What is affect when bad payment history is 7yrs is removed?

[Anonymous]

Say my xurrwnt FICO scores are currently 660 to 710 because of collections in the past but for last 3 yrs all cars have been paid on time and I have rebuilt my credit card credit to $40000. How much will my scores go up when all the bad history is removed from my reports after the 7 yr period is up to which all the bad history is removed?

[Anonymous]

Prediciting future scores is not easy. But I'd say that your scores should rebound tremendously once all the derogoratory items age off.

[Thomas_Thumb]

If your collections are paid off, you can get an idea of the future boost in Fico 8 by getting a 3B report. Assuming your collection(s) are $100 or more, compare Fico 8 score to its Fico 9 counterpart from the same CRA. Fico 9 ignores paid collections regardless of dollar amount. If you get a report, let us know how the scores compare.

As a general rule collections hold down score 50 to 80 points. They all need to be removed or drop off from Fico 8 and older Fico models to see the big score boost. With Fico 9 you can get the same boost by paying them off. In your case, given the collections are older, i'd gusetimate score boost at 50 to 60 points.

[Anonymous]

Thank you for this informative information that I was not aware of.
Per your request my Equifax 8 score is 674 and 9 score is 751. Transunion 8 score is 709 and 9 score 759. Experian score 8 is 673 and 9 score 706.
I dont know why Experian is so different than the others and I have called them and they won't or can't explain why.

I am needing to get a car and have been working to get the scores up so to hopefully qualify for better or incentive interest rates.

Do you know if any of the car companies actually use the 9 score and if so are the 9 scores I have good enough to qualify for better interest rates or because the 9 score is different than the 8 scores they require even higher 9 scores?

[Anonymous]

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@Anonymous wrote:
Thank you for this informative information that I was not aware of.
Per your request my Equifax 8 score is 674 and 9 score is 751. Transunion 8 score is 709 and 9 score 759. Experian score 8 is 673 and 9 score 706.
I dont know why Experian is so different than the others and I have called them and they won't or can't explain why.

I am needing to get a car and have been working to get the scores up so to hopefully qualify for better or incentive interest rates.

Do you know if any of the car companies actually use the 9 score and if so are the 9 scores I have good enough to qualify for better interest rates or because the 9 score is different than the 8 scores they require even higher 9 scores?

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Fico 9 is gaining traction but not much. I would call the lenders you are interested in to ask them whether they use Fico 9.