Impact of Derogs Falling Off?

[thomasjm99]

Short Story - Was out of work in late 2018, ended up with some Charge Offs and Collections (4 Charge Offs/3 Collections). These will be falling off my reports between Sept - November of this year and I'm curious what impact I can expect to my scores? I'm currently in the 610-630 range with the biggest issue (other than the above) being high utilization. Thanks in advance!

[pizzadude]

My guess is you'll see a nice FICO score bump, probably at least 50 pts, when all of your derogatory accounts drop.

This is a recent post with similar results.  

[JoeRockhead]

Just as in the other post that @pizzadude shared, as they start to come off, you'll see your scores start to come up some.  You'll see the biggest gains once all adverse information is gone.  As you probably already know, the high utilization is a different scoring metric.  Depending on how high your UT is, it can have a significant negative impact on your scores. 

If you want to share some more details about the number of revolving accounts and the UT % for each, other members could give a more specific idea of what's possible. 

[Thomas_Thumb]

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@thomasjm99 wrote:

Short Story - Was out of work in late 2018, ended up with some Charge Offs and Collections (4 Charge Offs/3 Collections). These will be falling off my reports between Sept - November of this year and I'm curious what impact I can expect to my scores? I'm currently in the 610-630 range with the biggest issue (other than the above) being high utilization. Thanks in advance!

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Two points:

1. High utilization hurts score FAR more on clean scorecards than dirty scorecards. So, get that utilization down before your last derog falls off.

2. As mentioned above, the big boost comes when the last derog falls/ages off.

The last derog falling off should bump your score at least 50 points from current levels. Not sure where your current utilization is sitting. If aggregate is above 29% utilization it is having a large impact on score  Even above 9% AG UT is a significant negative. Pay down all cards reporting balances to under 29% and try to bring aggregate utilization to under 9%. 

[masscredit]

Adding on to the OP's question, are there two stages for a person with a BK? I'm guessing there is a noticeable increase from the derogs falling off at 7 years  and then a bigger score increase after the BK falls off. I'll try for EEs at both points to speed things up.