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How to tell potential score increase

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Anonymous
Not applicable

Re: How to tell potential score increase

Not quite sure what you're looking for in terms of parameters.

Message 21 of 28
Anonymous
Not applicable

Re: How to tell potential score increase

Trying to understand what we are defining as high impact (long term) negatives versus low impact (short term) negatives. This could be useful in the future.
Message 22 of 28
Anonymous
Not applicable

Re: How to tell potential score increase

As was said earlier, the "term" [7 years] is going to be the same regardless of the negative... it's just the impact of that negative (major vs minor) over the course of that 7 year time line.  When you're talking minors, that would be a single 30D and some may argue a single 60D... everything else basically to my knowledge be it 90D+, collections, COs, liens, etc. are majors.

Message 23 of 28
Anonymous
Not applicable

Re: How to tell potential score increase

I’m aware of that. I’m trying to get a feel of what the previous poster was saying, implying that because this was now marked as a “settlement” then it becomes a “major” negative, as if a Charge Off wasn’t.
Message 24 of 28
Anonymous
Not applicable

Re: How to tell potential score increase

A CO is of course a major, so perhaps the person you are referring to is misinformed.

Message 25 of 28
Red1Blue
Super Contributor

Re: How to tell potential score increase

I guess which ever way one looks at it the item will remain on the report from 7 years and its potential impact  will reduce as the time goes. Settling the debt probably increases the chances to do a GW later and possibly Creditor / Collection agency might remove. Also gives peace of mind some one is not going to sue you in the middle night. If one can manage, probably BK is a best option and get the debt out of the way. For those BK is not a option sail the waters slowly and take care of things and hope for the best. At this stage damage is already done.

Message 26 of 28
SouthJamaica
Mega Contributor

Re: How to tell potential score increase


@Anonymous wrote:
I’m aware of that. I’m trying to get a feel of what the previous poster was saying, implying that because this was now marked as a “settlement” then it becomes a “major” negative, as if a Charge Off wasn’t.

I never said that a "charge off" is not a long term negative. I said it is a long term negative, and it is one of the many terms used to describe the long term negatives caused by settlement of a debt. Here is what I actually said:

 

If you "settle" a debt you can wind up with a long term negative.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/How-to-tell-potential-score-increase/m-p/5664922#M157818

 

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.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/How-to-tell-potential-score-increase/m-p/5665893#M157851

 

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.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/How-to-tell-potential-score-increase/m-p/5666376#M157877

 

..... 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.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/How-to-tell-potential-score-increase/m-p/5666384#M157880


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

Message 27 of 28
SouthJamaica
Mega Contributor

Re: How to tell potential score increase


@Anonymous wrote:

A CO is of course a major, so perhaps the person you are referring to is misinformed.


Dear @Anonymous 

 

I never said that a "charge off" is not a long term negative. I said it is a long term negative, and it is one of the many terms used to describe the long term negatives caused by settlement of a debt. Here is what I actually said:

 

If you "settle" a debt you can wind up with a long term negative.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/How-to-tell-potential-score-increase/m-p/5664922#M157818

 

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.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/How-to-tell-potential-score-increase/m-p/5665893#M157851

 

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.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/How-to-tell-potential-score-increase/m-p/5666376#M157877

 

..... 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.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/How-to-tell-potential-score-increase/m-p/5666384#M157880

 

I'm done with this thread.


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

Message 28 of 28
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