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).