Credit Cards Center Credit cards from our partners
Reply
Frequent Contributor
Posts: 332
Registered: ‎01-24-2014
0

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: Feb 2015 EQ: 615 TU: 650 EX: 643
Goal Score: Hoping to join the 700 Club this year!


Take the myFICO Fitness Challenge
Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
0

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.

Moderator
Posts: 22,605
Registered: ‎12-13-2013
0

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 Fico 08 BC 08/15: 798 (-8); EX Fico 04 V2 06/14: 775
EQ Beacon 5.0 12/14 757
TU Fico 8 08/15: 761 (+6)
Frequent Contributor
Posts: 332
Registered: ‎01-24-2014
0

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: Feb 2015 EQ: 615 TU: 650 EX: 643
Goal Score: Hoping to join the 700 Club this year!


Take the myFICO Fitness Challenge
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.