What's more hurtful; High Utilization in CO or Recency of Delinquency

[upinflagstaff]

When I first read it in your post I was a little upset (and then I grabbed my printout of FCRA and read the exemption) I am in the process of trying to get one of these items that should be aged out deleted and a couple of days ago we went and talked to a local agency in regards to first time home buyer assistance. This and one other collection - that I am also working on - are the only negatives aside from our high util% that are counting against us. The high util we can get down. The big ugly is obviously going to be harder.

Do the lenders have to specifically ask for the longer reporting time frame or is there something that might automatically set the time for longer ie. if the lender enters a proposed purchase price for a home? I'm now in unfamiliar and slightly uncomfortable territory with regards to trying to purchase a home with old but aged-out bad information.

Thanks for the clarification.

[Anonymous]

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RobertEG wrote:

Cheddar raises a practical point that superscedes the legalities of the FCRA.  The CRAs dont keep data forever.  When they choose to purge their files is something that is their business decision.

All I was trying to alert you to is ithat if, they still do have it in their files, and it meets the $150,000 exemption lobbied into the FCRA by the mortgage lendors, then it is legally exempt, and the lendor can get it.

If "deleted," then that would clearly imply no longer in your file,

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Thank you, Robert.  My post was not about CRAs purging their files.  What I am saying is that even though the FCRA allows it, and even if CRAs were to keep every scrap of data forever, in practice, the vast majority of lenders do not pull full factual reports, even when they are allowed to.

[Anonymous]

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upinflagstaff wrote:

Do the lenders have to specifically ask for the longer reporting time frame or is there something that might automatically set the time for longer ie. if the lender enters a proposed purchase price for a home? I'm now in unfamiliar and slightly uncomfortable territory with regards to trying to purchase a home with old but aged-out bad information.

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The lender has to request this type of report specifically.  It's not something that happens automatically based on the type or amount of the loan being considered.

You don't need to worry about this.  It almost never happens.

[upinflagstaff]

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@Anonymous wrote:

The lender has to request this type of report specifically. It's not something that happens automatically based on the type or amount of the loan being considered.

You don't need to worry about this. It almost never happens.

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Thanks Cheddar, I now feel better about that. That would be kind of tough if everything we ever did wrong came back to haunt us when buying a home.

[Anonymous]

Several of my excellent car loans have already fallen off my credit files.  It seems, if one of these were pulled on me, it'd actually make me look better!  By the way, guys, I already paid the baddy and waiting about a week for the payment to process and the account to show as settled.  I am REALLY hoping you guys advice works.  If my score goes down, at least I have peace of mind knowing it's paid for, and that my other excellent accounts will pull my credit up some way at least by the time I actually need it again. 

[johnpalley]

ssstevie, good luck. i cant wait to see what happens.

[fused]

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ssstevie wrote:

Several of my excellent car loans have already fallen off my credit files.  It seems, if one of these were pulled on me, it'd actually make me look better!  By the way, guys, I already paid the baddy and waiting about a week for the payment to process and the account to show as settled.  I am REALLY hoping you guys advice works.  If my score goes down, at least I have peace of mind knowing it's paid for, and that my other excellent accounts will pull my credit up some way at least by the time I actually need it again. 

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PIF?

[johnpalley]

a friend of mine just asked me a question about something that has to do with this thread. ok, so i just want to get this straight just so i can give him the correct advise. everyone in this thread is saying paying off a charge off is never going to make your credit score go down right? and most likely your score will improve?

Message Edited by johnpalley on 08-10-2008 07:26 PM

[Anonymous]

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johnpalley wrote:
a friend of mine just asked me a question about something that has to do with this thread. ok, so i just want to get this straight just so i can give him the correct advise. everyone in this thread is saying paying off a charge off is never going to make your credit score go down right? and most likely your score will improve?

Message Edited by johnpalley on 08-10-2008 07:26 PM

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Not quite true...

Paying an old CO will cause it to update the balance, causing it's Date Reported to update as well. I know EQ will see it as 'recent derog' other CRAs I'm not sure.

FICO score will not see paid or unpaid.

[johnpalley]

gordonbs, so what if i disputed a charge off account that stopped reporting in 2004. if that dispute caused the credit card company to report again with todays date would that cause my score to go down?

Message Edited by johnpalley on 08-10-2008 08:26 PM