How to tell potential score increase

[Anonymous]

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

[Anonymous]

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.

[Anonymous]

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.

[Anonymous]

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.

[Anonymous]

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

[Red1Blue]

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.

[SouthJamaica]

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@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.

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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

[SouthJamaica]

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@Anonymous wrote:

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

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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.