Mortgage Score Impact - Less Than Expected

[Anonymous]

It was settled for less in 10/2016.

[Anonymous]

@AnonymousThank goodness its paid, but it is still gonna hurt for the full 7 years. The "for less" doesn't help you, either unfortunately.

There is a max score on a dirty scorecard. I don't know what that is, tho. The only way to know exactly is to test your profile. AZEO with a nominal balance on one national bankcard, something you don't seem to wanna do because you think you may be near that max, if not already there, and you may be.

Wish I could tell you tell you more.

[Revelate]

You can get north of 740 with a BK so I doubt CO / settled for less is capping scorecard though seemingly settled for less is a nasty remark score wise.  I think there's a small breakpoint on age on the FICO 04 algorithms for derogatories around either 4-5 years but it wasn't that awesome for tax liens anyway which counted similarly to BK/collections back in the day.  Not sure how settled for less or DMP scores, we don't see many of those comparitively.

Wouldn't hurt to post your reason codes, but generally speaking you will get points going from 1->0 inquiries in my experience on TU04 (and you probably have seeking credit on some of them) also while the reason code doesn't go away I think on some mortgage models you might get a small uptick on AOYRA crossing a year.

[Anonymous]

Thanks for your help.  Is there any risk of paying the Capital One charge off in full now so that they update to paid in full?  This was settled for less in 10/16.  I haven't done so already because I was concerned that it would affect a reporting timeline or activity on the account.  

My AoYRA is 1 yr 4 mo - which is my Discover Card.

The mortgage reason codes:

EQ5 (680 Score)

- You have a serious delinquency 60 days past due or greater

- You have one or more accounts showing missed payments

- You have a consumer finance acount on your credit report  (I have a closed account with One Main Financial that never had any missed payments and was paid in full in 2/2018)

- You have a short credit history (My AAoA is 9 years)

TU4 (703 Score)

- You have a serious delinquency 60 days past due or greater

- You have one or more accounts showing missed payments

- You have a consumer finance account on your credit report

- You recently missed a payment or had a derogatory indicator reported on your credit report (last missed payment on TU was 4y 7mo ago)

EX2 (687 Score)

- You have a serious delinquency 60 days past due or greater

- You have one or more accounts showing missed payments

- You have a consumer finance account on your credit report

- The remaining balance on your mortgage or non-mortgage installment loans is too high (7 student loans; remaining balances range from 54% - 84%)

Thanks again

[seattletravels]

Your 60 day lates and accounts showing missed payments are definitely hurting the score the most. Absent any success with goodwill,  I'm not sure there's a lot you can do at this point absent AZEO.

I wouldn't worry about CFA, I think the score hit is minimal there because it's the top reason listed for me on EX and TU, EQ doesn't list it for me.

[Revelate]

I don't think you can true up a debt settled for less but I could be mistaken.  I'd ask on the Rebuilding forum but not sure it would help that much more.  Is it still updating as open or has it been passive since 10/16 when it was settled?  Namely does it still have a balance on it and reporting or is it $0/closed as it likely should be?

[Anonymous]

It shows as closed and hasn't been updated since November 2016 - February 2017.  The balance shown is $0.

[dragontears]

---

@Anonymous wrote:

It shows as closed and hasn't been updated since November 2016 - February 2017.  The balance shown is $0.

---

My advice is don't mess with this account anything you do (short of getting it completely removed) can cause an update and FICO algorithms are known to "see" the account as recent. 

[Anonymous]

@AnonymousI agree, don't touch it cuz it hasn't updated since 16-17 and if you do, it will most likely. That would make it recent and hurt you worse most likely, as @dragontears said. That's what Rev was getting at and why he asked.

You've just got too many negatives and too recent to get much higher. I'm sorry and I wish I could tell you something better, but I'm gonna tell you the truth when it's good AND when it's bad. I'm sorry.

AZEO will probably give you some points, but I don't think I'd expect a lot.

[Anonymous]

I'm kind of in the same boat on a refi.  Dirty card and trying to get the Mortgage FICO's up.  I'm interested in your comment "mortgage scores don't move that quickly".  I would interpret that to mean there is a time / history / trend component as it relates to utilization, eg - even if you go to zero on the credit card balance in the current month, the algorithim somehow is looking at the previous month(s) and doing some sort of comparison.  is that right?