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Slate is almost clean.. now how do I rebuild?

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guiness56
Epic Contributor

Re: Slate is almost clean.. now how do I rebuild?

A CC will help your score, yes.  Manage it wisely and let it age for about a year and your score will reflect that.

 

As for an installment loan, it will help with credit mix.  Installment loans have very little impact score wise but if you get one, no matter how much, and make timely payments until it is closed, it will still factor into your AAoA.  Paying it off won't help much.

Message 11 of 36
cwwatts1202
Established Contributor

Re: Slate is almost clean.. now how do I rebuild?


@BuffaloBoy wrote:

About what @DaBears said, he said it in another thread too and I was suprised. So I called my local bank and asked them. They've never heard of anyone pulling a file to look at anything over 7 years. Then I called our loan officer (I own a car dealership) at HSBC and he has never heard of anyone pulling a file over 7 years. 

 

So take that as you will.


This makes me feels LOADS better lol 

Message 12 of 36
guiness56
Epic Contributor

Re: Slate is almost clean.. now how do I rebuild?


@BuffaloBoy wrote:

About what @DaBears said, he said it in another thread too and I was suprised. So I called my local bank and asked them. They've never heard of anyone pulling a file to look at anything over 7 years. Then I called our loan officer (I own a car dealership) at HSBC and he has never heard of anyone pulling a file over 7 years. 

 

So take that as you will.


Just because neither of the lenders have ever heard of it does not make it not true.  And for a bit of clarification, when something is excluded from your CR due to age, it is also excluded from viewing by others, however, it is still on the report.  It isn't a separate file, per se. 

 

Under FCRA, those items exlcuded for age can be viewed by lenders/creditors, if asked to do so, when either credit or insurance is $150,000 or your annual income is $75,000 or more.  It is rare that they will and it is my believe that most are not aware of this option.

Message 13 of 36
BuffaloBoy
Valued Member

Re: Slate is almost clean.. now how do I rebuild?

I didn't say it made it not true. My point was that two separate people, both of whom do this for a LIVING, have not in their 30+ years of doing it heard of any underwriter doing that.

That says a lot.

Or you could go on being scared that it *could* happen if you meet than one in a trillion underwriter who does that. Whatever works for you.
Message 14 of 36
guiness56
Epic Contributor

Re: Slate is almost clean.. now how do I rebuild?

The whole point is, whether any UWs have done it or not, is the simple fact that they can.  It was more of a just letting you know kinda of thing.  And since you have to disclose all unpaid debt during a mortgage application anyway most wouldn't be scared knowing it could happen.

Message 15 of 36
cwwatts1202
Established Contributor

Re: Slate is almost clean.. now how do I rebuild?

There has to be a reason for the 7 year rule, I have no idea what it is, but I like to think it's to give people a fair chance at having good credit again, or being able to obtain credit such as a home loan. A lot can change in 7 years and just because 7 years ago we didn't pay the debt (a debt that we actually do not owe, we were screwed over by the apartment complex) doesn't mean that it would happen again. The company we are planning to go through only requires a 620, that is not a great score, so giving loans to people with a 620, they have to know there's gonna be a reason why the score is only a 620. Our second choice is a USDA direct loan, which if i'm not mistaken also only requires a 620, maybe a 640? Either way, we are applying for the loan about 3 months before we get our income taxes back next year, they'll tell us what/if we need to pay to be approved. Hopefully since the loans we are going for are geared towards people with less than good credit, we won't have any issues. Especially since we have not had any collections in 5 years, other than the FP charge off that we paid as soon as we had the funds to do so, which was last month (and it was charged off in june or july of last year, so it didn't sit in collections long before we paid it)

Message 16 of 36
BuffaloBoy
Valued Member

Re: Slate is almost clean.. now how do I rebuild?

@cwwatts you will learn that there are people to listen to on here and those not to. You're right - there is absolutely a reason the 7 year rule exists. 

Message 17 of 36
guiness56
Epic Contributor

Re: Slate is almost clean.. now how do I rebuild?


@BuffaloBoy wrote:

@cwwatts you will learn that there are people to listen to on here and those not to. You're right - there is absolutely a reason the 7 year rule exists. 


First, if that was directed at me, I do know what I am talking about. It is not my opinion, it is fact and is in the FCRA.

 

Second, if what I say or one of the people not to listen to bothers you for any reason, move on.  There is no need to get defensive, especially if you are not aware of the facts and being told the facts bothers you.

 

Thirdly, the FCRA  is the governing law on when items are excluded due to the expiration of the DoFD, which is 7 years plus 180 days.  They are also the same governing law that said those items that have been excluded upon expiration of the DoFD are EXEMPT from exclusion under certain circumstances, one of which is applying for credit and/or insurance of $150,000 or more.

 

Yes, there is a reason for the exclusion rule, same as there is for the exemption rule.  And because most under writers do not use it or are not aware of it does not make it no less of a fact.

Message 18 of 36
DaBears
Senior Contributor

Re: Slate is almost clean.. now how do I rebuild?


@BuffaloBoy wrote:

@cwwatts you will learn that there are people to listen to on here and those not to. You're right - there is absolutely a reason the 7 year rule exists. 


BuffaloBoy, I would strongly suggest to sit a whole day and read the FCRA definitions and come back before being defensive to others. I know what I stated is true and like Guiness has stated, It doesn't happen all the time and just because the UW who supposedly never heard of it is either one lying or works for a very small bank/lender. The UW at a car dealership could care less of what you have on your CR they care about making money. If you think you know better than you wouldn't be on these boards asking a 1000 questions!!!! 

Message 19 of 36
Shogun
Moderator Emeritus

Re: Slate is almost clean.. now how do I rebuild?

monster popcorn.jpg

 

 

The above information given by guiness and dabears is absolutely correct.  It was not meant to scare or frighten the OP, it was just to let them know of what "could" happen.  If they had given the information that "this would fall off your CR and never be seen again", then that would have been misinformation.  It was noted that the information never goes away, it is just excluded from reports when the CRTP has expired.  

 

However there are a couple reasons when these exclusions are allowed to be disclosed.

 

1.  Applying for a loan, mortgage, etc. in excess of $150,000

2.  Applying for employment with a salary in excess of $75,000

 

It is true that most lenders do not use this method, however there are several out there that do.  It was also mentioned that when applying for mortgage, loans, etc., whether you have any outstanding unpaid loans.  It is up to you whether you tell the truth or not, I won't get into that.

 

If the lenders that you know know do not know these rules, maybe it's because they aren't aware because it doesn't fall within their scopes.  Are you selling vehicles in excess of $150,000, if not, then the auto lender you are using would most likely not know this information.

 

With all this being said, sometimes the information that is given isn't for you, if not then that's OK.  And even with some of the information, their are different viewpoints.  However to tell the OP not to listen to certain people goes beyond what is prudent.

 

Now, I've typed way more than I wanted to.  Best of luck to alol.   Shogun

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
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Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 20 of 36
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