Do Late Payments Have Less Effect on Closed Account??

[theheater30]

Do recent late payments have less of an effect after the account is paid and closed?

The reason I ask is because I had a car totaled last year, gap insurance took about 9 months to pay off the last 3k owed on the car so I accrued some 30 day late payment remarks on my credit. The account was finally paid off by gap in August 2015 and closed.

Just recently I was able to get those late payments removed.... there were 3 from last year. I only have 1 other late payment on my report.

However after those late payments were removed my score did not even go up by 1 point!! I even pulled all 3 reports, the change is reflecting on my credit but no movement in my score.... Grrr is there a reason why? I have 0 collections, liens, charge offs, or judgements so I thought the late payments were having a larger impact on my score.

[theheater30]

Do recent late payments have less of an effect after the account is paid and closed?

The reason I ask is because I had a car totaled last year, gap insurance took about 9 months to pay off the last 3k owed on the car so I accrued some 30 day late payment remarks on my credit. The account was finally paid off by gap in August 2015 and closed.

Just recently I was able to get those late payments removed.... there were 3 from last year. I only have 1 other late payment on my report.

However after those late payments were removed my score did not even go up by 1 point!! I even pulled all 3 reports, the change is reflecting on my credit but no movement in my score.... Grrr is there a reason why? I have 0 collections, liens, charge offs, or judgements so I thought the late payments were having a larger impact on my score.

[Anonymous]

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@theheater30 wrote:

Do recent late payments have less of an effect after the account is paid and closed?

The reason I ask is because I had a car totaled last year, gap insurance took about 9 months to pay off the last 3k owed on the car so I accrued some 30 day late payment remarks on my credit. The account was finally paid off by gap in August 2015 and closed.

Just recently I was able to get those late payments removed.... there were 3 from last year. I only have 1 other late payment on my report.

However after those late payments were removed my score did not even go up by 1 point!! I even pulled all 3 reports, the change is reflecting on my credit but no movement in my score.... Grrr is there a reason why? I have 0 collections, liens, charge offs, or judgements so I thought the late payments were having a larger impact on my score.

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That's a good question. Hopefully someone would respond to this post.

[Anonymous]

Do recent late payments have less of an effect after the account is paid and closed?

The reason I ask is because I had a car totaled last year, gap insurance took about 9 months to pay off the last 3k owed on the car so I accrued some 30 day late payment remarks on my credit. The account was finally paid off by gap in August 2015 and closed.

Just recently I was able to get those late payments removed.... there were 3 from last year. I only have 1 other late payment on my report.

However after those late payments were removed my score did not even go up by 1 point!! I even pulled all 3 reports, the change is reflecting on my credit but no movement in my score.... Grrr is there a reason why? I have 0 collections, liens, charge offs, or judgements so I thought the late payments were having a larger impact on my score.

[Anonymous]

You write:

"I even pulled all 3 reports, the change is reflecting on my credit but no movement in my score.... "

Does this mean you paid for a new 3B report from myFICO?  I am just trying to get clear what makes you certain that no score change could have occured.  If you are relying on the myFICO alerts, then it's quite possible the score changed without you knowing it.

You also indicate that the lates that were removed were 30-day lates, but that you still have one late (possibly from a different account).  Is the remaining late a more serious late, like a 60-day or 90-day late?  If so, I wonder whether FICO is viewing that as the more serious driver of your derog penalty.  Is the remaining late from the same account or a different one?

Final question: were your lates reported consistently across all three bureas?  I.e. did you have exactly four lates on all three reports, and now you have exactly one on all three reports?

[theheater30]

Hi there! Yes I pulled the 3b report... Changes reflected and no boost in score. All of my late payments I have are only 30 day, no 60 day, 90 day, etc. the late payments are distributed throughout all 3 CRA's as well. So now I have only 1 30 day late...

[theheater30]

I was really hoping for at least 5 points LOL I looked at my score history and I did get a significant drop in points when those lates were reported. Also my FAKO went up by 20 points which I know is meaningless in terms of an accurate score but there was some movement. So I am wondering if FICO weighs closed accounts differently?

[theheater30]

Not sure that I'll ever really understand this scoring system!!!

[Anonymous]

I am no expert on derogs.  I personally had a gigantic number of them in 1999, and just dealt with it by crawling into my cave, hoping the collection agencies wouldn't move beyond their usual tactic of threats, etc.  I didn't even look at my reports or scores for 7 years, and after that everything had fallen off of course.

That said, it does seem strange that a person could have three recent lates (last 18 months) but for them to have (apparently) no impact on his score -- since when they were removed, the score did not alter.  If you had far worse derogs, that might explain it.  But you don't.

I will be interested to hear whether anyone else has any ideas,

[theheater30]

Yeah I am curious as well. I feel like my credit is just at a complete stand still at this point. Even my simulator doesn't show any movement possible for about 6 months when previously it would show an increase from paying my bills on time. Maybe I got rebucketed? I have no idea!

[Anonymous]

I wonder whether there is something klugy going on in terms of your myFICO account.  Absolute stand still, no score budge at all including when you remove 3 lates, etc.  That really sounds strange.  Most people have at least a bit of score shift happening very frequently. 

It might interesting to see whethe your FICO 8 scores would be the same if you drew them on (say) Credit Check Total.  If the problem is with MF then CCT might reveal that fact.

If you need some advice about stuff you can do outside of derog removal, I'll be happy to give you some thoughts there.

[theheater30]

CCT is showing the exact same scores as myfico!!!