Rebuilding Your Credit

[danny4l]

My 90 and 120 day student loan late's are scheduled to fall off my report in early 2017.  I know that 90 day lates hurt you the most but do they hurt your score for the whole 7 years the same way?

In other words, with a couple 90 and 120 day late's, will my score at least improve up until 2017?

[llecs]

It depends on your overall credit. Generally the damage of the lates will slowly fade. I have seen some posters say they've gained 40-50-60+ when removing that 90 or 120 due to the 7 yrs, when they had no other baddies reporting. It can hurt until the end. I'd GW now though.

[danny4l]

That is just terrible.  It's almost as bad as having a bankruptcy then.  Some people just declare the bankruptcy and don't pay their debts but for those of us who stick around to pay our debts, we really get punished for it.  Sure 7 years is better than 10 but you are still paying the whole debt back.

[RobertEG]

Their have been attempts, some successful, to shorten the CR exclusion dates based on payment of the debt.

NY state, for example, has enacted a shortened CR exclusion date of 5 years for paid collections.

[marty56]

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danny4l wrote:

That is just terrible.  It's almost as bad as having a bankruptcy then.  Some people just declare the bankruptcy and don't pay their debts but for those of us who stick around to pay our debts, we really get punished for it.  Sure 7 years is better than 10 but you are still paying the whole debt back.

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Not to worry though.  My score got in the 760's with a 120 day late on it and as far as I knew never impacted me in getting credit and interest rates based on my score alone.  I have a long (too long) credit history and high AAoA but it is still possible.

Never give up, loose hope and keep truckin.

[drkaje]

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RobertEG wrote:

Their have been attempts, some successful, to shorten the CR exclusion dates based on payment of the debt.

NY state, for example, has enacted a shortened CR exclusion date of 5 years for paid collections.

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It's a good law but should have been given a little more thought. Late payments reporting longer than paid COs really makes no sense, to me. A person  could strategically default and have their credit report clean two years sooner than they would with 1 late payment. I know COs are worse, simply addressing the duration of reporting.

[marty56]

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drkaje wrote:

Late payments reporting longer than paid COs really makes no sense, to me. A person  could strategically default and have their credit report clean two years sooner than they would with 1 late payment. I know COs are worse, simply addressing the duration of reporting.

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+1

I always thought 7 years was a tradition rather than a statistical fact.  LOL then again it could be related to the 7 year itch.

[drkaje]

@ Marty,

Someone posted a link (that was deleted) explaining it was rooted in biblical tradition.

[henchita]

I agree with drkaje, I am it the same situation I had excellent credit and due to financial and medical situations I became late on one bill, so now my score is 598, because of the 90 day late! I'm paying it but the damage on the credit is done. So it gets me thinking... why not file for BK? My credit is shot and I'm still paying it back? Obviously in the end I'm responsible for my debt but I had a small bump in the road, yet I'm not running away from it, and I'm still in the same position as someone who got all their debt wiped out. Doest really seem fair....

[DaveSignal]

I've got 4 charge-offs and a paid collection on my credit reports and am at 680+.  FICO score estimator predicts a minimum of 720 score if I just pay my bills on-time for 12 months.  My scores are not really predicatable in any way, but disputes and goodwills have given me much headache and caused undesired consequences and so I am just going to leave the derogs on there and pay my bills for 12 months.  They don't seem to hurt so bad when they get older as long as you have many current accounts paid on-time.