Old Chargeoffs and FICO

nycfico · ‎02-08-2016

Two years ago, I sat right around 550. Despite an IRS tax lien being about 22 months ago, I'm now in the low 670's and haven't had a serious baddie, besides the lien, in over three years (one 30 day late 26 months ago).

I have three chargeoffs that are aging....the newest one occured in 2012 and the others in 2010 and 2011. I'm hoping to get the tax lien removed in mid 2016, but I'm curious if I 'm going to cap out in the 680 to 690 range until those chargeoffs fall off, which won't be until 2019.

Anybody have a sense for this? Say, for example, I was left with only one charge off that was five or six years old...am I still going to be in a very mediocre FICO range, even if I keep my util at 5% and have a good mix of credit?

EdMan63 · ‎02-08-2016

Everyone is different but I can only tell you my situation. I had a charge off in 09 which I settled in 2014 for less than the full amount. My Ex reached a high last year of 730 with no other baddies. It's currently down to 712 now due to a new car loan added last Sept and a new credit card. But I felt I was stuck in a bucket no matter what I did. The CO is scheduled to fall off Ex in May 16. My Credit Karma TU score went up 11 pts to 806 last when I saw it was deleted. I guess they deleted it early. My TU Fico 08 was 707 on Credit Check Total when I ran it Feb 1. Haven't seen it since the CO fell off.

Long story short is I don't think I could get over 740 with the CO reporting. Once it falls off all reports though the sky is the limit. Patiently waiting!! Good luck!

nycfico · ‎02-08-2016

@EdMan63 wrote:
Everyone is different but I can only tell you my situation. I had a charge off in 09 which I settled in 2014 for less than the full amount. My Ex reached a high last year of 730 with no other baddies. It's currently down to 712 now due to a new car loan added last Sept and a new credit card. But I felt I was stuck in a bucket no matter what I did. The CO is scheduled to fall off Ex in May 16. My Credit Karma TU score went up 11 pts to 806 last when I saw it was deleted. I guess they deleted it early. My TU Fico 08 was 707 on Credit Check Total when I ran it Feb 1. Haven't seen it since the CO fell off.

Long story short is I don't think I could get over 740 with the CO reporting. Once it falls off all reports though the sky is the limit. Patiently waiting!! Good luck!

This is helpful, thanks. Not what I was hoping to hear, but helpful nonetheless....

Anonymous · ‎02-08-2016

I've flat lined at around my current scores for around a year. Though I've been opening new accounts to improve my cards portfolio. I'm planning to do the single credit card reporting a balance under 9% trick and see where my scores go. My COs are from 2009 that I settled in 2013

Thomas_Thumb · ‎02-09-2016

@nycfico wrote:
Two years ago, I sat right around 550. Despite an IRS tax lien being about 22 months ago, I'm now in the low 670's and haven't had a serious baddie, besides the lien, in over three years (one 30 day late 26 months ago).

I have three chargeoffs that are aging....the newest one occured in 2012 and the others in 2010 and 2011. I'm hoping to get the tax lien removed in mid 2016, but I'm curious if I 'm going to cap out in the 680 to 690 range until those chargeoffs fall off, which won't be until 2019.

Anybody have a sense for this? Say, for example, I was left with only one charge off that was five or six years old...am I still going to be in a very mediocre FICO range, even if I keep my util at 5% and have a good mix of credit?

The score potential with a baddie on file really depends on the credit profile age, depth of credit and length of time the baddie has been on file. That being said, quite a few posters have reported scores in the 720 to 740 range with tax liens. It appears the same ceiling may apply to a charge off - certainly a 720 score should be possible.

Note: One poster even achieved a score in the low 750s. Interestingly, when his tax lien was removed scores shot up to between 840 and 850 depending on profile. Inquiries on file with two of the CRAs held score to below 850.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950

Anonymous · ‎02-13-2016

Can someone please help me in determining when I should anticipate a few CO's to be removed? We are planning to buy a house next year and would like to plan accordingly. I am a little confused, is the CO due to be removed on the date of last payment or date reported? Thank you guys!

RobertEG · ‎02-13-2016

Neither is relevant to exclusion of a charge-off.

Exclusion of either a collection or a charge-off is no later than 7 years plus 180 days from the DOFD on the OC account.

Once a charge-off is reported, the creditor is required to report the DoFD to the CRA.

That DOFD is the ONLY date used by the CRA to determine when it will exclude the reported CO.

See FCRA 605(c), which was added to the FCRA to clarifiy the exclusion of a charge-off or collection.

DOFD reporting is defined under FCRA 623(a)(5).