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How to tell potential score increase

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Anonymous
Not applicable

Re: How to tell potential score increase

Would like to hear your reasoning about settling a debt becoming a long term negative.
Message 11 of 28
SouthJamaica
Mega Contributor

Re: How to tell potential score increase


@Anonymous wrote:
Would like to hear your reasoning about settling a debt becoming a long term negative.

They sometimes call it a "charge off", a "modification", etc. They have various code names for settlements which can keep your scores low for a long time. 


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 12 of 28
Anonymous
Not applicable

Re: How to tell potential score increase

Not from my observations. My chargeoff changed status and the balance was updated to $0 and my scores have increase pretty significantly due to that. I gained +10pts once it changed status and another +10pts once it was changed to $0.

 

Also, a Charge off is not a settlement. A settlement is due to a charge-off. Ideally, you want to dispute or request deletion for payment but that is nearly impossible when dealing with the original creditor. 

 

Messages Image(863202814).png

 

 

 

Message 13 of 28
SouthJamaica
Mega Contributor

Re: How to tell potential score increase


@Anonymous wrote:

Not from my observations. My chargeoff changed status and the balance was updated to $0 and my scores have increase pretty significantly due to that. I gained +10pts once it changed status and another +10pts once it was changed to $0.

 

Also, a Charge off is not a settlement. A settlement is due to a charge-off. Ideally, you want to dispute or request deletion for payment but that is nearly impossible when dealing with the original creditor. 

 

Messages Image(863202814).png

 

 

 


There is not the kind of consistency in reporting these types of events which you suggest.

 

They might list a settlement as a chargeoff, or as something else.

 

In your case the settlement is reported as a settlement. Which is a long term negative.

 

 


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 14 of 28
Anonymous
Not applicable

Re: How to tell potential score increase

It’s reported as a settlement and will stay in the credit as long as every other negative which is 7 years.
Message 15 of 28
SouthJamaica
Mega Contributor

Re: How to tell potential score increase


@Anonymous wrote:
It’s reported as a settlement and will stay in the credit as long as every other negative which is 7 years.

..... confirming what I said earlier: "2. If you "settle" a debt you can wind up with a long term negative."

 

Whatever name the creditor chooses to assign to it -- and there are many -- the result is the same.


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 706 TU 714 EX 715

Message 16 of 28
Anonymous
Not applicable

Re: How to tell potential score increase

Versus a short term negative would be what exactly?
Message 17 of 28
Anonymous
Not applicable

Re: How to tell potential score increase

For the record, there aren’t short term or long term negatives when it comes to credit. They all stay on your credit for 7 years from the date of first delinquency.
Message 18 of 28
Anonymous
Not applicable

Re: How to tell potential score increase


@Anonymous wrote:
For the record, there aren’t short term or long term negatives when it comes to credit. They all stay on your credit for 7 years from the date of first delinquency.

I think what was being referred to would be "major" verses "minor" negatives.  Both will impact scores for the full 7 years, but with different potency.  A major will typically only lose 1/3 of it's sting during the first 2 years, with 2/3 of the initial sting sticking around until it's gone at 7 years.  Conversely, a minor will typically lose 2/3 of it's sting during the first 2 years, with 1/3 of the initial sting lasting until dropoff at 7 years.

Message 19 of 28
Anonymous
Not applicable

Re: How to tell potential score increase

Based on what parameters?
Message 20 of 28
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