generic question about credit score and settlement

Date: Wed, 05/27/2009 - 08:22

Submitted by anonymous
on Wed, 05/27/2009 - 08:22

Posts: 202330 Credits: [Donate]

Total Replies: 8

so let say I settled all my CCs, my credit reports show either settled or settled in full, of course since these accounts were settled balance will never be $0 as they were NOT "paid in full" or "paid as agreed". At this point I'm still paying of my car loan, never late will be paid off in 2010 and mortgage never late will be paying it for 20+ years, my payments (car + mortgage) are representing about 30-35% of my income so here is my question with history of settlement on file what I can expect my credit score to be in let say 1-2 years from day I settled last account?

It is true that since you have settled your credit card accounts

It is true that since you have settled your credit card accounts for less, your credit score will come down. On the other hand, if you are regular with your payments on your auto and mortgage loan, the reduction in your score will be compensated by the increase in your score due to a good credit history.

lrhall41

Submitted by novice on Thu, 05/28/2009 - 00:14

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Time is the cure all for credit scores. After 2 years, they wil

Time is the cure all for credit scores. After 2 years, they will still be derogatory but their impact will lessen with age. In the meantime, open a secured card and start rebuilding good credit history.

lrhall41

Submitted by NASCAR_Devil on Thu, 05/28/2009 - 05:10

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is mortgage and auto loan enough to rebuild credit or do I have

is mortgage and auto loan enough to rebuild credit or do I have to open secure credit card?

lrhall41

Submitted by anonymous on Thu, 05/28/2009 - 14:26

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the mix of credit is just that...it takes into account the types

the mix of credit is just that...it takes into account the types of credit you have...mortgages & loans are loans secured by the asset...credit cards are unsecured or revolving credit, so ideally, you will need a credit card to optimize your credit score.

lrhall41

Submitted by desperatelyseekingsanity on Thu, 05/28/2009 - 14:36

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Joe - mortgage & car are enough! My score was 680 when I starte

Joe - mortgage & car are enough! My score was 680 when I started. I have settled 90k in cc debt in past 9 mos and my score is now 517.

lrhall41

Submitted by anonymous on Sat, 05/30/2009 - 08:04

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???? - Guest, your score has dropped to below POOR!! That's hor

???? - Guest, your score has dropped to below POOR!! That's horrible! The original OP wanted to know how to IMPROVE his score...he needs a mix of installment loans and unsecured credit in order to OPTIMALLY improve his FICO.

lrhall41

Submitted by desperatelyseekingsanity on Sun, 05/31/2009 - 06:40

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I'm guessing "Guest" meant that his/her score 680 with $90k debt

I'm guessing "Guest" meant that his/her score 680 with $90k debts but still good payment history and dropped to 517 as he/she stopped paying and CC companies started updating records...
what I'm wondering is if my FICO was above 720 and I stop paying and settled $180k within 5 months from first late/ no payment how much my FICO will drop and how long it takes to move up again

lrhall41

Submitted by anonymous on Mon, 06/01/2009 - 18:14

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You are correct Joe - your score will drop but do all the settle

You are correct Joe - your score will drop but do all the settlements as soon as you can and your remaining paid-on-time debts will gradually raise your score. I will take a 517 credit score and zero cc debt any day over a 680 score woth 90k cc debt. I now have 4k extra cash in my pocket each month!

lrhall41

Submitted by anonymous on Tue, 06/02/2009 - 05:15

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