@IAhusker wrote:
New guy here with a question... I went through a divorce back in 2004, had some money issues, etc etc and had two loans be charged off. The date of last activity was 12-04 on both of them (same lender for both) Fast forward to now- wanting to build a house here in the next three years, and am trying to get my credit score up as high as I can. I've paid off all credit card revolving balances, have an installment loan on a vehicle that will be paid off two years early by February. Also have some late payments dating back to 2004 and 2005. Current score is 677, but I just paid off all of my credit cards within the last couple months and they haven't shown up on my report as paid yet. My question is how much are the two charge offs hurting my score, and will they fall off on their own in time? Thanks!
Hello and welcome.
Here is how and when derogs drop from you CR, and are thus no longer included in FICO scoring.
Monthly delinquencies under an OC account drop at 7 years from their individual date of delinquency. The date of first delinquency (DOFD) has nothing to do with these drop-off dates. They drop from their own individual dates. So look at each prior OC reported monthly derog date, and simply add 7 years.
If the OC subsequently reports their account as a charge off, that is a totally different and additional post to your CR. Their post as a charge-off will remain in your CR for up to 7.5 years from the DOFD on the OC account, which is the first 30-day delinquency you had on the account, and disregards any later 60/90+ delinquencies that followed. That cannot be reset.
If the OC then refers the account for collection, and a CA posts to your CR, the drop-off date of their collection reporting is the same as that of a CO. It is up to 7.5 years from the same DOFD on the OC account, and the CA cannot reset this date.
So.........if you know your DOFD you can calculate when these CO's will go away on their own. Some people have luck with GW (Good Will) letters to get negative items removed early but I would not suggest that in your case because a GW would probably wake up the creditors and if they update that account in any way it will look like a more recent CO and you do not want that. Your score would drop dramatically.
It's hard to say how much the CO's are still hurting you. All derogatories lose impact over time but they are still there. When they finally do drop off it depends on what is still in your file that will determine how much you gain. Just be grateful when the last one is gone for good.
From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
4/10 TU -772
You can do the same thing with hard work
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