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Super Contributor
Posts: 5,759
Registered: ‎01-28-2008
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Which is worse... 120 days late or CO?

Is a 5 year old 120 days late less worse than a CO in general?  What affect both scenarios have on FICO scores?
Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
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Re: Which is worse... 120 days late or CO?

A CO is worse than a 120 day late. 

 

Any late is going to impact your score. 

 

 

Contributor
Posts: 89
Registered: ‎10-16-2007
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Re: Which is worse... 120 days late or CO?

At 5 years old a 120 day late is not hurting your score much at this point.  Maybe a few points or so.

 

A charge off is definitely worse than a late payment as it shows that instead of just being behind you decided to not pay at all.  Even if they are the same age a CO would have a bigger impact for both your score and on a manual review (in my opinion).


Scores June-09: EQ 798 TU-785
Scores Mar-09: EQ 792 (getting close) TU-782
Scores Feb-09: EQ- 786 EX- ??? TU-777
Scores Jan-09: EQ- 791 EX- 786 TU-765
Scores Aug-08: EQ- 786 EX- 779 TU- 737
Super Contributor
Posts: 5,703
Registered: ‎10-06-2007
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Re: Which is worse... 120 days late or CO?


vawt wrote:

At 5 years old a 120 day late is not hurting your score much at this point.  Maybe a few points or so.


I dont think that is true, can anyone speak to this from their own example.

11/28/2014 FICO: EQ: 796 EX:788 TU:803
Moderator Emeritus
Posts: 5,267
Registered: ‎03-18-2008
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Re: Which is worse... 120 days late or CO?

I had a small CO on my Equifax report that wasn't mine (a Verizon account - I never had Verizon).  It took years to get it permanently off my report.  As I recall, it didn't have a huge impact on my Equifax score, but I don't have any documentation to verify this anymore.
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Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
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Re: Which is worse... 120 days late or CO?


Lel wrote:
I had a small CO on my Equifax report that wasn't mine (a Verizon account - I never had Verizon).  It took years to get it permanently off my report.  As I recall, it didn't have a huge impact on my Equifax score, but I don't have any documentation to verify this anymore.

 

I could see that if you still had negatives on your account.  IMHO, getting any negative removed with negatives remaining is not going to help a lot.

 

In the order of sevrerity are: 30, 60, 90, 120+.  Then CO and/or collections, tax liens, settlement. repossessions/forclosures.

 

A 30 day late usually hurts the worse when it is the current month you are late, the hurt lessens with time unless you are consistently 30 days late.

 

The same for 60 days late.

 

90 days late will significantly damage your score. It does not matter whether you are currently 90 days late or not, it will continue to damage for up to 7 years.  The goal of the scoring model is to predict whether or not you will be late on other credit obligations.  By showing you have already done so the likely hood to do it again versus someone who has never been late will cause your score to drop.

 

120+ days late indirectly cause your score to drop.  At this point they are either CO or turned over for collections.  These additons to your credit file will cause a further drop in score.

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