Paid In Full Loan-- Updated Reporting Says 120 days Past Due

[ItsCASHual]

Just as the title says....I paid in full an old installment bank loan to zero balance. Yes it was 120 days past due at the time but it was not charged off or in collections. I'm wondering if it is reporting correctly. Specifically the "payment status" of 120 days late. It is not 120 days late now. On other paid in full loans/accounts on my CR, it says payment staus "current" even though they are zero balance and closed accounts. Do I need to get them to correct this?

Here's exactly what it says...

ABC Bank

Current balance: Zero

Payment Status: 120 days late

Account type: unsecured loan

Remarks: Closed Acct. Paid in Full.

Is it hurting me because it says 120 days late instead of current? Or not, because it is still showing as zero balance, paid in full. It was closed upon my final payment.

[Jnbmom]

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@ItsCASHual wrote:

Just as the title says....I paid in full an old installment bank loan to zero balance. Yes it was 120 days past due at the time but it was not charged off or in collections. I'm wondering if it is reporting correctly. Specifically the "payment status" of 120 days late. It is not 120 days late now. On other paid in full loans/accounts on my CR, it says payment staus "current" even though they are zero balance and closed accounts. Do I need to get them to correct this?

Here's exactly what it says...

ABC Bank

Current balance: Zero

Payment Status: 120 days late

Account type: unsecured loan

Remarks: Closed Acct. Paid in Full.

Is it hurting me because it says 120 days late instead of current? Or not, because it is still showing as zero balance, paid in full. It was closed upon my final payment.

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As far as I know the 120 day late will remain on the account as you have that history of the late unfortunately . Although I don't believe that should be current status.

[gdale6]

Status should be current was 120 past due, unfortunately it will hurt the entire time its on file as anything past 60 days is a major derog.

[ItsCASHual]

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@gdale6 wrote:

Status should be current was 120 past due, unfortunately it will hurt the entire time its on file as anything past 60 days is a major derog.

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So should I file a dispute and say it is current? I understand it is a major derog on there but when I paid it to zero I actually gained some points.

[Anonymous]

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@ItsCASHual wrote:

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@gdale6 wrote:

Status should be current was 120 past due, unfortunately it will hurt the entire time its on file as anything past 60 days is a major derog.

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So should I file a dispute and say it is current? I understand it is a major derog on there but when I paid it to zero I actually gained some points.

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I would give it another cycle to update. 

I know you said it was not CO'd, but sometimes these things take a couple updates to get straightened out.

If nothing happens after then next update, I would call the creditor before putting disputes in to see if they can assist.

[ItsCASHual]

Thanks for the info from all. This updates at the beginning of the month so I will check again in the November reporting cycle.

[Anonymous]

@ItsCASHual It depends on the fields: the Payment Status Field shows the highest delinquency ever on the account & should say 120 days.

Current Status Field should show Paid, since its been paid. Last Updated Field should be the date of last update after you paid.  

[Anonymous]

@ItsCASHual So yes it appears correct. And yes, the late will hurt you for 7 years. You should get some points back at 6 months, 12 months, 24 months when you reassign scorecards, and then when it drops at 7 years.

[RobertEG]

I agree with Birdman

The CRA reporting manual, titled the Credit Reporting REsource Guide, provides several different codes for recording both current an prior delinquency status levels.

The Payment Rating status for a paid account is stored to save the level of dellinquency at time the debt was paid, and thus returned to a non-deliquency status.

The Current Status is only a snapshot of the delinquency status as of the date reported, and once paid, we be one of the non-delinquency status codes, such as Paid, or Paid/Settled for Less.

The Payment History Profile stores the level of delinquency  for prior months.

You are apparently reading the Payment Status, which would be the 120-late delinquency level when the debt was finally paid and removed from delinquencystatus.  That would be accurate.