Can I get into mid 700's with 5 yr old CO?

[jeannieavc]

Does anybody know if I can get into the mid 700's with 5 yr old CO?  It is my last derogatory item.

[fused]

Yes, it is possible. Can you give us more detail? Is the CO paid or unpaid? 

Also, how high is your revolving CC util?

[jeannieavc]

 Thanks for the quick response.  Util this month is 4% (just brought it down) and CO says paid after collection because it went to a collection agency.  But I got the CA removed through disputes without paying.  So it is listed as $0 balance charge off account sold (on EQ) and paid after collection (on EX) . Next month will be 5 yr birthday.  Do you think I will see a little increase or none?

[fused]

Its very hard to say if you'll see a boost in your scores once the CO hits 5 years. YMMV! Is your util "reporting" 4%?

[jeannieavc]

yes it is already showing at 4%.  I have a small installment loan that will go from 40% util to 30 next month.  Hope i see a little increase.  Now that my util is down and I have no more collections I am trying to find ways to gain some points.

[laz98]

it would be neat if you can get there.  i have a 6 year old chargeoff i can't wait to get rid of.

[RobertEG]

A lot depends on what else is still in your CR.

You say that other derogs are gone, but I am not sure that is the case for the OC account that led to the CO.  It might not be just one derog.

A CO does not remove prior monthly derogs on the OC account.

I suggest you take a close look at all that is reported in this OC account.

Let me explain with an example.  They did a CO that you say was five years ago. So assume, for purposes of my example, that the CO was done in 8/2005.

I dont know what the OC has reported to your CR, so I will give you a worst-case scenario to make my point, and hopefull guide you to other derogs that may still be having a major impact on your score. Whether pushing the mid-700's is reasonable depends on how close, or far away, you are from this worst-case OC account scenario:

The OC did a charge-off 5 years ago.  Thus, assume their date of charge-off was thus 8/2005.

But there were most probably prior reporting by the OC before they charged-off the bad debt.   That is what you need to know!

Assume a reported  120-day late in 7/2005.   That would remain until 7/2012.   Major derog.

Assume a reported  90-day late in 6/2005.     That would remain until 6/2012.  Major derog.

Assume a reported 60-day late in 5/2005.     That would remain until 5/2012.  Major derog

Assume a reported 30-day late in 4/2005      That would remain until 4/2012.  Minor derog

Assume that the 30-day late in 4/2005 is also the DOFD on the OC account.  The CO would thus remain until 10/2012.   Major derog.

I am NOT saying those dates are what is actually reported in your CR. But if the OC did report  prior derogs before they did the charge off,, then you may stll have multiple major derogs still in your CR until early or mid-2012.  

That is why it is difficult to predict any FICO score gains at this time.

Can you fill us in?

[RobertEG]

After re-reading this thread, I have another question

You state that the CO says:

       "paid after collection because it went to a collection agency.  But I got the CA removed through disputes without paying.  So it is listed as $0 balance

        charge off account sold (on EQ) and paid after collection (on EX) . Next month will be 5 yr birthday"

Forgive me, but can you provide a little clarification of this?  It doesnt look right to me.

This is the scenario that I get from your post.  The account was charged-off by the OC in approx 8/2005.  The OC then sold it to a debt collector, and the OC then reported $0 owed to them. The CO remains in your CR.  The debt collector then posted a CA to your CR.

The CA then deleted their prior reporting of the CA.  So no one is now reporting the debt to the CRA.

Is all of that correct?

If so, my best read is that the debt remains unpaid.  Reporting by the OC of $0 on the OC account does not mean the debt was paid... just that they no longer own it.

Deletion by the first debt collection does not mean the debtt is satisfied, only that their collection activities are terminated.  It may have come from their decision to just be done with the debt, and to sell of the debt to another debt collector who has not yet posted to your CR

It also appears that your DOFD on the OC acccont was less than 7 years go.  Probably around 5 1/2 years go.  So new reporting by another debt collectior could be made, and posted to your CR up to some time in early to mid 2012.  So, you get another CA reporting, with a drop off date that would  then expire at the same time of the OC, namely in the fall of 2012.

Forgive all of my questions, but there are a lot of issues surrounding this debt that remain unclear.

I dont see it as a simple matter that the CO was done 5 years ago. 

.

[jeannieavc]

Thanks for your insight robertEG.  I learn something new here everyday.  You have it exactly right and I never thought of the point that another debt collector can pick this debt up.  So as you are saying, it is reporting a zero balance but it is not necessarily "paid" because it was sold to a CA.  And the debt is not reporting anywhere on my CR because I got the CA (NCO) deleted. DOFD was 8/2005 and date of charge off is 1/2006 for $773.  Now, just last night in reviewing my CR's, on EQ and TU these dates are correct, but on EX it is reporting date of last past due 3/2008. This was the date it was sent to CA.  Is that reporting correctly?  I thought date of last past due would be around the time of charge off.  Why would EX have this different? Is cap 1 trying to re-age?  Plus I'm dreaming if I think that I can dispute this charge off and have it deleted right? its Capital One.  Thank you so much for the information.

Also you are correct.  EQ shows Aug/05-30 day late, Sept/05-60 day, Oct/05-90 day, Nov/05-120, Dec/05-120, Jan/06- CO

[Anonymous]

I don't know for sure how CO compares with BK's.  Someone who's an expert in the bucket category will probably have some good insight.  That being said, my BK is 5 years old, my credit history other than that is clean, 5 yrs AAofA, 20 year oldest.  My FICO's (CU pull on EXP) are in the 720's and have been for over a year.

And, of course, if you have two derogs and one drops off, there will not be a significant score change - it'd still be in the "dirty" bucket.

Hope that's somewhat helpful.