Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
BoostedStig

0 Contributions
0 People Helped
What can I expect when a bad car loan gets removed from my reports?
Back when I was younger, I was in a situation where a car that I financed was wrecked and I owed more than it was worth on insurance, there was no gap insurance to cover it.

Long story short, I ended up having the balance of that car loan go to collections for about $3,800.

Fast forward to today. I have a few relatively small limit credit cards with clean histories for a handful of years, my student loan history has always been clean, I have had two other auto loans, one that was always clean 2 years until I traded that car for the 2nd loan and that has always been clean as well (about 2 years.)

My question is this. The original auto loan balance is on my report as charged off. The collections account for that charged off loan and the original loan account are the only two major negatives on my report. They are both set to reach age to fall of in the next 60-90 days. How much will this impact my score? I've read stories of people who's scores haven't moved at all and some who have had their scores skyrocket. I don't get it.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
5038 Contributions
1136 People Helped

Negatives lose the damaging power as they age, so once they are seven years old they have lost a lot of their punch, but you still should see a nice little boost once they are gone, just don't get your hopes to high. Please let us know what happens when they are gone. Do some reading on EARLY EXCLUSION if you haven't done so yet, you may be able to get them removed right now.

Top Contributor
227 Contributions
88 People Helped

Helpful to 0 out of 1 people

it's anyones guess really. my personal experience: i had a collection fall off my TU report last month. my vantage 3.0 score score jumped 60 some points. my FICO 8 score barely budged 5 points. all else was equal in my case. this leads me to believe that different models view things a bit differently over time. 

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.