MY credit scores have flatlined....??????

[Anonymous]

Can you explain to me....if you have an item on for 5 years it is not worth you getting it removed.  Because it will count against you.  ie.7 years reporting.  thanks

[Anonymous]

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@rckstrscott wrote:

Remember remember remember...

FICO is designed to show the probability of defaulting on loans/obligation in the next 2 years. Thats the whole point.. it is used as a predictor.. often times, it is mistaken that the higher your score, the higher the probability you will pay on time, but the truth is they are only looking for percentage of people who will default..

So you really need to work of a continually moving sliding 2 years scale.. the further your baddies move from 2 years at present, the better the score.. which is why nothing much changes on your reports, you see small incremental up ticks..

Payments and positives are essentially a wash. You are expected, as a consumer, to make payments..

Once you learn your sweet spot, you can kind of massage your bucket. I stopped goodwilling away my last three collections, because they are 5 years old .. if I got rid of them, as crazy as ths sounds, my FICO may go down.. because I will be put into the bucket with all the Fico High Achievers, and I would pale in comparison with no installment loans and no mortgages.. but in  my current bucket, with a high of 722, I look like Mother Teresa -- once I get my mortgage, I am going to resume goodwilling those collections..

I may have near topped out in my bucket. I still have a public record, and 3 collections showing..

-scott

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Wow, in the 700s with a public record and 3 collections!  I didn't even think that was possible.  That does give me some hope that even if I don't get the last 2 things off my TU report that I will still be able to get to my goal of 700 across the board this year.

[rckstrscott]

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@Anonymous wrote:

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@rckstrscott wrote:

Remember remember remember...

FICO is designed to show the probability of defaulting on loans/obligation in the next 2 years. Thats the whole point.. it is used as a predictor.. often times, it is mistaken that the higher your score, the higher the probability you will pay on time, but the truth is they are only looking for percentage of people who will default..

So you really need to work of a continually moving sliding 2 years scale.. the further your baddies move from 2 years at present, the better the score.. which is why nothing much changes on your reports, you see small incremental up ticks..

Payments and positives are essentially a wash. You are expected, as a consumer, to make payments..

Once you learn your sweet spot, you can kind of massage your bucket. I stopped goodwilling away my last three collections, because they are 5 years old .. if I got rid of them, as crazy as ths sounds, my FICO may go down.. because I will be put into the bucket with all the Fico High Achievers, and I would pale in comparison with no installment loans and no mortgages.. but in  my current bucket, with a high of 722, I look like Mother Teresa -- once I get my mortgage, I am going to resume goodwilling those collections..

I may have near topped out in my bucket. I still have a public record, and 3 collections showing..

-scott

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Wow, in the 700s with a public record and 3 collections!  I didn't even think that was possible.  That does give me some hope that even if I don't get the last 2 things off my TU report that I will still be able to get to my goal of 700 across the board this year.

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Yeah.. I have 5 active positive trade lines, a pretty solid AAoA, a 2 percent util.. and all my baddies are over 5 years old, so I think I am about maxed out

-scott

[rckstrscott]

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@Anonymous wrote:

Can you explain to me....if you have an item on for 5 years it is not worth you getting it removed.  Because it will count against you.  ie.7 years reporting.  thanks

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It really depends on the item... Collection, ect.. yeah.. It is still impacting my credit at 5 years.. obviously it is still reporting. But since it is 5 years old, its impact is minimal in the scoring bucket I am in.. FICO uses different formulas for different credit risks.

If I were to remove all of my bad accounts, I would have a clean slate, but only credit cards, no installments, no mortgage on my credit report. Compared to MOST people wtith good credit, I would be judged as a higher risk because I have no other history aside from credit cards.

Compared to people with bad credit, I am considered a better risk than most.

It isn't a perfect science, and since I have not removed all the items I would never know for sure, however, there are many example of people dropping a little after removing their last bad account if they don't have compensating postive accounts.

There are MORE cases of people getting better scores when they remove all the bad accounts, so I am not saying you shouldn't but in my sitiuation I felt it was in my best interest to hang tight on those accounts.

-scott

[BlueNightStar]

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@rckstrscott wrote:

If I were to remove all of my bad accounts, I would have a clean slate, but only credit cards, no installments, no mortgage on my credit report. Compared to MOST people wtith good credit, I would be judged as a higher risk because I have no other history aside from credit cards.

Compared to people with bad credit, I am considered a better risk than most.

-scott

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 I am in the same position and am doing exactly as you are. I have a collection and 3 60 day lates that are approaching 3 years old. My utilization has gone from 90%+ down to 30%. I believe that my scores will exceed 700 once I get my utilization down to <10%.

I also have no auto loan or mortgage and the highest limit on my CCs is one at $2500. I firmly believe I look much better compared to other people with derogs than I would compared to good credit people. My 60 day late pays are with a local utilitly company that refuses to remove them. Ever. So I am stuck with them for 7 years. I was upset at first but now realize that for a CC enhanced score I probably look fairly decent because I have no CC lates or COs.