Impact of 90 day late dropping off report = FICO score increase of 26 points! Very happy, but why?

[Anonymous]

After almost 7 years - at the end of Jan a 90 day late dropped off my credit report. ( I have one 60 day late that will drop next month and then the report will be totally clean _ and boy was that a long long wait).  I wanted to share the impact this had on my Equifax FICO score

Jan 20th Eq FICO = 725

Feb 5th Eq FICO =  756  an increase of 26 points! 

As background - there is only this one account with any negative infor (only the 60 day to drop off next month).  AAoA is around 7 years - with oldest account 20+ years old,  ultilization is <15%. one mortgage and one car loan (about 59% of original - but only 2400$)

(my DH score went from 730 to 774 during the same time - but this also includes getting a card to report which was 10+ years of good history at 19% util in addition to the 90 day late dropping off).

Everything that I had read indicated that by the time the late was so old it would have very little impact on my score - so I was delighted to see such a big increase. (both scores were pulled from equifax score watch and the feb score confirmed by a mortgage broker (refi)).

I was thinking that maybe I saw such a big jump because this 90 day had kept in in a one bracket and when it was removed I moved to another bracket which is why my score jumped so much.

Just wondered if anyone had any insight?

thanks

[marty56]

Great news.  I have a 120 day late that has 2.5 more years to go and fully expect it to be on my CR until the full term.  I think you will also so some points for the 60 day late diying as well.

[asanch12]

ukdebc,

so funny you posted this.  I too was going to ask the same thing.  I had a 60 day late from '03 and it just hit 7 years and my score jumped by 21.  I'm assuming the jump in points was because of that.  A pleasant surprise, I have another 90 day expected to come off this month, we'll see how that impacts my score!

congrats!

[Anonymous]

I thought that I would update this with the impact of that final 60 late dropping off the equifax score...

Jan 2010 - score = 725   (showing 1x 90 and 1x 60 day late - same account almost 7 years old)

Feb 2010 - score = 756   (showing 1x 60 day account)

Mar 2010 - score = 781   ( showing squeaky clean - no dings - I additional inquiry also this month....)

Message Edited by ukdebc on 03-04-2010 08:30 PM

Message Edited by ukdebc on 03-04-2010 08:31 PM

[fused]

Congrats! That's a lot of points for an old 60-day-late dropping off of a report. But, we're talking about EQ, aren't we.

[asanch12]

nice!  congrats

[smallfry]

I've been hearing that you shouldn't expect much of an increase when an old negative dropped from your report so when my BK7 dropped yesterday I wasn't expecting much of an increase. My last TU pull was 737 with the BK gone it was 770. EQ was even more of an increase. I went from 698 to 754. I think I left a few points on the table too since I let more accounts report than I would if I wanted to see a score. I didn't have the patience to wait though once I saw the BK drop.

[haulingthescoreup]

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ukdebc wrote:

After almost 7 years - at the end of Jan a 90 day late dropped off my credit report. ( I have one 60 day late that will drop next month and then the report will be totally clean _ and boy was that a long long wait).  I wanted to share the impact this had on my Equifax FICO score

Jan 20th Eq FICO = 725

Feb 5th Eq FICO =  756  an increase of 26 points! 

As background - there is only this one account with any negative infor (only the 60 day to drop off next month).  AAoA is around 7 years - with oldest account 20+ years old,  ultilization is <15%. one mortgage and one car loan (about 59% of original - but only 2400$)

(my DH score went from 730 to 774 during the same time - but this also includes getting a card to report which was 10+ years of good history at 19% util in addition to the 90 day late dropping off).

Everything that I had read indicated that by the time the late was so old it would have very little impact on my score - so I was delighted to see such a big increase. (both scores were pulled from equifax score watch and the feb score confirmed by a mortgage broker (refi)).

I was thinking that maybe I saw such a big jump because this 90 day had kept in in a one bracket and when it was removed I moved to another bracket which is why my score jumped so much.

Just wondered if anyone had any insight?

thanks

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Old 60's count as 30's, so the 90 was your only serious derog.

When the 90 left, it moved you out of the serious derog bucket into a clean one, presumably one driven by your AAoA/ oldest account. Same thing happened with me when WFFNB showed mercy and removed my lates, including a 90. I still have 30's on 3 or 4 TL's, but my scores hopped nicely.

When the 60 leaves, you will have all clean TL's, and I think you'll get some happiness from that as well.

When it comes to score changes or lack thereof, it's all in what's left on the reports after something goes away.

[Anonymous]

thanks for the insight

When the 60 dropped off I saw another bump in score... to 781 - very happy !

[haulingthescoreup]

Whoops, that's right, I'd lost track of the fact that this was an older thread that you had updated!

Anyway, a great example of the incremental changes that we get as we move from one category to another. I'm looking forward to when I have all clean TL's, although it's gonna be a longish wait. (March 2014)