Rebuilding Your Credit

[Tischer712]

So my old repossession was reporting 120+ days late every month for the past 6 years. It was charged off in 2008. I contacted the company and agreed it was misreporting. On free credit report they were using the code RF every month. Which was counting as a late. Now they are reporting as KD and I guess it just means charged off. Having almost 60 late payments removed ( all from 2008 to last month) didnt even budge my score 1 pt. I was expecting some sort of change considering recent late payments are so damaging, and according to the report I have had 11 this year. Now it said I haven't had any, but no score change. Can anyone chime in?

[rckstrscott]

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Tischer712 wrote:
So my old repossession was reporting 120+ days late every month for the past 6 years. It was charged off in 2008. I contacted the company and agreed it was misreporting. On free credit report they were using the code RF every month. Which was counting as a late. Now they are reporting as KD and I guess it just means charged off. Having almost 60 late payments removed ( all from 2008 to last month) didnt even budge my score 1 pt. I was expecting some sort of change considering recent late payments are so damaging, and according to the report I have had 11 this year. Now it said I haven't had any, but no score change. Can anyone chime in?

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The last status was 120 days late on the account. It didn't mean that it was reporting NEW 120 day late payments, just that last status. In my opinion, no negative factors were removed. It was just recoded to look different.  Since the account was charged off, that is the negative factor being applied.

-scott

[Tischer712]

Ok. When I pulled myfico report yesterday, it shows the 30 day late and how many times and so on. When I get to the 90 day late, it said I had 63+. And listed all of the month, most recently october 2012. So when I applied for my mortgage, they turned me down because the repossession was reporting late monthly. I'm just confused on the terms. I want to see if I can post a picture of what it is saying

[Tischer712]

Balance [?] Current Status [?]

$3,785

Bad debt/collection

Seven year payment history [?]

30 days late60 days late90+ days late

3 times

2 times

62 times (Oct 2012, Sep 2012, Aug 2012, Jul 2012, Jun 2012, May 2012, Apr 2012, Mar 2012, Feb 2012, Jan 2012, Dec 2011, Nov 2011, Oct 2011, Sep 2011, Aug 2011, Jul 2011, Jun 2011, May 2011, Apr 2011, Mar 2011, Feb 2011, Jan 2011, Dec 2010, Nov 2010)

Recent payment history [?]

11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 102010 2011 2012

120 days late

Worst Delinquency [?]

120+ days past due

[rckstrscott]

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Tischer712 wrote:

Balance [?] Current Status [?]

$3,785

Bad debt/collection

Seven year payment history [?]

30 days late60 days late90+ days late

3 times

2 times

62 times (Oct 2012, Sep 2012, Aug 2012, Jul 2012, Jun 2012, May 2012, Apr 2012, Mar 2012, Feb 2012, Jan 2012, Dec 2011, Nov 2011, Oct 2011, Sep 2011, Aug 2011, Jul 2011, Jun 2011, May 2011, Apr 2011, Mar 2011, Feb 2011, Jan 2011, Dec 2010, Nov 2010)

Recent payment history [?]

11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 102010 2011 2012

120 days late

Worst Delinquency [?]

120+ days past due

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Well, I understand what you are saying. And if you were turned down for a mortgage because of the reporting, then obviously this was an important win regardless of the FICO score.

But a couple things to remember, that consumer credit reports, even myFico's reports, display information that may or may not impact FICO scoring. I totally see what you are looking at, and yeah, it def. looks like you had 62 late payments, but I suspect that the FICO scoring algorithm did not factor those as 120 late payments, which is why you didn't see a score move, because its still basing its negative scoring of this account on that last charge off, which is still relevant.

I am just guessing obviously, maybe a different set of eyes will have a better idea.

-scott

[Shogun]

KD is still a derogatory status.  So if they changed it from the lates to KD, it did nothing to alter your scores.  It's still a negative factor, same as if they had posted the lates.  KD = Key Derogatory.

[RobertEG]

The key is what they actually reported.

Furnishers have a statutory requirement to maintain the accuracy of their reporting.  It is standard to simply include, with subsequent reporting, a repeat of the currrent status, which can be its level of delinquency.  That is a postive statement by the furnisher that the status remains as previously reported. 

Thus, repeated delinquency status can go on until the status changes.

Quite different is the reporting of the occurence of a new delinquency with a new date.

Was their reporting of the current status, or of a new delinquency?

[Tischer712]

Current status. Account is closed and they aren't asking for payment anymore. I am more than thrilled they Removed the late status. I guess i was just hoping for a score change

[RobertEG]

Then continued monthly reporting of that status is proper.  It does not reflect a new delinquency, but merely a new snapshot of the same status.

[rckstrscott]

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RobertEG wrote:

Then continued monthly reporting of that status is proper.  It does not reflect a new delinquency, but merely a new snapshot of the same status.

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Which, to add to what Robert is saying, is why you saw no score movement. The negative scoring impact still exists on the account, even though you removed the appearance of lates.

-scott