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Frequent Contributor
danny4l
Posts: 299
Registered: ‎05-24-2012

Please clarify the difference in the way lates affect your score...

My understanding is that 30 day lates are irrelevant after 2 years, 60 day lates are seen as 30 day lates after 2 years but 90's hurt you for 7 years.

 

My question is do the 90's hurt you for the same amount over the whole 7 years or do they affect you any less as time goes by?

 

 

Established Contributor
pakman92
Posts: 650
Registered: ‎03-01-2012

Re: Please clarify the difference in the way lates affect your score...


danny4l wrote:

My understanding is that 30 day lates are irrelevant after 2 years, 60 day lates are seen as 30 day lates after 2 years but 90's hurt you for 7 years.

 

My question is do the 90's hurt you for the same amount over the whole 7 years or do they affect you any less as time goes by?

 

 


I don't think "irrelevant" is not exactly true.  When I had my last 30 day late removed (over 5 years old), I got a good bump on the score.

 

 


My Starting Score: EQ: 691 (11/30/11) TU98: 726 (11/30/11)
My Current Score: EQ: 779 (04/22/13) TU08: 835 (06/03/13)
DW Starting Score: EQ: 742 (03/02/12) TU98: 748 (03/02/12)
DW Current Score: EQ: 784 (03/11/13) TU08: 775 (06/03/13)
Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007

Re: Please clarify the difference in the way lates affect your score...

Delinquencies decline over time, most likely at different rates based on their severity.  However, not having access to the guts of the FICO algorithm, all we can do is look at anecdotal experiences to get an idea of either their initial impact or rate of decline. 

 

I, too, had an old 60-late drop after 7 years, and it seemed to give a boost of around 5 points, but accounts aging and other factors also vary monthly, so it is next to impossible to attribute any one change from month to month directly to a total FICO score change.

Frequent Contributor
danny4l
Posts: 299
Registered: ‎05-24-2012

Re: Please clarify the difference in the way lates affect your score...

The way they make it seem is that 30 and 60 day lates are bad but they are the ones that improve over time.

 

They make it seem like the 90, 120, and 180 cause irreparable damage to your score for the whole 7 years.  I wanted to know if that was true or if they just improved much slower than the 30 and 60 day lates.

 

I mean the late should not be on the same level as a bankruptcy or lien.

Established Contributor
pakman92
Posts: 650
Registered: ‎03-01-2012

Re: Please clarify the difference in the way lates affect your score...


danny4l wrote:

The way they make it seem is that 30 and 60 day lates are bad but they are the ones that improve over time.

 

They make it seem like the 90, 120, and 180 cause irreparable damage to your score for the whole 7 years.  I wanted to know if that was true or if they just improved much slower than the 30 and 60 day lates.

 

I mean the late should not be on the same level as a bankruptcy or lien.


I think all of this is true.  However, when my report became 100% clean.  I got a good bump 20 pt or so.  It may have put me in a different bucket to have no lates or derogatories at all.

 

YMMV.


My Starting Score: EQ: 691 (11/30/11) TU98: 726 (11/30/11)
My Current Score: EQ: 779 (04/22/13) TU08: 835 (06/03/13)
DW Starting Score: EQ: 742 (03/02/12) TU98: 748 (03/02/12)
DW Current Score: EQ: 784 (03/11/13) TU08: 775 (06/03/13)

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