I know it's not an exact science...but just looking for opinions on which hurts a credit score more: An open installment account (60 month term, close to being closed) with 3 late pays scattered throughout it Or A paid/closed collection account On one bureau I'm getting closed to having only the former reporting and wonder whether once the latter is removed if I can expect a decent shove north for my score.
Payment history is the number one factor when it comes to your credit score, w/ amounts owed a close second. So, I would expect a modest bump in your score once the latter is closed, but those late or defaulted payments appear to be the biggies there w/ the limited info I have. Let us know if you could, since this will be interesting to see one way or the other!
Will do Jason. Once this CB's report updates to where I want/expect it is going (though may be a few more months to go, but happy with my so-far progress), I'll basically have: 2 Accounts 'Good Standing' -- one an open, small CC -- one a closed auto loan (perfect history) 2 Accounts 'Potentially Negative' -- one an open auto loan with 2 late pays -- one a closed auto loan with 3 late pays (but now listed as Pays As Agreed, which doesn't mean much I suppose) I've tried getting forgiveness from the OC of the auto loans; got back generic letters of 'we report only accurate information"...etc. I realize this won't be a 'clean' report, but it will be the closest I've been in a number of years and hope that the late pays (especially since the 3 on the closed account are from 4+ years ago) don't mean much when applying for CR elsewhere.
So, Jason, my 26k in student loans that the USDOE is reporting to look like over 35x that would have a substantial affect?
Mindcrime - Awesome, and yes that all sounds optimistic. JAM - Ha, unfortunately... Here's an old blog detailing FICO scores. Amounts owed can = 1/3rd of scores, according to Fair Isaac. (Doesn't seem so "fair", huh...? Sorry, I've got terrible jokes this morning.)
Well, if I could get an expert witness to detail how $26,611 of debt looking like $939,204 of debt would create substantial economic hardship because of the impact of the amount owed looking incorrect. Yes, a blow-up of 35.293825861485851715456014430123 x the amount of the account.
