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Regular Contributor
MortgageMinded
Posts: 178
Registered: ‎01-24-2014

Defining Delinquency

[ Edited ]

I was checking a score simulator and it asked if I had any delinquencies.   Here is my current situation.

 

1)  State Tax Lien (Paid)

2) Auto Loan (Charged off) Balance Remaining 

3) Cell Bill 1 (CA) - Reporting me late monthly

4) VISA card (CA) - Reporting me late

5) Cell Bill 2 - (CA) - No Activity since 2012

 

SO...... Is the delinquencies being held against me the Cell Bill 1 and Visa card as they are reporting me late monthly?  I was never notified of this.   Once I pay those off (settle), will my score get a bump even though they are collections reporting delinquencies?

 

I just want to make sure I understand the term Delinquency versus Derogatory, any advice is greatly appreciated.


Starting Score: Jan 2014 EQ: 595 TU: 575 EX: 550
Current Score: May 2014 EQ: 623 TU: 644 EX: 600
Goal Score: 650


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Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008

Re: Defining Delinquency

A delinquency and a derogatory are essentially the same thing.

 

If you are 30 days late on an OC account, that is a delinqency, therefore the account is in a derogatory status.

 

A CA is a derogatory account because it is a collection and they cannot report monthly delinquencies.

 

Out of the ones you have listed, if it really intends to mean a late payment, and the CO'd auto loan is still reporting monthly lates, I would say that would be it.  Even if you paid the balance, it would still report the lates.

 

Paying a collection account should have no impact on your score, either up or down.

Valued Contributor
gdale6
Posts: 8,548
Registered: ‎12-13-2013

Re: Defining Delinquency


MortgageMinded wrote:

I was checking a score simulator and it asked if I had any delinquencies.   Here is my current situation.

 

1)  State Tax Lien (Paid)

2) Auto Loan (Charged off) Balance Remaining 

3) Cell Bill 1 (CA) - Reporting me late monthly

4) VISA card (CA) - Reporting me late

5) Cell Bill 2 - (CA) - No Activity since 2012

 

SO...... Is the delinquencies being held against me the Cell Bill 1 and Visa card as they are reporting me late monthly?  I was never notified of this.   Once I pay those off (settle), will my score get a bump even though they are collections reporting delinquencies?

 

I just want to make sure I understand the term Delinquency versus Derogatory, any advice is greatly appreciated.


To score simulators they are basically the same thing, in the real world one would be delinquent if there is an unpaid balance and it becomes a derogatory once its paid. Paid COs & CAs are no better than unpaid, score may in fact drop when they report paid if they have not updated in awhile. Deal with the OCs on those cell bills not the collecting CAs, search your states website and see if you can file a lien withdrawl for that paid state tax lien if allowed and its granted the liens are off your CRs.

EX Cred Ses 07/14: 770 ; EX Fico 04 V2 06/14: 775; EX Fico 08 07/14 778 ; EX Fico 08 BC 07/14: 800
EQ Fico 05/14 781 ; EQ MPM 07/14: 738
TU Fico 8 07/14: 719; TU MPM 06/14 706
Regular Contributor
MortgageMinded
Posts: 178
Registered: ‎01-24-2014

Re: Defining Delinquency

Do you think I have a leg to stand on with the Cell OC since it's been over a year?


Starting Score: Jan 2014 EQ: 595 TU: 575 EX: 550
Current Score: May 2014 EQ: 623 TU: 644 EX: 600
Goal Score: 650


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