Is this affecting my score?

[907grown]

I have a charge off from BofA, First Premier, both of these are due to fall off in 2011, are these still adversely affecting my score?

[haulingthescoreup]

Yes, because they put you in a "dirty" bucket (serious derog.) It's probably not a lot, if everything else is good. This is because, compared to others in "dirty" score buckets (presence of serious derog; presence of public record), you'd look pretty good. But it definitely keeps a ceiling on your scores.

Do you have any other serious baddies? --60-day lates or older, collections, public records, etc. If not, when these fall off, you'll move into a clean history bucket, most likely one driven by length of history (AAoA/ oldest account.) If you have your util under control at that point, and you haven't gone wild with new accounts, your score will probably increase, unless you're at the lower end of one of the credit age ranges.

[907grown]

Okay, so this is actually my husband's report, but I am doing all the work to both of ours, anyway, there is one newer collection, it is 140.00, I know I need to pay it, it should have been paid by workman's comp, and stupidly, I did not actively persue fixing this, therefor, it was overlooked somehow by a previous employer's insurance, and my husband ended up with the collection in his name.  I will pay that sometime after Christmas. 

He has a cc that is closed, always paid on time, only had it open for about a year, but the CU that issued it is still reporting it monthly.  We are also about to open him a new secured card, the simulator thinks that would be good for him, projects a 25-30 point increase, for me a decrease, so just open it in his name.

We have a truck loan that was opened at our CU in August, only 4 months of history, but all good

We have a credit line with CU, 500.00, open, always paid as agreed last reported a 180.00 balance

We have a few previous credit lines with same CU, all 500., all good, and all closed (I think there are 2 of those)

He has a personal loan that he had for 1.5 years, on time, closed, paid off

Then of course there are the 2 CO, Bof A reports 0 balance, and FP reports "Sold to arrow financial"

Arrow reports a balance owing of 650.00

That's it, that is all that is on the report........

Should we pay off that FP cc with tax returns or just let it ride?  I want to buy a house, but we are planning for a 2011 purchase, in the summer, so all of those will have aged off by then....  What do you think?

[MarineVietVet]

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@nyankovic wrote:

Okay, so this is actually my husband's report, but I am doing all the work to both of ours, anyway, there is one newer collection, it is 140.00, I know I need to pay it, it should have been paid by workman's comp, and stupidly, I did not actively persue fixing this, therefor, it was overlooked somehow by a previous employer's insurance, and my husband ended up with the collection in his name.  I will pay that sometime after Christmas. 

He has a cc that is closed, always paid on time, only had it open for about a year, but the CU that issued it is still reporting it monthly.  We are also about to open him a new secured card, the simulator thinks that would be good for him, projects a 25-30 point increase, for me a decrease, so just open it in his name.

We have a truck loan that was opened at our CU in August, only 4 months of history, but all good

We have a credit line with CU, 500.00, open, always paid as agreed last reported a 180.00 balance

We have a few previous credit lines with same CU, all 500., all good, and all closed (I think there are 2 of those)

He has a personal loan that he had for 1.5 years, on time, closed, paid off

Then of course there are the 2 CO, Bof A reports 0 balance, and FP reports "Sold to arrow financial"

Arrow reports a balance owing of 650.00

That's it, that is all that is on the report........

Should we pay off that FP cc with tax returns or just let it ride?  I want to buy a house, but we are planning for a 2011 purchase, in the summer, so all of those will have aged off by then....  What do you think?

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there is one newer collection, it is 140.00, I know I need to pay it,

A collection carries the same negative weight whether it's paid off or not. If you get those collections removed it would help your score.

7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

CC interest free as of 8/09
"Hello my name is Sandy and I'm a recovering crediholic".

[RobertEG]

Several things to ponder....

The charged off BoA account obviously had prior account delinquencies reported by them prior to their charge off.

So each of the OC account delinquencies prior to the CO will remain, and affect credit score, for 7 years from their individual dates of delinquency.  So you first need to know when each of them drops off.

The OC then did a CO.  To know when that will drop from credit scoring, you need to know the date of first default with the OC.  The separate CO drops at 7 ½ years from that single date.

Then the OC also brought in a CA to collect the remaining debt, who reported this to his CR.  That also remains for 7 ½ years from the DOFD on the OC account, and is an additional hit on his credit score.

  

All of these will adversely affect his score until they drop, whether or not they are paid.  Make sure you are certain of the DOFD before you assume a drop off date.

 

If the CA remains unpaid, you also run the risk of them bringing legal action.  If the SOL has not expired, they could obtain a judgment against him, and post that to his CR.   That would start a new 7 year clock running on a new derog in the form of a public record.

I would send the CA a pay for deletion offer (PFD).  If they accept it, that would remove the collection, and forstall any legal action on their part, but wont effect removal of the account delinquencies or charge off reported by the OC.

[RobertEG]

I hate to further alarm you, for it appears that you are already stressed to the max, but there is one additional caution I will raise.

The drop off dates under FCRA 605(a) only prevent those derogs from being included in any credit reports issued by the CRAs for transactions below $150,000.  It does not require that the accounts, or their prior history, be deleted from his credit file.

Be aware that FCRA 605(b) has a blanket exemption of all drop off date restirctions imposed under FCRA 605(a) if a creditor requests a credit report involving any credit transaction involving a principal amount of $150,000 of more,  That is true of most mortgage loans.

So there is no absolute drop off date from credit reporting for higher princiapal loan applications.

FICO may no longer score them, but the potential creditor can still legally request, and receive, those records from his credit file forever if it is a higher-end loan.

Message Edited by RobertEG on 12-19-2009 11:56 PM

[Jazzzy]

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@RobertEG wrote:

I hate to further alarm you, for it appears that you are already stressed to the max, but there is one additional caution I will raise.

The drop off dates under FCRA 605(a) only prevent those derogs from being included in any credit reports issued by the CRAs for transactions below $150,000.  It does not require that the accounts, or their prior history, be deleted from his credit file.

Be aware that FCRA 605(b) has a blanket exemption of all drop off date restirctions imposed under FCRA 605(a) if a creditor requests a credit report involving any credit transaction involving a principal amount of $150,000 of more,  That is true of most mortgage loans.

So there is no absolute drop off date from credit reporting for higher princiapal loan applications.

FICO may no longer score them, but the potential creditor can still legally request, and receive, those records from his credit file forever if it is a higher-end loan.

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Hi Robert...in your experience, how often do you see this happen? In my reading in the mortgage forum, I have been curious to see if homebuyers end up being surprised by this, but I've not read of anyone having it happen yet.

I'll be making an app next summer/fall, and I'll be curious to see if any of our old lates show up. I'm thankful that you warn us that this could happen...I just hope it doesn't.