Author Topic: What is the impact of payments on CK score?  (Read 1051 times)

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tijuanasam

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What is the impact of payments on CK score?
« on: February 07, 2016 03:44:35 AM »
Hey all...I've been reviewing my scores (mid 500's) on Credit Karma for a couple months now & it appears that it's primarily my payment history that's killing my scores. The missed payments will all hit the 3 year mark in March of this year & I was wondering if, at 3 years, they may not be calculated in anymore. Does anyone know how long that payment hx is going to haunt me...am I stuck w/it for the full 7 years, or does it get less important w/time?

All the TL's won't budge...they're mostly federal student loans & all attempts at fixing the lates have failed unfortunately.

cgoodwin

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Re: What is the impact of payments on CK score?
« Reply #1 on: February 07, 2016 03:53:55 AM »
If they are over three years, they are holding you down. It's likely lack of current credit. Now may be time for a small secured card to get the numbers going up again.
If you think this is legal advise.......
ask yourself why I wasn't smart enough to avoid this myself?!?

excelsior

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Re: What is the impact of payments on CK score?
« Reply #2 on: February 07, 2016 09:38:36 PM »
Hey all...I've been reviewing my scores (mid 500's) on Credit Karma for a couple months now & it appears that it's primarily my payment history that's killing my scores. The missed payments will all hit the 3 year mark in March of this year & I was wondering if, at 3 years, they may not be calculated in anymore. Does anyone know how long that payment hx is going to haunt me...am I stuck w/it for the full 7 years, or does it get less important w/time?

All the TL's won't budge...they're mostly federal student loans & all attempts at fixing the lates have failed unfortunately.
Credit Karma scores aren't the real scores.  FICO scores are what you want (because no lender uses Credit Karma scores), and there is a decremental punitive effect at the 6 month mark, 1 year mark, 24 month mark.  Those are where the negatives tend to "fall off" in terms of severity to score.

Remember that Credit Karma is deliberately depressing their score in order to market subprime products to you; that is their business model.  This is why it is important to get the real FICO scores. 

In my experience, if there are no accounts in collections on a credit report, the algorithm shifts to evaluate utilization, i.e., the major factor lowering a FICO score at that point is how much of the available balance is being used.  I have found that at 1-2% of utilization, FICO scores shoot up by more than 90 points (depending on what else is in the file).

cgoodwin

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Re: What is the impact of payments on CK score?
« Reply #3 on: February 08, 2016 12:17:49 AM »
If they are over three years, they are not holding you down.

That should have been not.  As excelsior said, the score may not be accurate, but it does serve as a good barometer for trends.  As it goes up and down, your FICO will track similar. Not exactly, but similar. 

And since the model switches to utilization, you will need an open card to show available credit.  That is why I recommend a small secured card.  But do not use it, or it will effect the util number.
If you think this is legal advise.......
ask yourself why I wasn't smart enough to avoid this myself?!?

tijuanasam

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Re: What is the impact of payments on CK score?
« Reply #4 on: February 08, 2016 11:46:26 PM »
Excellent advice, thank you both!

 

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