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Re: fico- "paying past debts increase score." does settling also


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Posted by Christina (205.188.209.12) on January 14, 2003 at 15:45:36:

In Reply to: Re: fico- "paying past debts increase score." does settling also posted by jm10101 on January 14, 2003 at 12:43:34:

This was one of the "Negative Factors" given and an explanation.

Serious delinquency or derogatory indicators/remarks, and or collection information is being reported on your credit file.

"This score evaluates when there is a derogatory public record or collection agency reference, as well as one or more serious delinquencies on your credit accounts (60 days past due or more), appearing on your credit bureau report. Studies reveal that consumers with previous late payments are much more likely to pay late in the future.

However, as these items AGE AND FALL OFF the credit bureau report, their IMPACT ON THE SCORE will gradually decrease.

****There is no "quick fix" to improve the score if the derogatory public record, collection item, or serious credit account delinquency appearing on your credit bureau report is valid.

Bear in mind that satisfying or paying off the collection item or derogatory public record will not remove this information from your credit report. THE FACT THAT IT OCCURRED is still predictive of future repayment risk, so it will still be considered by the score."


The scoring is based on the fact that the delinquency/collection occurred, not whether it has or has not been paid.

Unless you negotiate "deletion" as part of satisfying the past debt, it has no "postive" impact on scoring.

Isn't that just ducky?


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