Timeline for Credit Rebuilding Strategy
Current License: CC BY-SA 4.0
8 events
| when toggle format | what | by | license | comment | |
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| May 27, 2021 at 23:41 | comment | added | RiverNet | When it comes to mortgage loans, the most relevant period for mortgage companies is the last two years. This isn't to say they don't look at the timeframe prior to that, but the most recent two years tell them much more about your finances than what happened five or ten years ago. Again, if yu don't need another card then why get it? If you're trying to beef up your credit score, work with the ones you have, keeping the balances low and working to get the limits on them raised. If you still want something you won't take a credit hit for, look at Self, which shows as an installment loan. | |
| May 27, 2021 at 19:39 | comment | added | Daveh0 | all that makes sense about the length of credit history... as it pertains to credit score alone. I'm wondering more about the decision-making process as a whole. I'm pretty sure that without that bumpy period my 715 would have been good enough to get me either the card or the loan for which I was denied. My thinking is that if I get another card (even if it has to be secured), when lenders look beyond just the score, they'll see the bad stuff but will also see that fairly recently, someone found it prudent to give me new credit... which hopefully, in turn, inspires them to do the same. | |
| May 27, 2021 at 18:20 | comment | added | RiverNet | @Dave0, "The length of your credit history, or how long you’ve been using credit, typically accounts for 15 percent of your total credit score. While it isn’t the most important factor used to calculate your FICO® score, the length of your credit history does matter. Generally, the longer your credit history, the better it is for your credit score." - cited from Lexington Law at lexingtonlaw.com/credit/length-of-credit-history. | |
| May 27, 2021 at 18:18 | comment | added | RiverNet | @Dave0, if you look at any explanations of the credit scoring models, they ALL show that account age counts for as much as 15% of your score, and the "younger" the average age, the less positive effect it has. If you read any of the articles out there on building credit, they all advise not to close your oldest accounts for that very reason. Say, for instance, I have a single card I've had for 10 years and 2 more I received this year. My average age of accounts would be about 3 years. Closing that one old card would reduce it to less than a year. That definitely impacts the scoring model. | |
| May 27, 2021 at 18:15 | comment | added | RiverNet | I never said it would "drastically improve credit", I said "positive effect on your score when you do a partial settlement is less than it would be if you were to pay it in full". You can see it when you look at your report with sites like Credit Karma. The bureau files report that a collection debt was settled for less than face value, and while the exact number is unknown, there is definitely a difference in how that is scored versus full repayment of a collection balance. I don't mind debating issues, so long as I am correctly attributed as to what I say. | |
| May 27, 2021 at 17:57 | comment | added | Orange Coast- reinstate Monica | SRiverNet raises the interesting claim that repaying 100% of the chargeoff, years later, could drastically improve your credit. I would like to hear more details about what the credit bureaus would notate, and if a credit expert would agree. If you pay back the chargeoff in full, it my mind it would be "paid in full, years late" - is that a real category? How negative is that category vs. the current category (chargeoff) that you are in? | |
| May 27, 2021 at 17:42 | comment | added | Daveh0 | interesting... so you feel account age does have that much of an impact in the decision-making process? I'm not disagreeing... just not 100% aligned with @Pete B's statement above. | |
| May 27, 2021 at 15:26 | history | answered | RiverNet | CC BY-SA 4.0 |