-25-2010

I've been working on my credit scores, credit behavior and practicing better credit management over the last three years. It has truly paid off. However, I feel stuck. Last year I bought my house. What an accomplishment. Best decide ever. At that time I had credit score between 630-655. I thougth now that I have purchased my house, my credit score would go up significantly. It has not. Since Aug 09 to date it has only increased 10 points. Currently 665.

My questions are:

How can I tell when old bad account paid will fall off? How many years will it just stay there?

I had some three collections paid now over three years, when will they go away.

I had a BK discharged 02/04

I don't have any debt with the exception of my mortgage and an auto loan due to be paid off in Dec 2010. I have available credit to include a line of credit with no balance, two major credit cards with no balance. I use one of them but pays it off within the billing cycle. I don't even use my credit cards maybe three or four times a year and pay them off immediately.

Don't know what else to do to increase my score. My goal is to get to the 700 club with all three.

MidnightVoice · ‎05-25-2010

If I remember correctly most baddies go away after 7 to 7.5 years, and a BKL goes away after 10 years.

As they age they probably impact your score less and less. Hower, when my last baddie (a collection) dropped off I got a score boost of 50 points

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid

MarineVietVet · ‎05-25-2010

Hello and welcome to the forums.
@Anonymous wrote:
I've been working on my credit scores, credit behavior and practicing better credit management over the last three years. It has truly paid off. However, I feel stuck. Last year I bought my house. What an accomplishment. Best decide ever. At that time I had credit score between 630-655. I thougth now that I have purchased my house, my credit score would go up significantly. It has not. Since Aug 09 to date it has only increased 10 points. Currently 665. Anytime you have new debt your score will not improve at first; in fact just the opposite is true. You get minor hits to your score for a new inquiry, new credit showing on your reports, and the lowering of your AAoA (Average Age of Accounts). But after a year the account is no longer considered new and you begin to recover some points as you've experienced.

My questions are:
How can I tell when old bad account paid will fall off? How many years will it just stay there? It depends on what the "bad account" is.

Here is how and when derogs drop from you CR, and are thus no longer included in FICO scoring.

Monthly delinquencies under an OC account drop at 7 years from their individual date of delinquency. The date of first delinquency (DOFD) has nothing to do with these drop-off dates. They drop from their own individual dates. So look at each prior OC reported monthly derog date, and simply add 7 years.

If the OC subsequently reports their account as a charge off, that is a totally different and additional post to your CR. Their post as a charge-off will remain in your CR for up to 7.5 years from the DOFD on the OC account, which is the first 30-day delinquency you had on the account, and disregards any later 60/90+ delinquencies that followed. That cannot be reset.

If the OC then refers the account for collection, and a CA posts to your CR, the drop-off date of their collection reporting is the same as that of a CO. It is up to 7.5 years from the same DOFD on the OC account, and the CA cannot reset this date.
I had some three collections paid now over three years, when will they go away.
I had a BK discharged 02/04

I don't have any debt with the exception of my mortgage and an auto loan due to be paid off in Dec 2010. I have available credit to include a line of credit with no balance, two major credit cards with no balance. I use one of them but pays it off within the billing cycle. I don't even use my credit cards maybe three or four times a year and pay them off immediately. FICO likes to see activity on cards but also penalizes for high utilization of revolving credit. Try having only one card show a small balance (1-9% of credit limit) on your monthly statement and then pay in full before the due date to avoid finance charges. On any other cards it's ok to use them to show activity but make sure you have a zero balance on them before the statements post each month.

Don't know what else to do to increase my score. My goal is to get to the 700 club with all three. Always pay on time, keep your uitilzation low. don't apply for credit you don't need, and let everything age. Your score will continue to go up.

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772

You can do the same thing with hard work

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Anonymous · ‎02-10-2012

My situation was very similar. Had a BK discharged in 04. Worked to re-establish new credit using my own money to limit inquiries. Bought my house a little over two years ago. Current score just when over 700 in 12/11.

I agree with MarineVietVet, the seven year period is when most of those baddies will go away forever. Good management of your new credit while wisely keeping usage activity will help to move your score up with som time. Making sure the available create stays way above 80%.

Here's a new one. I had a baddie that was never reported and now seven years and four months later it was reported to my CR, costing me a drop in my score of 36 points. I was not aware of it and thought there was a seven year statue. What a shot out of the dark. Not sure what to do?

MarineVietVet · ‎02-10-2012

@Anonymous wrote:
My situation was very similar. Had a BK discharged in 04. Worked to re-establish new credit using my own money to limit inquiries. Bought my house a little over two years ago. Current score just when over 700 in 12/11.

I agree with MarineVietVet, the seven year period is when most of those baddies will go away forever. Good management of your new credit while wisely keeping usage activity will help to move your score up with som time. Making sure the available create stays way above 80%.

Here's a new one. I had a baddie that was never reported and now seven years and four months later it was reported to my CR, costing me a drop in my score of 36 points. I was not aware of it and thought there was a seven year statue. What a shot out of the dark. Not sure what to do?

What kind of negative is it? If it's a collection or charge off it can report for up to 7.5 years from the DoFD. If this was a late payment it cannot be reported after 7 years from the date of delinquency.

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Anonymous · ‎02-14-2012

I understand that it can report up to 7.5 years. In this case, it was reported at all before now. This is the 7.4 years later that I spoke about. It was a charge off from a checking account. I move away left forwarding address and completed change of address. it just was never reported before at all until jan 12.

Anonymous · ‎02-14-2012

I recently had an OLD collection account from AT&T show up on my Equifax. The same account has been reporting on Experian and Transunion for seven years and three months -- they just started reporting on Equifax. Here it is time for this old tradeline to be excluded from my credit reports and the creditor PAYS the CRAs to report it for a few months??? There is NO MONEY to be collected, I don't understand why they're doing this!

Anonymous · ‎02-14-2012

Very impressive indeed. You have done amazingly. The rest just takes time, as said above 7 years for baddies, 10 years for bk. Really, pat your self on the back for what you have done after what you went though.

What can be done besides time? You could contact the debitors that you have paid and request that they delete collections and contact banks to request that they reduce number of baddies. The bk will stay it's time, and in time the sting won't be as effective. After the bk is gone, your cr will be squeeky clean.