bucket theory

[bobtail]

Yes, full deletion.  Used simulator for 18,000 car loan scores drop 660 -690.  Only other baddie is a mtg from 2004, with 120 day late that was paid in full in 2005. Tried to GW for deletion, but no luck.

Oldest account is master card from 1991, closed, paid as agreed satisfactorily.  Can't reopen MC, from credit union where I am no longer employed.    Average age of accounts 7yrs.

Credit file thin. Only one Orchard Card 320CL opened in 3/09.

First should I vacate judgment

apply for credit card or car loan. 

Currently driving 1998 Windstar with 207,000

Worked so hard to improve credit file, I don't want to see scores fall.  Now I am at the point where I'm afraid to apply for anything.

Suggestions greatly appreciated!

[CreditDrama85]

if i were you i would

1. get auto loan

2. get judgment vacated and make sure the CBs pick up the deletion

3. apply for 1 -3 credit cards with good cl

[Anonymous]

LOL.  Not trying to be argumentative, but I would:

1.  vacate

2.  auto loan

3.  cc's

Derogs are exponential when you have multiples.  The fact that you have other derogs means you won't be rebucketed most likely, which means your score should not go down, but up.

Multiple derogs are flags to lenders.

You don't need as high a FICO to get an auto loan as you do for a CC.  You don't need as high a FICO for home loan as an auto.

Home Loan wants mid score 620 (most important is DTI and derogs)

Auto Loan wants 620 plus (depends on lender and the rate you want)

CC's want higher FICOS for the most part and income

The trend I am trying to show is that IF your FICO goes down (which I bet it won't since your CR is not clean even with vacate, meaning no rebucket is likely), it will improve the "quality" of your CR as a whole and still be well within FICO range of auto loans.

Again, this is all opinion.

I recommend you run multiple FICO Estimations to see the results both WITH and WITHOUT a public record (judgment) but including your other LATES, etc.  and see what it says your score might do.

[smallfry]

---

@Anonymous wrote:

LOL.  Not trying to be argumentative, but I would:

1.  vacate

2.  auto loan

3.  cc's

Derogs are exponential when you have multiples.  The fact that you have other derogs means you won't be rebucketed most likely, which means your score should not go down, but up.

Multiple derogs are flags to lenders.

You don't need as high a FICO to get an auto loan as you do for a CC.  You don't need as high a FICO for home loan as an auto.

Home Loan wants mid score 620 (most important is DTI and derogs)

Auto Loan wants 620 plus (depends on lender and the rate you want)

CC's want higher FICOS for the most part and income

The trend I am trying to show is that IF your FICO goes down (which I bet it won't since your CR is not clean even with vacate, meaning no rebucket is likely), it will improve the "quality" of your CR as a whole and still be well within FICO range of auto loans.

Again, this is all opinion.

I recommend you run multiple FICO Estimations to see the results both WITH and WITHOUT a public record (judgment) but including your other LATES, etc.  and see what it says your score might do.

---

+ 1. Get the report clean. Your scores then have a higher ceiling.

[bobtail]

txjohn,

I ran several different simulations.  Without judgment and car loan, with judgment and car loan.  With the one 120 baddie I have, without it, along with no judgment and car loan, with judgment and car loan.  No baddies and car loan.  EVERY simulation came back 670 - 720!

With results all the same, it probably would better serve me to vacate the judgment. Wait for car loan to age and then apply for prime credit card.

If simulation was different, I would have been afraid to vacate before car loan.  The car is a necessity, not a want.

Thank you, I will keep you informed! 

[Anonymous]

Do keep us posted, since CreditDrama and I got a sorta bet going (LOL  just joking).

Good luck and in the famous words of Elmer Fudd:  "SSHHHH!  I'm hunting judgements.  Ki-wo the judgement!"

[CreditDrama85]

hahaha yes keep us posted. you are doing the right thing because a cleaner report is always better but i am predicting a drop initially.

[cobaltnv]

CreditDrama,
I am curious as to why you predict a drop in score? The OP has other derogs so will remain in a "dirty" bucket. So it is unclear to me how/why any score drop could occur?

[CreditDrama85]

the OP has a 120 day late and a public record right now. when the public record is removed they will have the

120 day late and no public record so i think the drop is going to come from fico scoring the 120 late based on/compared to other files with no public record....(which would make the 120 late serious).

right now the 120 late looks minor compared to a public record that has been satisfied and had a chance to age.

i predict a score drop of up to 30 points.

[Anonymous]

Final call for all bets....place your bets:

Current line up:

CreditDrama - bets drop 30 points

txjohn - bets neutral to 15 point gain

LOL.  Any more bets? 

Nothing like a little spirited bet!