Helping out my sister who has done well in the last 5 or so years to get her financial affairs in order and thus her credit profile as well.
She is currently around 720 on EX and EQ, her TU is around 769.
She has one baddy on EX and EQ showing from almost 60 mos ago for $2400.00 to a company called One Main Financial.
It is not in collections, just listed on her EX and EQ as the following:
Equifax
Experian
Current score and other info:
Assumptions are as follow:
-Told her that she could expect her scores to jump a bit at 60 months, 72 mos and of course 84 mos when it falls off. Is that a true statement?
-Told her not to engage with One Main Financial at all, so as not to reset the clock. Did some searches here on MYFICO and see that there is not lot of success with them as it relates to PFD. Googled them as well as it appears other sites say the same thing about them.
So far she has not had any real issues when applying for a auto/car/mortgage loan, although it did come up in the mortgage loan process, however, she got the mortgage, a 30yr fixed at 3.25% with 22% down.
Issue is that both she and I believe that here EQ and EX scores should be going higher in the new year when that 60 month mark is reached.
Other issue, although I think it is remote, is that One Main Financial could sometime in the next 24 mos place it in collections (although it says that in the Equifax screen grab, it is not in collections as she has zero collections. It has had that status for about 4 years now, give or take. Is that a correct assumption, that at some point One Main Financial could formally send to collections and thus impact her scores? If so, that collections account would still fall off at the 84 mos mark, yes?
Last issue, is they could seek a judgement against here at the 83 month mark and win thus affecting here score for a decade, yes? (She lives in Texas).
Should she just reach out to them and pay the **bleep** thing off? Would that reset the clock, or would it still fall off in 84 mos?
TIA!!
I'd look hard at the Equifax report, it looks like that CO is still open w/balance and being reported. Tradeline data gets excluded at the 7 year mark, but that doesn't necessarily airstrike the account if it's still reporting to my understanding as that's still an active tradeline.
A CO is a major deliquency and I would expect it to factor into the score for as long as it's on there; it's already pretty old, maybe there's a 5 year boundary but I doubt there's anything between that and falling off TBH. A 720 is not a crappy score for a major derogatory on it at all, ESPECIALLY if that status update date on correct on EQ. If it's still reporting as an open CO there isn't much that can be done other than just paying it though it's a little suspect that the EX and EQ are identical. Hard to say.
CO's suck, one of the least consumer friendly problems with a credit file as they can report ad naseum until settled. Would double-check the dates involved and look at the tradeline data on the annualcreditreport report, and ask in RYC.
@Revelate wrote:I'd look hard at the Equifax report, it looks like that CO is still open w/balance and being reported. Tradeline data gets excluded at the 7 year mark, but that doesn't necessarily airstrike the account if it's still reporting to my understanding as that's still an active tradeline.
A CO is a major deliquency and I would expect it to factor into the score for as long as it's on there; it's already pretty old, maybe there's a 5 year boundary but I doubt there's anything between that and falling off TBH. A 720 is not a crappy score for a major derogatory on it at all, ESPECIALLY if that status update date on correct on EQ. If it's still reporting as an open CO there isn't much that can be done other than just paying it though it's a little suspect that the EX and EQ are identical. Hard to say.
CO's suck, one of the least consumer friendly problems with a credit file as they can report ad naseum until settled. Would double-check the dates involved and look at the tradeline data on the annualcreditreport report, and ask in RYC.
Thanks, they both say closed, looking at them right now, but appears that the creditor is updating monthly the status as Late. Not sure how to read that.
Those were pulled today and also looked at Myfico just now and got this, so now it does show as open, thoughts? (experian does not come in to myfico due to freeze). Thoughts?
As much as I like MF and the other services, it's a 3rd party representation of what's in the bureau's dataset and it's prettied up... there can be errors in translation so to speak. This is a scenario where it's absolutely crucial to know what's on the base report, burn the annualcreditreports pull for trying to diagnose this.
@Revelate wrote:As much as I like MF and the other services, it's a 3rd party representation of what's in the bureau's dataset and it's prettied up... there can be errors in translation so to speak. This is a scenario where it's absolutely crucial to know what's on the base report, burn the annualcreditreports pull for trying to diagnose this.
Ok, we went to annualcredit report and got both the EQ and EX pulls. It lines up with what is on MyFico and other sites. Here are the screen grabs. The EX shows it is set to fall off in April 2018. EQ doesn't say that though. EQ says date of last payment was 05/2011, and 7 years from that would take it to May 2018, which is similiar to EX saying it will fall off on April 2018.
Thoughts? Still concerned that they could file and get a judgement against her. But if she pays right now, does that reset the clock? It would go as a PIF, so wonder how that would affect her score. TIA!
If it were me I'd cut them a check based on how it's reporting to EQ on the assumption I could afford it. The DOFD is listed there, not sure why EX has it coming off so much earlier as it looks like the EQ date is correct, but get the line drawn in the sand and get the status update date aging. Odds are it's not going to improve much until it's gone anyway, on the flipside it's on an installment loan which might be less impactful then how charged off credit cards often get scored (closed account w/balance = bad mojo).
Not sure how the score would react though over the short term, I just wouldn't want that hanging over my head and $2K isn't enough to make me bury my head in the sand personally.
Admittedly if I had a mortgage or similar in play I'd sit on it, get qualified, and if the LO made me pay it, do it as a function of closing. That'd really be the only reason I'd wait personally.