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Score Effect of Remarks "Reaffirmation of Debt" and "Included in Bankruptcy"?

Have1
Regular Contributor

Score Effect of Remarks "Reaffirmation of Debt" and "Included in Bankruptcy"?

Hello, everyone.

I'm trying to figure out what actual effect remarks may have on my scores.  I have three credit lines that are still on my credit reports from my BK7 in 2016.  

 

1) AMEX which was discharged and shows derogatory status, IIB7 with DoFD as my BK7 filing date.  This is obviously a score killer which will go poof some time in 2023.

 

2) Military Star card which shows nothing in regard to the BK7.  It was at $0 when I filed.  They sent me a letter that the were going to close it because of the BK7.  I called and asked them not to.  Since they hadn't suffered any loss they didn't close it or CLD me.  This is a nice aged open credit line with no derogs that will serve me well for AAoA when my AMEX evaporates.

 

3) My mortgage which I reaffirmed.  There are no lates on the account.  The only "negative" is the remark "Reaffirmation of debt" on Equifax and TransUnion.  Experian shows no remarks or indication of the BK7 in regard to the mortgage.   

 

When I look at credit.com's ExtraCredit product it calls out the mortgage entry on TransUnion as a derogatory but not on Equifax.  My TransUnion scores are  my lowest FICO8 scores and my Equifax are my highest.  EX 701  TU 694  EQ 728.

 

Questions: 

 

1)  Are the remarks of any consequence, score wise?  Or is it just being called out by the CMS because the want as many reasons as they can get to motivate you to call their credit repair service? 

 

2)  I see references to negatives being removed from your credit report after 7 years.  Regardless of their effect on scoring, will the "reaffirmation of debt" remarks evaporate from my reports around the 7 year mark?  

 

Thanks in advance.

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2 REPLIES 2
OmarGB9
Community Leader
Super Contributor

Re: Score Effect of Remarks "Reaffirmation of Debt" and "Included in Bankruptcy"

1) No, remarks themselves do not affect scores.

2) Not sure, but unless the entire account is charged off/collection/repo and is removed completely at the 7 year mark, then I don't think just the comments would come off at 7 years if the account is still reporting and on time.


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Message 2 of 3
Have1
Regular Contributor

Re: Score Effect of Remarks "Reaffirmation of Debt" and "Included in Bankruptcy"


@OmarGB9 wrote:

1) No, remarks themselves do not affect scores.

2) Not sure, but unless the entire account is charged off/collection/repo and is removed completely at the 7 year mark, then I don't think just the comments would come off at 7 years if the account is still reporting and on time.


Thank you for your thoughts.  As I understand it, the remarks are "as of last update" so if the lender stops updating the remark it may fall off. But, then again, on one of the reports the comments are listed over and over apparently representing each time the remark was reported for some period of time. Like the payment grid.

 

The mentions of this I come across are not clear as to effect or process. 

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