Couple 60 day lates approaching 24 months

[Anonymous]

I have a couple 60 day lates approaching 24 months with 3 30 days since then but none in the last year.   Any anecdotal evidence for a score increase when those 60's age past two years?

[RobertEG]

My experience.

Most on here seem to report that they see 60-day lates being scored, after two years, at approx the same level as if they were now 30-day lates.

You could show a gain, if they are thereafter scored the same as if they were only 30-day lates, of maybe up to 10  combined points, max.

Assuming the above is true, the greater remaining impact on your current scoring is, in my opinion, the three more recent 30-day lates, which currently have aged substantially less than two years, and thus negatively afftecting your scoring now more than the older, 60-day lates.

And the later 30-day lates will stay on your CR longer than the 60-day lates, and probably have also now already acted to reset your DOFD on the accounts, since they were apparently brought back into good standing, and a new chain of delinquencies began.  So take that into account if any CO or CA later posts.

As a final issue, the 60-day lates may also still affect your "bucketing," even though they are now two years old.

Before FICO even applies a specfic mathematical scoring formula to produce your score, they go throug a logic tree analysis to determine which of the approximately 12 scoring algorithms that form their basic package will be used for your specific history. Those are what we call "scoring buckets." 

No one can tell you the bucketing logic used by Fair Isaac.  It is unpublished.  I know that one of the major factors in your bucketing is what credit scorers call a "clean" of "dirty" credit file, with a "clean" file have no derogs, or only minor, 30-day derogs.  Continued presence of the 60-day lates in your credit file may keep you in a "dirty" scoring bucket, impeding your score increase quest.  I have seen a lot of people say that their scoring algorithm shows some increase when a 60-day derog passes two years, but I have never seen anything to show that this also can move you from a "dirty" to "clean" scoring bucket determination.

[RobertEG]

If I were to read what you provided on your CR from the viewpoint of an existing or potential creditor, disregarding for a moment credit scoring, this is what I would see.

And I think it is encouraging.

Your payment risk on the two accounts was under serious question beginning two years ago, and up to a year ago. 

On one account, you went 30-days late, then 60-days late. 

On the other account, you also went 30-days late, then 60-days late.

While both of these accounts were apparently brought back into paid status (they would have to have been for a new 30-day late to be reported), you apparently had three more 30-day lates on those accounts in the period from 0-1 year ago.  That amounts to 7 separate derogs reported in one year.

Then, at about a year ago, you apparently brought these accounts back, once again, into paid, good standing status, and have had no derogs in the past year.

What that would say to a creditor is that you hit a short-term bump in the road about two years ago, but continued to strive to meet your debt, and for the last year, have met all payments.

I know this may be a little off the subject of your post, for your post only involved the "today"  impact of the passage of 60-day lates to a two year mark.

But FICO is not just a today thing.  FICO has meaning only on the tomorrow when you need the score in an actual credit app.

Right now, you are doing a great job of credit repair on your payment history!  Well on the way to recovery. 

So please dont take this as a negative post.

All, I guess, I am cautioning is that if any new chain of delinquencies occurs in the future, your past two year history may make them quick on the trigger to do a charge-off or collection referral.  Prompt future payment is, in my opinion, even more important now than in the past.

And the longer your string of timely payment occurs into the future, the better you chances of making a GW appeal to them for removal of some of those derogs prior to their 7-year normal fall-off date.