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I've seen many discussions on this forum saying that 30 or 60 day lates have very little impact after 2 years. But the simulator at bankrate as well as some people's experience suggests that when the last 30 or 60 day late falls off your report after 7 years, your score increases by about 25 points. How can both statements be true?
In my case, when my last two 60 day lates aged off, I lost five points on my FICO EQ.
I was rebucketed!
@Anonymous wrote:I've seen many discussions on this forum saying that 30 or 60 day lates have very little impact after 2 years. But the simulator at bankrate as well as some people's experience suggests that when the last 30 or 60 day late falls off your report after 7 years, your score increases by about 25 points. How can both statements be true?
I think there's too many other variables affecting a score, to be able to predict something like this correctly . Like AAoA, age of that TL, util. at the 7 year mark, and like beam said, re-bucketing.
In other words, I think it works differently for everyone.
I think it also depends on how high your score is...if you are in the mid-600s, then there will probably be little impact, but if you are near 800, it makes more of a difference.
In my case, my score rose after a 30 day late was removed from an AU account...but only TU removed it, EQ didn't...so they are 10 points apart and thus, that's a "little impact".
It also depends, as was mentioned, on what else is going on...new loans, other accounts aging, etc...7 years is a lot of time for something to change!
Thanks, Peach. The impact of the removal of a 30 day late is the kind of information I was looking for. Was this your only late? Or was it your most recent late? How old was it when it got removed?
I realize a lot will change in 7 years. I am just curious if, all else being equal, 30 and 60 day lates really have negligible impact after 2 years or if the very presence of any lates (within 7 years) dings you substantially (by like 25 points as the simulator suggests). In the latter case, I will redouble my GW letter efforts.
A 30-day late is a minor derog in credit scoring. Its impact at 6 years vs it deletion at 7 years is minimal. 25 pts? no way!
FICO begins to scores derogs above 30-day lates as major derogs. In my years on this site, all anecdotal reportings of 60-day lates is that, before two years from their occurance, the are treated at about twice the inmpact of 30-day lates. But then, after two years, they are treated the same as minor, 30-day lates in scoring.
90+ lates dont seem to reduce at any such impact.
There is no way that droppng of a 30-day (or even a 60-day) late after 7 years would, in my opiinion, resutt in anywhrere a 25 point increase in FICO score.
I estimate a gain of only 5 points or less.
Well, this woman seems to have seen a 25 point hike because of the last 60 day aging off.
The FICO simulator at bankrate.com also says that for both 30 and 60 day lates, having none is about 25 points better than having one more than 4 years old. I really doubt it is true for 30 based on this forum, but am not sure about 60. I hope it is not true.