@morganfofo wrote:
According to http://rebuildcreditscores.com this is the case. It states that the effectiveness it has on your score goes from 40% the first twelve months to 30% the next, then 20%, so on and so forth.
Does anyone have any input on this? Is it accurate info?
Like any one-size-fits-all answer, this is inaccurate. Also there's the issue with bucketing which is completely discounted in their analysis (which admittedly is pretty complicated, but basically certain derogatories limit your max scoring potential).
I don't know any specific breakpoints and it'd be awfully hard to know through anecdotal data as we don't have access to the algorithm; however, minor derogatories fade pretty quickly (2ish year time frame) but serious derogs (90/150, tax liens, bankruptcy, similar) pretty much hammer the score for as long as they're on there.
That's true with all of the older models; newer ones like FICO 8 seem to have changed this a little bit where older derogs don't hurt as badly, but newer ones are a bigger slap.
From my own datapoint, I had a federal tax lien tacked on to my report in 11/13; my 715-720 FICO 8 scores went straight to a 660, and my Beacon 5.0 (FICO '04) only dropped from 665 to 660. The datapoint I had was a tax lien from 2010 on all three reports, and incidently a really old tax lien on both EX/TU which were my FICO 8 scores listed above anyway.
To add to this since the tax lien was on there for a bit of time, my scores started to diverge from their near identical state around the 6 month mark with the FICO 8 scores being markedly higher than my Beacon 5.0 at the time. Course now that that tax lien is gone my FICO 8's have recovered and my Beacon 5 is still stuck ~670.
