My FICO score had been stagnant for several months until Capital One changed a tradeline (DOLA eq 7/1997) from R5 to R9. A gain of 38 points. Now I am 10 points away from the 700 club. What was stated previously holds true: R5 is very negative and impacts your score significantly. BTW, this tradeline was negotiated with Mr. Cook a year ago. I have tried to dispute it several times but always comes back verified. Got it removed from TU. Currently disputing it on Experian. Lesson learned: stay away from a R5.
I thought R1 was the best then R9 was the worst. I get mixed up. What does certain accts stand for according to this method of scoring? SnakeMan
Your right in 1 is the best down to 9 the worst. What we are finding (and I'm proof) is that R5=CURRENTLY 120 days past due R9= Chargeoff/bad debt and it gets to peacefully age. That's why in this instance R9 is better for your FICO than R5
Ahhh....I get it. You guys are soooo clever. Remind me to never loan you any money darn it! j/k SnakeMan
The FICO scoring system matches the R9 w/the DOLA. My account DOLA being 7/1997 has aged significantly; therefore, increasing my FICO score. The R5 says 120+ days late. To FICO it looks like I am recently late if the report date is currently being updated (by creditor or when I dispute) and/or is recent (say two years). I rather take the charge off because what was done in 1997 is done - "fini". The R5 leaves you in a state of ambiquity. When applying for credit it looks like you are still 120 days past due. Best solution: keep disputing it. Eventually it will come off. Do not settle for a R5. Disputing a charge off does not hurt your score.
