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Delinquency date vs charge off date

ReggieCredt
Member

Delinquency date vs charge off date

Hello all,

 

I have a student loan that went delinquent in spring 2014 (last late payment reported). This account went to collections. In December 2016, I "legally paid in full for less than the full balance."- I did this because I was qualifying for mortgage.

 

On Experian, this account is showing as a Charge-Off with a negative mark Dec 2016. On Transunion, It's showing as delinquent as of spring 2014. On Equifax, I disputed and they removed it (I disputed on all bureaus but only EQ removed). As a result my scores are EQ - 788, TU - 713, EX - 704.

 

Two specific questions:

First, will this charge-off mark for Dec 2016 reset the 7-year date of automatic removal (just because I paid the balance)? Also, this is only indicated as a charge-off on Experian.

Second, should I be able to remove this charge-off by disputing (which didn't work by doing it through the bureau's website)? Why did it re-register as a charge-off years after delinquency just by paying it?

 

Super thankful in advance for any help with this.

Message 1 of 10
9 REPLIES 9
dragontears
Valued Contributor

Re: Delinquency date vs charge off date


@ReggieCredt wrote:

Hello all,

 

I have a student loan that went delinquent in spring 2014 (last late payment reported). This account went to collections. In December 2016, I "legally paid in full for less than the full balance."- I did this because I was qualifying for mortgage.

 

On Experian, this account is showing as a Charge-Off with a negative mark Dec 2016. On Transunion, It's showing as delinquent as of spring 2014. On Equifax, I disputed and they removed it (I disputed on all bureaus but only EQ removed). As a result my scores are EQ - 788, TU - 713, EX - 704.

 

Two specific questions:

First, will this charge-off mark for Dec 2016 reset the 7-year date of automatic removal (just because I paid the balance)? Also, this is only indicated as a charge-off on Experian.

Second, should I be able to remove this charge-off by disputing (which didn't work by doing it through the bureau's website)? Why did it re-register as a charge-off years after delinquency just by paying it?

 

Super thankful in advance for any help with this.


1. No, paying it in 2016 didn't reset the DOFD. 

2. You are unlikely to remove the charge off because it is accurate. If you continue to dispute this account the lender can add lates/CO notation for every month between when you quit paying and when you settled. In addition, every time this account updates it will depress your score as the scoring algorithm "sees" it as a fresh derogatory account. 

 

If your DOFD was spring of 2014 the account will automatically be removed next spring as it will reach the 7 year exclusion 

 

Scores hover around 800
Haven't been AZEO in over a year
Rome was not built in a day, neither is a good credit profile
Message 2 of 10
ReggieCredt
Member

Re: Delinquency date vs charge off date

Thank you for the reply! I appreciate the precise answers.

 

I just ran my annualcreditreport.com (after I posted this) - when viewing this Experian report, it says this account we're talking about is "On Record Until - July 2020." Do you know this date to be accurate? Your guestimate of Spring 2021 is the same as mine, but if they're telling me next month and it's accurate, that would be even better!

 

My mortgage score on Equifax which allowed me to remove this account is 764. On Experian and Transunion where this account exists it's 704/712 accordingly. Having my median score as high as the Equifax would certainly help.

Message 3 of 10
dragontears
Valued Contributor

Re: Delinquency date vs charge off date

The "on record until xxx" or "removal date of xxx" terminology directly from a "annual" credit report has always been accurate from what I have observed. Looks like you were off in your recollection of the DOFD and it will be removed much earlier than anticipated, congratulations! 

Because of the pandemic you can get a free "annual" report every week until the end of the year (I think) so you can get a report weekly until it is gone.

Scores hover around 800
Haven't been AZEO in over a year
Rome was not built in a day, neither is a good credit profile
Message 4 of 10
Birdman7
Super Contributor

Re: Delinquency date vs charge off date

my understanding is the following : once the account is paid the TPOD (total period of delinquency) is frozen and any subsequent updates will not cause score loss. I believe score loss only occurs when the account has not been paid.

Score loss is based on the TPOD, which runs from the DOFD until when it is paid.

1. If it’s not paid but updated every month, TPOD continues to increase and score is suppressed.

2. If it’s not paid and not updated every month, TPOD is frozen and score is not continually suppressed.

3. Once it’s paid, TPOD is updated (causing score ding), TPOD is frozen and then no further score loss occurs.

You are not penalized for charge off status, that is an accounting measure. You are penalized by the total period the account was delinquent.

You are not penalized from the payment grid and what it shows. That’s for visual convenience.

Message 5 of 10
ReggieCredt
Member

Re: Delinquency date vs charge off date

Thanks all for the replies!

 

Important update - The DOFD is confirmed. Despite my having paid the debt a few years later and showing a new date of delinquency, my charge-off's date of expected removal was based on the DOFD.

 

Additional note - the expected dates of removal were EX - July and TU - September. I disputed both over the phone on Friday as obsolete and they were removed by Sunday. 77 & 80 point jumps, respectively.

 

New scores - EQ 781 / EX 782 / TU 785. It's been a long journey but 800 is within reach!

 

Message 7 of 10
Birdman7
Super Contributor

Re: Delinquency date vs charge off date


@ReggieCredt wrote:

Thanks all for the replies!

 

Important update - The DOFD is confirmed. Despite my having paid the debt a few years later and showing a new date of delinquency, my charge-off's date of expected removal was based on the DOFD.

 

Additional note - the expected dates of removal were EX - July and TU - September. I disputed both over the phone on Friday as obsolete and they were removed by Sunday. 77 & 80 point jumps, respectively.

 

New scores - EQ 781 / EX 782 / TU 785. It's been a long journey but 800 is within reach!

 


@ReggieCredt Yes removal date is always calculated from DOFD. Congratulations on the awesome score jumps! That's wonderful! Would you mind sharing your profile stats for DPs?

Message 8 of 10
ReggieCredt
Member

Re: Delinquency date vs charge off date

I don't mind at all, but, could you be more specific - How/what would you like me to share? Is DP data point?



 

Message 9 of 10
Birdman7
Super Contributor

Re: Delinquency date vs charge off date

I assume your profile is now clean, so, how many accounts open and closed on your CR? Age of oldest account? Age of youngest revolver? Any open or closed loans on CR?

Yes dp is datapoint. Thanks for your contribution!
Message 10 of 10
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