yyzjohn

How much pts is Charged off impacting my FICO?

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Anyone have any ideas how much an 6 year old charge off for $8000 dollars is impacting my FICO? Rest of my report is perfect. My last FICO was about from 691-694/EQ-TU with the charge off. I'd like to know if anyone has any experience deleting and old C/O and what improvement did they see?

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Not impacting that much due to the age of the account, 6 yrs. old When is it due to drop off? If within the next 6 months, I try disputing as too old to be on report when there within that time frame, sometimes I get lucky and get a delete.

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It is impacting you by about 30-40 points. Part of it is the charge off status but the other part is the debt ratio. Even though it is charged off it is still an unpaid $8000 debt so that dollar amount has an effect as well.

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30-40? I doubt it, I have 10 positive TL's with good age on them all. (My only baddie) I just had a CO from Toyota Motor Credit for $7,600 drop off 01/10 and just pulled last night from My FICO and my TU & EQ score only jumped 15 points from 687 to 701. Why no 30-40 point for me Meth? Any ideas?

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Payment History affects 35% of the score - the older the item the less it affects the score.

Utilization affects 30% of the score - keep balances low with high credit limits.

Established Credit History affects 15% of the score - try to build long term relationships.

Inquiries & New Credit affects 10% of the score - keep new applications to just a few yearly.

Mix of Credit affects 10% of the score - Mix it up with Installment Loans, Car Loans, Credit Cards...

I would say that the account you have should not be affecting the score much, when it drops off you are not going to see any increase in the score.

Try to dispute it as obsolete, you should be outside of the statute of limitations so the debt is time barred. If they see the dispute and try to sue you, you have a legal defense that the debt is SOL.

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30-40? I doubt it, I have 10 positive TL's with good age on them all. (My only baddie) I just had a CO from Toyota Motor Credit for $7,600 drop off 01/10 and just pulled last night from My FICO and my TU & EQ score only jumped 15 points from 687 to 701. Why no 30-40 point for me Meth? Any ideas?

It's just an estimate based on what I've seen on average. Since the model that Fair Issac developed is a secret sauce, no one outside of them can analyse with accuracy. Since it all depends on the blend of accounts you have it can differ from one person to another.

There are some basic guidelines such as a single late payment on a mortgage with whack you for about 100 points and takes at least 3 years to return to neutral; these are things Fair Isaac has openly said about the model. Also Fair Issac has said the FICO score weighs more heavily on revolving accounts than secured accounts. So the more credit cards you have the less weight an old default on a secured account may have. So we piece together what we can and give good educated guesses (mine wasn't that far off base actually...on a 400-1000 point scale that transunion uses that put my estimate within a 2% margin of error of what you actually reported).

Lastly, be aware that the "consumer" model you get when you buy your own score is not necessarily what the lender will get even if calculated onthe same day. Fair Issac has hundreds of custom models they sell which can weight the score differently. Pull your score from TU and get a 701 but a car lender on the same day may get 720 and a house lender may get 685. So the consumer score you buy for yourself is meant only to be an average, not set in stone.

Edited by Methuss
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They don't want us to know how many points for this and how many for that. Nor do they want us to know how they calculate it. That's how they keep us from having credit and being able to own those items we all dream of LOL

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30-40? I doubt it, I have 10 positive TL's with good age on them all. (My only baddie) I just had a CO from Toyota Motor Credit for $7,600 drop off 01/10 and just pulled last night from My FICO and my TU & EQ score only jumped 15 points from 687 to 701. Why no 30-40 point for me Meth? Any ideas?

I, too, have a single charge-off and am wondering what the numerical impact it has. Specifically, it was a high-dollar CO (20k), so whether or not the size of the CO weighs in must have SOMETHING to do with it?

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Most banks look at the last two years history for credit. Usually the older the account the less it affects your score. Now if ya got a loan and had it for a few years with good history that helps the score as it shows history. Charge offs hurt more when they are within the last two years.

I would ignore it and let it fall off on its own in a year or so. Trying to dispute might wake up a sleeping dog.

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