Hi all, starting a second thread here.
What's the effect of CO, 30, 60, 90, 120 day late over time (before 7yrs)?
Also, how does the quantity of negative items factor into the score?
I have multiple COs and 30,60,90 day lates from 2020. I want to buy a house in 2024. How will these affect my score by that time? Should I just wait til 2027?
FYI, I have another thread that breaks down the details.
Starting Score: 611
If the accounts with the 30/60/90/120 day lates led to a CO, then the CO ultimately supersedes everything, and the account is considered a severe derogatory. COs hurt the entire 7 years. In 2024, the CO will still be affecting your scores greatly, so yes, if you could wait until 2027, then the CO accounts would age off and your scores would see huge gains (assuming no more new derogatories occur between now and then).
Thanks @OmarGB9,
Do you know the impact of COs over time? I have 7 COs all within a 3 month period which is a clear indicator of a life event - of which I won't go into details here. Whats the impact of multiple COs around the same time? In 2024 when they are 4 years old, can my mortgage scores be at least above 650?
I ask the question because I'm wondering if it makes any sense to pursue removing any COs. For instance, if I remove 3 will that make a difference? Is it worth it?
Due to the fact that I might have twins on the way, I'm forced to strategize a plan for the next 5 years, which includes me buying a new home in 2 years. It would be difficult to wait the additional 3 years, but I do want to be realistic about expectations. I'm confident that I will be able to get a mortgage in 2024 (I only have 1 30day late on my current mortgage).
Any advice would be helpful.
@Peterparkyr wrote:Thanks @OmarGB9,
Do you know the impact of COs over time? I have 7 COs all within a 3 month period which is a clear indicator of a life event - of which I won't go into details here. Whats the impact of multiple COs around the same time? In 2024 when they are 4 years old, can my mortgage scores be at least above 650?
I ask the question because I'm wondering if it makes any sense to pursue removing any COs. For instance, if I remove 3 will that make a difference? Is it worth it?
Due to the fact that I might have twins on the way, I'm forced to strategize a plan for the next 5 years, which includes me buying a new home in 2 years. It would be difficult to wait the additional 3 years, but I do want to be realistic about expectations. I'm confident that I will be able to get a mortgage in 2024 (I only have 1 30day late on my current mortgage).
Any advice would be helpful.
I'm more or less you 4 years in the future. I too had 7 (actually, it may have been 8) COs 4 years back. I just looked at a report from a couple of days ago, and at least on TU, I do have a 650 mortgage score. My EQ is only 625, but I think it was closer to 650 a few weeks back before some of my utilization/high balances posted.
Anyway to answer your question, as I mentioned before, COs sadly hurt all 7 years. The effects may slightly lessen over time, but not by much. Still, that doesn't mean you can't rebuild and continue to increase scores. My scores (at least my FICO 8s) are closing in on 700 across all bureaus, so yes, there is hope of rebuilding and reaching at least 650 in mortgage scores. Everyone's profile is different of course, but there's a good chance, IMO.
If you could get COs removed altogether, that would be amazing, but realistically, it's probably not going to happen (it doesn't mean you can't still try!) with OCs.
Thanks @OmarGB9,
That's very encouraging - or at least making it clear to me what to expect in the next 2 years. Seems that as long as I keep things clean for the next two years I'll be in a decent place to get to around 650. I'll buy the house at that time, and refi 3 years later when the COs age off.
😊