Recurring 90 days late from COs

[Anonymous]

I would really appreciate any advice  from this group of experts!

I have 4 total COs from 2016. Two Jpmbc, one Discover, and one Td Bank.

Jpmbc both cards last negative was 90 days late on 11/2016. The account is listed as 'closed'. No collections. 

Discover and Td Bank last negative is 90 days late on 02/2021..The account is listed as 'open'. No collections. 

Are the recurring late payments from Discover and Td Bank hurting my score in addition to the CO? Will all 4 COs + 90 days late drop off around 2023?

Thanks to a great post from @Anonymous I understand the balance on all 4 of these accounts count toward my FICO Aggregate Utilization which is stuck at 84%. I believe getting added as an AU with enough CL would fix the Aggregate but not Indivigual Utilization from maxing out those cards. 

Any advice is greatly appreciated mates!

[OmarGB9]

Yes and yes. COs hurt a lot, especially if they're updating regularly. And if the account is CO'd and still has an unpaid balance, the utilization hit also affects you substantially as you already know.

[Anonymous]

Your aggregate is 84%. To be in good shape, you should be under 29%, and the lower the better. Unless your outstanding balances and CLs are low, you're talking about having access to big AU lines. For example if you owe $8400 and have total lines of $10,000, you'd need to add $20,000 in zero-balance AU accounts to bring that down to 28%. The issue is that most lenders can see that you have high usage on your primary accounts and a lot of untouched AU lines, and know what's going on. Some even discount AU lines altogether when you apply with them. Trying to mask usage with AUs isn't the best way to go - hopefully you can work on paying down the primaries into a safe percentage soon.

[Anonymous]

Thank you @OmarGB9  and @Anonymous 

What would you recommend I do with the 4 COs?

Based on date of first delinquency all 4 should age off by 07/2022. The total amount to pay all four is 35k. I have one CA that it is unrelated to the CO'd cards. 

[Anonymous]

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@Anonymous wrote:

Thank you @OmarGB9  and @Anonymous 

What would you recommend I do with the 4 COs?

Based on date of first delinquency all 4 should age off by 07/2022. The total amount to pay all four is 35k. I have one CA that it is unrelated to the CO'd cards. 

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You can settle for less or you can wait them out til next year (if you don't have any apps on the horizon) and work on them more slowly without the pressure of them affecting your credit scores. $35k is pretty significant, but the older they are, and if they are likely outside the SOL (you would need to check for your state), they may be willing to settle for much less, but there is no guarantee. Maybe even more so if they are no longer on your credit reports.

There are no corresponding collection accounts for these COs?

Do you have a way to pay even if they creditors would settle for less?

Keep in mind if you wait them out until they age off and decide to nothing with them, those creditors will have a very long memory, internally. Just because they are not on your credit reports, that does not mean the creditors are required to strike you from their internal records. Each creditor is different and some are more forgiving than others, but if you settle for less, some creditors may still hold that against you for a while, a long while, or forever. Some u til you make them whole completely, even if they agreed to settle for less. $35k between 4 accounts means a lot of money lost to each creditor.

I would pull all 3 credit reports straight from annual credit report (free to pull weekly thru 4/22 - no scores). Each report will list off when each account will age off. TU will list "estimated date of removal". EX will list "on record until" (which will be different than TU and EQ because they "build in" 2-3 months of Early Exclusion into that date) and EQ will list "date of first delinquency" (*not* the also listed "date major delinquency first reported") - add 7 years to that date and the account should age off the month prior to then.

[RobertEG]

In technically correct credit reporting, you would rarely if ever accrue a 90-late after the account/debt has been charged-off.

Federal regs establish 120-day late period for charging-off installment loans, and a 180-late period for charging-off revolving credit accounts.

While those periods are not absolute, they are pretty much standard.

The common CRA reporting manual used by each of the big-3 CRAs gives creditors the option of reporting current and/or prior monthly delinquencies either in terms of days late from billing due date (e.g., 180-late), OR, if at some unspecified prior point the creditor has also charged-off the delinquent debt, simply as CO.

It is thus possible to report CO, followed by some subsequent reporting of, for example, 180+ late.

A 90-late is clearlyy defined under the CRA reporting manual as being delinquent for a period of 90 to 119 days late, and thus reporting a 90-late after a CO is usually not technically accurate, and could bre disputed.  However, the creditor always has the option of simply correcting any prior, inaccurate reporting, and thus dispute resolution would likely result only in an increase in the reporting from 90 to some higher value, such as 180+ or CO.  For that reason, most consumers do not dispute such inaccuracies as a 90-late when the level was actually higher.

[Anonymous]

I would be willing to bet the two that are sleeping for years are not counting in your revolving utilization and the two that have updated are.

When does the Collection fall off?

[simplegirl]

I know that discover is not very forgiving. I had a charge off with them for $1165 which was interest added to it and paid in full in 2019 and i can't even get a secured card from them to this day. So if they don't get paid back I'm guessing it is even harder.