Understanding FICO® Scoring

[Quest76]

Hello,

On my Experian and Equifax reports, I have a Bank of America account that shows late payments taking place within the last 10 months, while the account had a last activity date ranging from Nov 2002 to Aug of 2003 (the 2 reports varied). 

I don't understand how someone can be late on an account 3 - 4 years after it had been charged off.  My credit reports that I had received directly from those credit bureaus do not reflect those recent lates, only the myFICO reports do, and I have a feeling that these recent lates are negatively affecting my score.

I spoke with a rep of yours a few months back and he had told me that those recent lates are very likely hurting me, and he suggested that I dispute with the credit bureaus directly.  Although they were not showing on the credit bureaus reports, I followed that advice.  The reports came back looking the same (without those lates), but they are still showing on the myFICO reports.  

(Equifax ended mixing mine and my brothers files which dropped my score further, but that's another story).

My question:  Can you guys remove the lates that had taken place AFTER the last activity date, especially when those lates are not even showing on the credit reports issued by the credit bureaus directly?  

Thank you for your anticipated help and for opening up this type of dialogue with your customers.

[Tuscani]

Legally they can report that way if the CO is not yet paid because technically it IS still past due.

[2IMPROVE]

I noticed the same thing on my Experian, the last activity on my charge-off was 2002 as well.  I just sent a dispute letter to Experian last week regarding this.  Will see how they respond.

[Quest76]

Tuscani,

Question... they can legally report something as 90 days past due when it's more than 1,800 days past due?  Wouldn't 90 days late imply that a person stopped paying an account just a few months ago?  As most in this forum know, recent negative activity is much more damaging to the FICO score than older negative activity.

If the credit bureaus themselves are not reporting it as 90 days late in December of 2006, why is Fair Isaac? 

If your answer is the same:  "because they can legally do it,"  you may be right, you may be  wrong...  it would probably take a legal precedent from a judge to clarify that argument.  But that's not my point.  My question is... why would they go through the trouble of changing the credit bureaus reporting knowing full well it will artificially lower my score? 

For example, if slapping someone was legal, why would someone want to slap another person to begin with?...  simply "because it's legal?"  Something may be legal, but it if causes harm to another person and can be justified as "legal", well then that's just malicious, plain and simple. 

[Tuscani]

depends.. are the lates reporting EVERY month, or just reporting after the DOLA?

[Quest76]

Tuscani,

My EXPERIAN report directly from EXPERIAN reads:

30 days as of Feb 2003....  then 60, 90, 120, 150, 180, C/O follow right after.  No more "late payments" from that point.

My EXPERIAN report from myFICO reads:

30 days late  -  6 times

60 days late  -  1 time

90+ days late - 3 times (Dec 2006, Sep 2006, Oct 2003)

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All I've asked was for Fair Isaac to remove those dates next to the 90-day late field?  EXPERIAN does not even have those lates.  The Fair Isaac rep told me I would have to dispute it with the credit bureaus directly... I did... the credit bureaus came back with the same info that they've always had, WITHOUT those lates.  Fair Isaac took it upon themselves to add those dates.

This is done with EQUIFAX as well.  The only one that is reported accurately is TRANSUNION, which also happens to be my highest score. 

[Noah_Bodie]

DW is experiencing the same thing. A paid collection showing on all 3 CRs (paper copies from the CRAs as well as MyFico ScoreWatch) is showing no lates reported anywhere--except on her MyFico EX report. Paper copy of her EX report shows no lates reported on this TL. Her EX FICO is 70 lower than her TU FICO. These phantom lates appears to be the principal contributors.

[Tuscani]

Interesting...

Fair Isaac can't make changes to your reports. But there is something obviously wrong here.

I will see what I can dig up.

[2IMPROVE]

I called Experian today regarding this, and was informed that I need to contact the creditor.  She said that I previously disputed the item and it proved to be valid.  I told her at the time the status did not say what it says now " Charge Off/Now paying".

She was very short with me and said I needed to contact the creditor.  I sent a certified DV letter to the creditor today.

Message Edited by 2IMPROVE on 07-06-2007 02:37 PM

[dazednconfused]

Sorry for the late chime in, but I would like the answer to OP's question also.  I have the same issue with the way charge-offs are reporting.  Another issue, although it is similar is that I have accounts reporting as currently derog, although they are paid in full and closed.  How in the world can it be currently derog if there is no balance owed?  Very odd.  I hope Tuscani can figure this out for us...

[Skiffy]

Even after an account's charged off, there's still a delinquent balance owing. It is common to continue to get late payment reports after the fact of charge-off. Note that charging off is really only for accounting purposes; the bank no longer gets to count that amount on the asset portion of its balance sheet but instead has to expense it.

However, this doesn't change your relationship to that debt at all.

[dazednconfused]

Yes, that would be technically true if a balance was still owing.  However, if the balance is paid, then there is no balance owing and the account should read paid/closed.  Status should not read derog as it makes the reader assume that the account is currently derog when in fact it could have been paid out 2-4 years prior.  I have yet to figure out who places the derog status on the accounts, but I think it is the CRA's. 

[Quest76]

Hi Tuscani,

Just following up: 

In my email dated 7/6/07 @ 9:25am I explained how Fair Isaac added those recent dates of being 90 days late on the myFICO Experian report (whereas Experian directly does not show those recent dates).

In your email dated 7/6/07 @ 1:23pm you mentioned that Fair Isaac cannot add information, but that you were going to look into this.

Just checking to see if you've gotten any feedback about this?  Thanks Tuscani.

[Skiffy]

Based on information I got from Experian while in a lawsuit with a 3rd party, while the Metro2 format does cover "Paid, was a chargeoff," not even Experian's data is rich enough to cover this in the consumer reports they issue. I can only hope it's a planned upgrade.

[dazednconfused]

Wow, that bites.  I hope that is in the planned upgrade.  I mean, for cyring out loud, you pay the charge off, zero balance the account and it's still reported as derog.  So much for accurate reporting....

[Noah_Bodie]

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dazednconfused wrote:

you pay the charge off, zero balance the account and it's still reported as derog.  So much for accurate reporting....

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It is accurate. A paid CO is a derog.

[dazednconfused]

Apparently.  But it sure doesn't seem right to me.  How are you supposed to get ahead when you do the right thing?  BTW Noah, do you know how long it will stay on your report?  From the date of the CO or the date that you paid the CO?  I do hope it is from date of charge off or first delinquency...

[Noah_Bodie]

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dazednconfused wrote:

Apparently.  But it sure doesn't seem right to me.  How are you supposed to get ahead when you do the right thing?  BTW Noah, do you know how long it will stay on your report?  From the date of the CO or the date that you paid the CO?  I do hope it is from date of charge off or first delinquency...

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This is something I often rant about, and I'll take the opportunity to do so again.

Never pay a collection or chargeoff, unless:

a) You have to (served with a summons and complaint or you think they will, Prime mortgage lender won't give you a home loan until you PIF the CO or COLL, et al.)

b) You get them to agree to PFD

They prey on a person's lack of knowledge. You, me, and many others have been stung by this. Talked to too many people who've seen paid COs and paid COLLs drop from their CRs and they've seen big score improvements. It is complete B.S. to believe a paid CO or COLL does you any good. It is complete B.S. to believe that simply paying a CO or COLL does you any good.

Paying a CO or COLL does not change the CRTP. Still drops 7 years, give or take 180 days, from DOFD.

If it is now paid, try a GW letter to the OC.

If it was settled for less than the full amount, then methinks one has grounds to pursue a PFD still.

[dazednconfused]

Yeah, unfortunately, I didn't know what I know now and stumbled onto this site and others after I refi'd my mortgage in May.  Had to pay some of them off, otherwise no go on the loan.  Sucks big time for me...............

[Calamity]

Lates always help your scores!

[Noah_Bodie]

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Calamity wrote:

Lates always help your scores!

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I beg your pardon?

[fused]

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Noah_Bodie wrote:

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Calamity wrote:

Lates always help your scores!

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I beg your pardon?

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I wish I could say it looks like a typo!

[Revike]

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fused111 wrote:

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Noah_Bodie wrote:

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Calamity wrote:

Lates always help your scores!

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I beg your pardon?

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I wish I could say it looks like a typo!

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It is a typo: e-l-p should have been u-r-t. Only three letters mistyped. Very common mistake ...

[Tuscani]

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Quest76 wrote:

Hi Tuscani,

Just following up: 

In my email dated 7/6/07 @ 9:25am I explained how Fair Isaac added those recent dates of being 90 days late on the myFICO Experian report (whereas Experian directly does not show those recent dates).

In your email dated 7/6/07 @ 1:23pm you mentioned that Fair Isaac cannot add information, but that you were going to look into this.

Just checking to see if you've gotten any feedback about this?  Thanks Tuscani.

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I suspect it is a display error with the new report format. Assuming that is the case, your scores shouldn't be affected.

[Noah_Bodie]

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Revike wrote:

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fused111 wrote:

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Noah_Bodie wrote:

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Calamity wrote:

Lates always help your scores!

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I beg your pardon?

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I wish I could say it looks like a typo!

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It is a typo: e-l-p should have been u-r-t. Only three letters mistyped. Very common mistake ...

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Wish I could say I agree, but I suppose I'm just going to have to set charges and blow the bridge before any more crawl out from under it.

[jack0409]

I am having the same problem (90 days late shows up multiple times on FICO report, but not on underlying report from Experian).  Were you able to resolve this?  If so, how?

[cbjn1103]

Prior to my eailer post today, I searched the forums and I am still searching the forums for an answer to my post.

This is a copy of your post to the op

___________________________________________________________________________________

Quest76 wrote:

Hi Tuscani,

Just following up: 

In my email dated 7/6/07 @ 9:25am I explained how Fair Isaac added those recent dates of being 90 days late on the myFICO Experian report (whereas Experian directly does not show those recent dates).

In your email dated 7/6/07 @ 1:23pm you mentioned that Fair Isaac cannot add information, but that you were going to look into this.

Just checking to see if you've gotten any feedback about this?  Thanks Tuscani.

your post back to the op was:  I suspect it is a display error with the new report format. Assuming that is the case, your scores shouldn't be affected.

__________________________________________________________________________________

According to my scorewatch that I purchased today, it said that one factor hurting my score was one late payment within the last 7 months. Cap One is the only one showing a late payment in that time frame. I only have one other late payment, that was to JC Penny over five years ago and it was a 30 day late.

Also, since this cap one acct is co and closed, dola was 05/2002. How can you be late on a closed account?

I read over the FCRA and it states that if neg. info is reported, they must notify you within five days.

[jeno]

If you pay off a chargeoff in its entirety will this help your credit score?

[llecs]

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jeno wrote:

If you pay off a chargeoff in its entirety will this help your credit score?

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Likely no, but it depends on a couple of factors. For example, if it were a CC and that CO'd CC factored into CC utilization in a negative way, then paying it off could help your utilization and that alone can help your FICO. Conversely, if it were a CO'd CC and maybe it was CO'd because someone forgot about an annual fee, and that CC helped your util, then paying it off would increase your overall util and that can hurt your score. Another factor is the status. If it were just CO'd with no payments and had an active status of a CO, then paying it off would change the status to "was a CO" and some have seen slight improvements. It depends on when it reported last. If it were an older CO, then likely no change. If it just CO'd this month and was paid, then there might be room for a score improvement when it updates next.