Allowing Time to Heal the Wounds - Impact on Scoring

[EW800]

Hello,  

Just wondering if anyone has any experience with either of the following.  I am just wondering how TIME might heal these major baddies:

-- Credit Card Settlement --  I had to settle on a Chase CC about 19 months ago.  Since my payment history on everything has been perfect since then, my scores (below) have not done too bad of a job of recovering.  Would it be reasonable to think that once this major baddie hits 24 months in age that I might see a bit more of s score boost?  It seems like I have read that although still painful, major derogs sting a bit less after two years.  Is that true?  

-- Foreclosure -- What is the highest FICO score you have seen with a foreclosure still showing on a report.  I completed a foreclosure just over two years ago.  I am sure my scores are still being held down quite a bit from this, although they are not too horrible under the circumstances.   I am just wondering what the highest anyone has ever seen with this major derog still showing?  Would it even be possible to hit roughly the 740 area with a few years of good behaviour?  I assume that there is a maximum possible score as long as something this bad shows.  Your experience?

Thanks again!  

[Anonymous]

I don't know the answers, but I am interested in finding out the answers.  I'm in a situation where early next year will mark 2 years from Bankruptcy for me (divorce, and all payments perfect since with very low utilization), and I'm really hoping I get a little bump.  I'm 13 points away on Equifax from hitting 675, which would make me eligible for the best auto loan rates from DCU, and I'm really hoping I can get there soon.

[EW800]

Hi everyone,  

Just checking to see if there might be any thoughts in regard to this topic of scoring and healing of wounds.  

Thanks so much!  

[MarineVietVet]

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@EW800 wrote:

Hello,  

Just wondering if anyone has any experience with either of the following.  I am just wondering how TIME might heal these major baddies:

-- Credit Card Settlement --  I had to settle on a Chase CC about 19 months ago.  Since my payment history on everything has been perfect since then, my scores (below) have not done too bad of a job of recovering.  Would it be reasonable to think that once this major baddie hits 24 months in age that I might see a bit more of s score boost?  It seems like I have read that although still painful, major derogs sting a bit less after two years.  Is that true?  

-- Foreclosure -- What is the highest FICO score you have seen with a foreclosure still showing on a report.  I completed a foreclosure just over two years ago.  I am sure my scores are still being held down quite a bit from this, although they are not too horrible under the circumstances.   I am just wondering what the highest anyone has ever seen with this major derog still showing?  Would it even be possible to hit roughly the 740 area with a few years of good behaviour?  I assume that there is a maximum possible score as long as something this bad shows.  Your experience?

Thanks again!  

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I'm not sure anyone can say exactly what the 24 month milestone does to improve scores for major negatives.

The recency of any negative item is one of the most heavily weighted factors within the most heavily weighted category of scoring — payment history — amounting to 35 percent of your score. The longer the time since the negative, the less damage it will have, and the higher your score will go.

Much depends on what else has changed in your credit profile in that same 24 month period. A history of all positives does much to negate the damage from a CO or any derogatory.

I guess all you can do is wait and see. Let us know what happens at that 24 month anniversary.