@Anonymous wrote:I've read these boards off and on for years and used to have healthy credit for all of my adult life until several snags hit us and it has been a rough patch financially for about 2-3 years now. My score is in the absolute tank at 475 but the mending process will begin soon. Here is the basis of what I am wanting to know, and if anyone has a similar experience to pull from that would be amazing. The fortunate part is that I haven't needed my credit during this time, but in about 2.5-3 years time I will be wanting to refinance my existing mortgage and then we are looking to purchase another (turn this one into an investment, etc.). I have the means to bring everything up to date on all tradelines, auto, mortgage, etc. in the next few months and, although I don't know at what point it will be - my crazy utilization down from over 90% to under 10% at that time. There are also a couple collections but I believe I can get them removed. Here is the basis of my question - is not the last two years of payment history a fairly big chunk of the 'payment history' category? My hypothetical would be that even though there would be a couple years length of 60, 90 day lates on almost every account as you look about 2-4 years in the rear view mirror I am striving for 2+ years of current on everything. I will also have a good credit mix as I will have a mortgage, one auto and about 3 CC tradelines.
No charge-offs, no bankruptcies, no foreclosures, etc.
Given that information - as bad as it is currently, shouldn't I still expect that I can get my scores into the mid to high 600's, if not even higher than that based on this scenario? The main question revolves around just how much are those derogs older than 2 years going to nickle and dime me, there will be a lot of them. I understand credit algorithms well and I get that EVERY situation is different, I am just wondering how much all negatives being aged more than 2 years will come in to play.
Thanks for anything!
Probably yes to the high 600's.That 90% utilization is a huge factor depressing your score.
You posted about 60 day lates. Check out the red line. Thats when it hits your reports and the estimated pts loss. Look at bottom of chart. It lists the months out from when it hot your reports to 4 years and it sits at 25 pts until it falls off in 7 yrs. Again. YMMV.