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FCRA 605(a) mandates exclusion of adverse items of information at various times, dependent upon the type of adverse information being considered.
Monthly delinquencies are required to become excluded no later than 7 years from date of delinquency, and charge-offs no later than 7 years plus 180 days from date of initital delinquency, but the CRAs usually exclude at approx 7 years.
If a charge-off occured or was reported almost 7 years ago, then the reported DOFD is likely approx 4 months prior, meaning it has likely reached its exclusion date.
While removal of the derogs will often result in a net score increase, that is not always the case, as other information could have changed that had negative scoring impact, such as update of other accounts or collections that remain unpaid.
No, it's not. And if the company updated it intentionally, it's illegal. Dispute it through the bureaus.
@thornback it sounded to me like it was charged off and about to fall off, but all of a sudden the last 2 years are showing as on time payments.
@Brian_Earl_Spilner wrote:@thornback it sounded to me like it was charged off and about to fall off, but all of a sudden the last 2 years are showing as on time payments.
Yes, that's why I asked for clarification of what OP meant by "current". It was unclear to me (since they mentioned a score drop) whether they meant current as in paid on time or current as in recent delinquency.
@Anonymous wrote:
That's exactly what's happening @throneback and then it dropped my score another 38 points
Then yea, it's unfortunate (sorry!) yet common. In my opinion, they do this as a last ditch effort to get you to pay. This is why I always tell people to pay their chargeoffs if possible because, even if they don't update for years, they can do so whenever they please and totally screw your progress when you least expect it. Paying the debt prevents that...
Although they updated the payment history to make it appear "new", the DOFD remains the same and it is illegal for them to alter that so the account will still fall off as originally scheduled. If you are within 6 months of the fall off date, you should start requesting early exclusions. Transunion will delete 6 months early; Experian up to 3 months early; and Equifax 1 month early.
'Photos' button in your editor: