When accounts expire off your credit report, without being settled/paid, does your credit score increase?
Mar, 2010 in Build Your CreditThe title pretty much covers my question. I’m curious, because I have about $7000 in medical debt expiring off my credit report in Feb. and I am wondering how it will affect my credit score?
Medical debt never expires off of your credit report. Debt and judgments never just expire off of your credit report. All those have to be paid for them to come off of your credit report. The only way to better your report is to pay off all those debts.
Only the things you’ve paid off that are 7 years old will come off of your credit report and those inquiries made too will come off of your report. Revolving accounts that you continue to use will stay on the report.
Suddenly you’ll become a great one to lend money to so look forward to lots of almost free money coming your way.
Well aside from the wrong answers and insulting remarks made so far, let me inform you that YES your score will increase.
Medical debts are no different then any other debts, they are removed after the 7 1/2 year reporting period ends and nothing can place them back on ones report.
Read the source I have referenced to find the true answer. I do not pull answers out of a hat and do provide a source.
Hope this helps answer your question.
Difficult to say, the affect of those charge off’s on your FICO scores count less and less as they age, Ironically, I’ve seen people lose points since those charged off account are scored as part of your length of credit history,, so when they fall off you’ll lose 7-years worth of credit history, even if it was not good credit history,
That could drag your scores down, if you have a lot of new accounts, your AAoA will drop due to a shorter credit history,,
The CO’s hurt more when they are first reported, by the time they’re 5-years old, they aren’t weighted at all, they look ugly on there, but they aren’t hurting your scores much at 7,
As long as you don’t have any other late payment’s reporting and aren’t carrying more than 40% balances on your credit cards, and you have a decent credit mix, time is the only thing that’ll heal bad credit,
You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – creditreport.imess.net
Your FICO score MAY/MUST increase. It really depends on what else is on there. Your FICO score is based solely on what’s on your credit report. When unpaid accounts pass the credit reporting time period ( 7 yrs from date of first delinquency), they no longer factor into the equation.
If that was the only bad mark on your reports, you’ll get a significant increase.
If you have other derogatory items, well, you will likely get an increase although it might not be that much if you have more recent bad items. Recency plays into the equation and bad marks within the last 2 years have the biggest impact. After 2 yrs passes, they have less impact.
I would say plan on getting a rise in your score. No one can say how much since the FICO scoring model is akin to “black magic”. Things like your amount of current credit debt vs total credit limit, age of your oldest account, average age of all accounts, etc, all play a huge role in determining the score.