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People you can hire to understand/deal with bureaus? (120pt score drop w/ Affirm, all paid on time)

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TyrannicalDuncery
Regular Contributor

People you can hire to understand/deal with bureaus? (120pt score drop w/ Affirm, all paid on time)

Are there (non-scammer) people who could help my sister understand and deal with Experian? I think she's looking for someone to
  1. explain Experian and Experian Boost as it applied to her situation and
  2. potentially dispute or resolve something with Experian.

 

Background:

  • My sister's Experian credit score just tanked from ~820 to ~700 over 3 months, seemingly due to small loans with Affirma and Klarna which she has been paying on time. But that's just a guess. We don't really know what's going on and she is freaking out.
  • I assume more details would help but I don't know the details. I do know that she has paid all her (tiny) loans and credit cards on time, but Experian says that she has only paid a few on time. I don't know whether that's a timing issue or waht.
  • This is probably all stuff we could do ourselves, but we don't have infinite time and my sister is pretty stressed out, looking for some help.
19 REPLIES 19
GatoradeZeroGuy
Valued Contributor

Re: People you can hire to understand/deal with bureaus?


@TyrannicalDuncery wrote:
Are there (non-scammer) people who could help my sister understand and deal with Experian? I think she's looking for someone to
  1. explain Experian and Experian Boost as it applied to her situation and
  2. potentially dispute or resolve something with Experian.

 

Background:

  • My sister's Experian credit score just tanked from ~820 to ~700 over 3 months, seemingly due to small loans with Affirma and Klarna which she has been paying on time. But that's just a guess. We don't really know what's going on and she is freaking out.
  • I assume more details would help but I don't know the details. I do know that she has paid all her (tiny) loans and credit cards on time, but Experian says that she has only paid a few on time. I don't know whether that's a timing issue or waht.
  • This is probably all stuff we could do ourselves, but we don't have infinite time and my sister is pretty stressed out, looking for some help.

if the report is pulled from: https://www.annualcreditreport.com/ and she tells us what is on it, we can get a better understanding of why there might have been a score drop 

 

if any of the new loans are reporting as late, that's something that can be corrected, assuming it's false, but without knowing what is reporting and how it's reporting, we can't know.

 

Affirma and Klarna loans are terrible for credit scores, as they lower the average age of accounts and they have a special code (CFA) which makes you lose 5-15 credit score points if you have one or more of these types of loans on your credit report 

 

It is possible that if somebody had a very thin file without a lot of accounts, her average age of accounts was slashed several years which may account for the decreased score. 

 

The important part is making sure these loans aren't being marked as 30 days or more late, if so, she needs to pay them immediately. If they are being marked late but they aren't late, she needs to contact the companies to correct their reporting. 

 

If they won't correct their reporting, you can file a dispute with Experian with proof that the loans are paid on time and Experian should correct it.

Starting FICO 8:

Current FICO 8:

1/6, 5/12, 12/24




Message 2 of 20
TyrannicalDuncery
Regular Contributor

Re: People you can hire to understand/deal with bureaus?

Thanks! She just paid them all off. But when it comes to age of credit, she is ***** forever; is that right? Also, is it possible that here Experian is screwed up but her other scores are not?

 

I'll get back to you if she's okay sharing credit report info. I do know her average credit age is a little over 3 years, oldest account is 7 years, she has 3 credit cards, Experian says she has 1 "installment loan" and 3 "revolving accounts" (probably all these tiny scumbag loans).

 

[begin vent, nothing useful beyond this point]

And I just gotta ask: shouldn't this stuff be regulated? Like shouldn't they have to put giant flashing lights warning about this?

Message 3 of 20
GatoradeZeroGuy
Valued Contributor

Re: People you can hire to understand/deal with bureaus?


@TyrannicalDuncery wrote:

revolvers are typically credit cards

 

whereas installment loans are loans like student loans, personal loans, car loans and possibly these Klarna loans (i'm not sure how they report them)

 

over time, more accounts prop up the age of accounts, so it's 'bad' for credit now and good for credit later.

 

Imagine a credit profile with 1 account that's 9 years old

 

9 years old

 

now you add a new account

 

9 years old

1 month old 

 

now the average is 4.5 years, when before it was 9 years. 

 

But as you add more accounts, the relative impact to the average age of accounts lessens.

 

9 years old

1 month old

1 month old

 

average is 3 years now 

 

because you have more accounts, you can add new accounts without harming the age of your credit as much as if you only had one account

 

Assuming these loans are being reported as paid on time, as time passes, they will only slightly harm her credit profile as they are labeled as CFA's, but it's not a meaningfully harmful impact 

 

I would avoid those types of loans in the future, nothing you need to buy from them is worth having them on your credit report, and if you have long standing credit cards, just use those instead or get a 0% intro apr credit card

 

Assuming everything is being labeled as paid on time which is the really important part, I wouldn't worry about the score too much. It should bounce back over time close to where it was before.

 

I don't personally understand why they don't simply say they won't report unless you are late, I would love to take advantage of their 0% apr offers, but I can't without them reporting the loans, even if they're always paid on time

Starting FICO 8:

Current FICO 8:

1/6, 5/12, 12/24




Message 4 of 20
TyrannicalDuncery
Regular Contributor

Re: People you can hire to understand/deal with bureaus?

Thanks @GatoradeZeroGuy! That's above and beyond, I really appreciate the time.

 

I don't think anyone truly knows the inner workings of the scores, but based on the bureau sites and what you said I think I have learned three things. Are these right?

  1. I think that it is best to think about the "straight average" age of accounts, even if like one of them is $1 and one of them is $10,000.
  2. I think that these stinkin' CFA accounts will continue to affect her credit age even once they are fully paid off.
  3. Probably the biggest negative impact to her credit is due to the accounts that are (allegedly) not paid as agreed.

I still owe y'all more detailed info on her credit report.

Message 5 of 20
SouthJamaica
Mega Contributor

Re: People you can hire to understand/deal with bureaus?


@TyrannicalDuncery wrote:

Thanks! She just paid them all off. But when it comes to age of credit, she is f****ed forever; is that right? Also, is it possible that here Experian is screwed up but her other scores are not?

 

I'll get back to you if she's okay sharing credit report info. I do know her average credit age is a little over 3 years, oldest account is 7 years, she has 3 credit cards, Experian says she has 1 "installment loan" and 3 "revolving accounts" (probably all these tiny scumbag loans).

 

[begin vent, nothing useful beyond this point]

And I just gotta ask: shouldn't this sh*t be regulated? Like shouldn't they have to put giant flashing lights warning about this?


1. I doubt there's anyone you can trust reliably to help her deal with it. She's better off crowd sourcing her questions here.

2. Next time before she makes a move like taking out jerky loans like that she should check with us first. There was no reason in the world for her to go into things like that; she had good scores and could have gotten quality loans if she wanted.

3. As to shouldn't these things be regulated, of course they should, but thanks to prevailing mentality government agencies are almost all hamstrung by lack of support.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 6 of 20
TyrannicalDuncery
Regular Contributor

Re: People you can hire to understand/deal with bureaus?

Thank you @SouthJamaica! Yeah, it sucks. She worked so hard to get her score up. Smiley Frustrated It sounds like that -5 to -15 will follow her to her grave.

 

Is it possible that her non-Experian scores are unaffected?

Message 7 of 20
SouthJamaica
Mega Contributor

Re: People you can hire to understand/deal with bureaus?


@TyrannicalDuncery wrote:

Thank you @SouthJamaica! Yeah, it sucks. She worked so hard to get her score up. Smiley Frustrated It sounds like that -5 to -15 will follow her to her grave.

 

Is it possible that her non-Experian scores are unaffected?


1. Not to her grave. FICO scores have the saving grace that time heals all wounds.

2. Yeah it's possible other scores won't be similarly affected.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 8 of 20
TyrannicalDuncery
Regular Contributor

Re: People you can hire to understand/deal with bureaus?

Thanks @SouthJamaica, you rule. I keep asking questions but of course you've been very generous already. No pressure.

 

I've heard that "negative" information other than bankruptcy only stays on your report for up to 7 years.

Are you referring to something like that? (And does the CFA flag count as "negative"?)

Message 9 of 20
GatoradeZeroGuy
Valued Contributor

Re: People you can hire to understand/deal with bureaus?


@TyrannicalDuncery wrote:

Thanks @GatoradeZeroGuy! That's above and beyond, I really appreciate the time.

 

I don't think anyone truly knows the inner workings of the scores, but based on the bureau sites and what you said I think I have learned three things. Are these right?

  1. I think that it is best to think about the "straight average" age of accounts, even if like one of them is $1 and one of them is $10,000. Yes, that's true
  2. I think that these stinkin' CFA accounts will continue to affect her credit age even once they are fully paid offYes, but the impact is small, I wouldn't worry too much about it or go scorched earth or anything about it 

    it's not negative or derogatory in the sense that going on a payment deferment or actually being late would be, but for clean profiles, FICO is going to look at the existence of a CFA is something not optimal and score harming and it will likely point that out in credit score reason codes. 
  3. Probably the biggest negative impact to her credit is due to the accounts that are (allegedly) not paid as agreed. this is what you need to worry about, confirm the account is being reported accurately as paid as agreed. pay off those loans and consider other options in the future if you want loans.

I still owe y'all more detailed info on her credit report.


what the score dropping doesn't take away is the positive credit history you have and the length of time of that positive credit history 

 

if she has 7 years of positive revolving history, that doesn't suddenly go away or mean less underwriting wise just because you have some affirm loans on the profile now 

 

 

Starting FICO 8:

Current FICO 8:

1/6, 5/12, 12/24




Message 10 of 20
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