Understanding FICO® Scoring

[JohnDoe12]

Hi,

I am looking at a report with late payments, yet it is not listed as derogatory. I would have thought any late payments are a derogatory indicator. So this leads me to the question, "What exactly does derogatory mean and what are derogatory indicators?"

Thanks,

JD11

[IOBA]

Good question.

How old are the lates?  6 yrs?  7 yrs?

Can you post a copy of the report, so we can see what you are looking at?

[JohnDoe12]

Accounts

Company Account number Date opened Balance Status Negative Indicator?

sears/citi		1/1997	$0	Pays account as agreed	No

  Sears/Citi Jan, 2011

Status as of Date opened  Date of last activity Largest past balance  Account Type  Account holder  Industry

Jan, 2011

Jan, 1997

Oct, 2008

$2,500

Revolving

Individual

All Banks

Descriptions

• Consumer disputes this account information
• Closed or paid account / zero balance

No contact information provided by Equifax

Balance Current Status

$0	Pays account as agreed

Seven year payment history

30 days late 60 days late 90+ days late

2 times(Aug 2008)

2 times(Sep 2008)

3 times(Jan 2008)

Worst Delinquency

120+ days past due

The Worst Delinquency reports the worst missed payment status that has been documented on this account. Your FICO® score evaluates how recently that missed payment occurred and in general, the more recent, the more impact it has on your score. However, the fact that it occurred is still predictive of future payment risk and could be considered by your FICO® score.

The original exquifax report shows 99 months reported with a streak of late payments ending in 2008.

Thanks,

JD12

[llecs]

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JohnDoe12 wrote:

"What exactly does derogatory mean and what are derogatory indicators?"

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FICO scores a number of aspects within a given TL. In your example, the "Worst Delinquency" and the lates make this TL a derog. Now your FICO reports don't use the term "derogatory". Could you be referring to the line item on the Credit At-A-Glance page of "Accounts with negative indicators"? If so, that number would exclude this TL because of the "dispute" comment within the TL.