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When a late payment gets older, is it put into a different scoring "bracket?"

Frequent Contributor

When a late payment gets older, is it put into a different scoring "bracket?"

I keep hearing that late payments that are three years old or more are not "current lates."

 

What does this mean?

 

I also keep hearing that 180 day lates will affect your score for the full seven years that they are on your file.  I know late payments hurt your score less as they age but is there any truth to the idea that late payments fall into different "scoring brackets" as they get older and older?

 

It would be nice if my 180 day lates were not used against me three or four years into the seven year period.

Message 1 of 9
8 REPLIES
Epic Contributor

Re: When a late payment gets older, is it put into a different scoring "bracket?"

30 and 60 day lates are minor derogatories and the impact of those generally have no affect after 2 years.  These lates may be overlooked by lenders as not being current lates.

 

Anything 90 days and older a major derogatories and will impact your score for nearly 7 years.  Even though the impact may lessen with time they are still scored against you as long as they are on your report. 

 

As for the scorecard or bucket, I believe you stay in the major derogatory bucket until they are gone.

Message 2 of 9
Frequent Contributor

Re: When a late payment gets older, is it put into a different scoring "bracket?"

Does "major derogatory" mean no new credit?

 

I guess what I'm asking is I'm trying to figure out what I can and cannot do with these "major derogatories" while they are reporting.

Message 3 of 9
Regular Contributor

Re: When a late payment gets older, is it put into a different scoring "bracket?"

Have you tried writing a GW letter to get them removed?


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Message 4 of 9
Frequent Contributor

Re: When a late payment gets older, is it put into a different scoring "bracket?"

the 180 day lates are student loan lates with Sallie Mae.  They said there is no way in hell they will be removed.

 

 

Message 5 of 9
Epic Contributor

Re: When a late payment gets older, is it put into a different scoring "bracket?"

Being scored by FICO is one thing, what a creditor may or may not think is something else. 

 

Some creditors will approve or deny on score alone while others will do the same by actually looking at your report and determining your credit worthiness.  What one creditor may say is old, another may not.

 

Everything about credit, obtaining and maintaining, is a YMMV thing. 

Message 6 of 9
Frequent Contributor

Re: When a late payment gets older, is it put into a different scoring "bracket?"

Do all CC companies go by the computer or will a human manually review your file?

 

It seems like wherever you go for a CC, it's all about a computerized decision--at least the initial decision.

Message 7 of 9
Moderator Emeritus

Re: When a late payment gets older, is it put into a different scoring "bracket?"

It depends on the creditor.  Sometimes they use an UW, sometimes it's just an automatic computer assessment.  If denied, you can always call for a recon.

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Message 8 of 9
Highlighted
Frequent Contributor

Re: When a late payment gets older, is it put into a different scoring "bracket?"

What exactly do you tell them when you call for a reconsideration?

Message 9 of 9