How low will it go? Just curious...

Luckin, it's difficult to give an exact figure but since your score is in 700 I can confirm that it would suffer a serious blow.

I remember reading an article recently where the logic of computing FICO was revealed. It says, that higher your score, higher would be your penalty for being ignorant.

I'd try to give the link of that article here.

Here it is.

"http://finance.yahoo.com/banking-budgeting/article/108239/fICO-reveals-how-common-credit-mistakes-affect-scores?mod=bb-creditreports"

So you can expect a drop of 100 points in your score after settling the account. However, this drop wouldn't be permanent. But can surely build it later after being done with your debt.

Good luck!!

good article..but do you think 100 points per card? It can't be that bad..I mean I expect it to take a huge hit, but just didn't understand if it goes credit card by credit card..you know what I mean?

Luckin10

I think it is 100 points total, not per card.

Only my two Chase cards have reported 30 days late. My credit score was 698 now is a 613. Husbands was 728 now a 607. Have defaulted on 4 cards total; 2 Chase 2 BOA.

Heres my thoughts ........
Although Im no expert I do pull credit on people all the time in my job. Just last week a gentleman came in and he had let
about 5 credit cards go - prob about 6-10 months late on each (Balance of about 30k on all cards)
He mentioned to me that his score used to be 715 - But when I pulled it
he had a 542 -
Now here was the thing - He had a car loan that was being paid perfect although his 5 credit cards we 6-10 month late.

He had not settled any of the cards he was just letting them go .... I imagine if he had diligently tried to settle the cards his score would have been a bit higher

Six months ago I seetled 65K at 35% average, 140 days late on 6 cards. My score as of last week is 663. Before that was 734. So i took a hit, but - my 2 car loans, mortgage and 2 other credit cards are perfect. With my debt to iincome ratio being low - my score can only go up. :) and it does

Wow all such great information..thank you!! Love this sight!

a good credit score is the root of all evil, hope that makes a little sense

aka RIOT

I am 5 months out on 9 accts including mtgs. Had 750 now 507. sucks

Quote:

Hey everybody above who knows their credit score: how do you check it? Do you use a paid service?

501/501/501 and only that good because it is the lowest you can go.

Effed, you are entitled to receive free credit report from all the three credit bureaus once in a year. You can also use the services of a credit monitoring company if you want to keep a close watch on the activities on your credit report.

Thanks SC. I was actually hoping somebody would suggest a good credit monitoring service they like and that's affordable. I'm going to get a free one as a baseline but would like to keep an eye on it over the next year.