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Old Late Payments

The only baddies on my credit reports are 13 near-consecutive late payments on a now closed auto loan.  Those turn 7 years this October and will begin falling off.  They will continue to do so until January 2019.  

 

How much are these keeping my score down?  13 is a ton but they are also old so I'm wondering what role they play.  

 

Thanks everyone!



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Re: Old Late Payments

What is the severity (30, 60, 90 etc) of the late payments?  30's for sure and 60's possibly may not be impacting your score at all if they are 6 years old or so.  If they are 90+ days late, they certainly are holding your scores back and will continue to do so until the last one hits the 7 year mark.  It's tough to quantify how much they are hindering your scores, but a ballpark guess would be something to the tune of 60-70 points. 

 

Keep in mind that due to dramatically diminishing returns, you wouldn't see those points come back until the FINAL major (90 day+) late payment comes off.  So say you have 3 different 90 day lates reported... even if 2 of them comes off, you may only see a couple of points.  But, when that 3rd one comes off, BAM your scores shoot up 60 points, or whatever significant number your profile allows. 

 

If you could provide a bit more info regarding the severity of your reported late payments perhaps we could give you a bit more help.  Who was the auto loan through?  There's a chance you could get the negative information deleted depending on who the loan was through.  I'd suggest GW letters taking the angle that you are looking to take out another auto loan with the same company, but would feel much better doing so if the late payment history on your previous loan wasn't present.  This lets them see an incentive (profit on another loan) for helping you out.  This is one of the points I've discussed in the Saturation Technique, which you can read about here if you'd like:

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/The-Saturation-Technique-Best-GW-adjustment-o...

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Re: Old Late Payments


BrutalBodyShots wrote:

What is the severity (30, 60, 90 etc) of the late payments? 

 

Severe!  5 30's, 7 60's, and 1 or 3 90's.  In truth I'm a little unsure of exactly what's being reported for 2 of those months as it's really inconsistent.  Depending on the site and CRA it usually says "NR" or "NA" or it's just blank.  But on Credit Karma, for example, Equifax is reporting a charge-off for those two months when I roll my curser over the little graphic.  And in actuality that's sort of what happened.  They were ready to repossess and I only staved off the tow truck by making single-payment arrangements with them but I was at 120 days both those months.  After that I got back to work and it was all on-time payments.  

 

It's tough to quantify how much they are hindering your scores, but a ballpark guess would be something to the tune of 60-70 points. 

 

Geez that's a lot!

 

Keep in mind that due to dramatically diminishing returns, you wouldn't see those points come back until the FINAL major (90 day+) late payment comes off.  So say you have 3 different 90 day lates reported... even if 2 of them comes off, you may only see a couple of points.  But, when that 3rd one comes off, BAM your scores shoot up 60 points, or whatever significant number your profile allows. 

 

That makes good sense.  Particularly as it pertains to those mystery months -- whether charge-offs or 120's, they are bad, bad, bad!

 

Who was the auto loan through? 

 

Capital One.

 

I'd suggest GW letters taking the angle that you are looking to take out another auto loan with the same company, but would feel much better doing so if the late payment history on your previous loan wasn't present.  This lets them see an incentive (profit on another loan) for helping you out.  This is one of the points I've discussed in the Saturation Technique, which you can read about here if you'd like:

 

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/The-Saturation-Technique-Best-GW-adjustment-o...

 

Thanks for the link.

 

In fact, I did a pre-qual with Capital One a week or so ago and was approved for 55K at 4.63%.  And I would use them again in the future if I can't get one of those killer dealership-based rates.


 



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Re: Old Late Payments

[ Edited ]

I'm not sure how "tough" Capital One is with GW, but I'm confident that with persistence you can get through to just about anyone.  I also see that you have a CO QS CC.  Assuming you have flawless payment history on that account, I'd use that as support for your argument that your auto loan account is a fluke. 

 

Keep in mind that any "string" of late payments are viewed and scored as the worst severity that is reported.  So if in Jan you see you're 30 days late, Feb 60 days, March 90 days, that "string" is viewed/scored as "90 days late" and the 30/60 from Jan/Feb aren't really a factor... they are just supporting data leading up to the 90 in March. 

 

Have you pulled hard copy credit reports recently from all 3 bureaus?  It would be good to see exactly how these late payments are being reported.  Sometimes monitoring software can show you funny things and what you see many be inconsistent between different sources that are providing you with online versions of your reports.  Your goal really should be to tackle those 90+ day "major" delinquencies, as removing them and leaving just the 30's and 60's could result in a decent score gain.  Of course getting rid of all of them would be ideal.  Another option you could try is requesting to have the entire account removed.  Rather than targeting specific late payment information, if they were to agree to wipe the account of your credit report naturally you'd see a huge score gain.  This may be difficult for them to agree to, though, so you'd definitely want to give them some incentive to consider doing it... "I'd really like to take out an auto loan with you guys, but..."

 

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Re: Old Late Payments


BrutalBodyShots wrote:

I'm not sure how "tough" Capital One is with GW, but I'm confident that with persistence you can get through to just about anyone.  I also see that you have a CO QS CC.  Assuming you have flawless payment history on that account, I'd use that as support for your argument that your auto loan account is a fluke. 

 

Define flawless.  I've never made a payment late and I always pay more than the minimum but I am carrying 16% utilization.  Is that considered flawless to Capital One??

 

Keep in mind that any "string" of late payments are viewed and scored as the worst severity that is reported.  So if in Jan you see you're 30 days late, Feb 60 days, March 90 days, that "string" is viewed/scored as "90 days late" and the 30/60 from Jan/Feb aren't really a factor... they are just supporting data leading up to the 90 in March.

 

Right, and that 90 is supporting the data that lead up to the 120 slash charge-off slash I don't what.

 

Have you pulled hard copy credit reports recently from all 3 bureaus? 

 

I have the paper snail mail copy I got from Experian when I did a dispute and I have the digital copies from Annual Credit Report.  You mean those?

 

...Sometimes monitoring software can show you funny things and what you see many be inconsistent between different sources that are providing you with online versions of your reports. 

 

Isn't that the truth.  I keep track of 8 websites that report data and most of them differ slightly one from another.  But, they're still great for the primary information, it's just the details that can get wonky.

 

Your goal really should be to tackle those 90+ day "major" delinquencies, as removing them and leaving just the 30's and 60's could result in a decent score gain.

 

Well, in October the first 30 day late turns 7 years old so they'll start falling off each month (at least I assume).  I supposed they don't really matter since I don't plan on getting a new car until they're gone.

 

...Another option you could try is requesting to have the entire account removed.  Rather than targeting specific late payment information, if they were to agree to wipe the account of your credit report naturally you'd see a huge score gain.

 

Would I see a huge score gain though?  Because that's my only installment account.  Doesn't it still have value simply by being there, late payments or not??

 


 



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Re: Old Late Payments

A flawless account with respect to payment history simply means making on time payments.  It doesn't have anything to do with the amount you pay, so long as it meets the "minimum" and it's made on time every month.  Utilization is also not factored into payment history at all, as "utilization" is its own sector of the FICO pie. 

 

Yes your credit reports from annual credit report are your "real" credit reports that may look a little different than what you see from the different monitoring software sites.

 

If it's your only installment account, it does have value in that it's satisfying "credit mix" which means depending on the installment utilization it can be helping you anywhere from a few points to 25-30 points.  But, if it contains negative information, it's going to be hurting your scores more than it's helping.  You can always employ the SSL technique to satisfy "credit mix" so there's no need to worry about having a "real" installment loan present to be honest.  Any time you can eliminate a negative account, that's going to be a good thing.

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Re: Old Late Payments

As another posted has said and I will reiterate that you will not see significant score increase until your very last baddie is gone from your reports.

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Re: Old Late Payments


donny10 wrote:

As another posted has said and I will reiterate that you will not see significant score increase until your very last baddie is gone from your reports.


Hi Donny.  Just for clarity, BBS didn't quite say that.  Suppose that a person had a number of Day 90 lates and a few Day 30 lates.

 

Your guess would be that there would be no significant score increase until the very last baddie was gone.

 

BBS suggests in that scenario that there would be a significant bonus once all the Day 90s were gone (but not until then).

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Re: Old Late Payments

[ Edited ]

CreditGuyInDixie wrote:

donny10 wrote:

As another posted has said and I will reiterate that you will not see significant score increase until your very last baddie is gone from your reports.


Hi Donny.  Just for clarity, BBS didn't quite say that.  Suppose that a person had a number of Day 90 lates and a few Day 30 lates.

 

Your guess would be that there would be no significant score increase until the very last baddie was gone.

 

BBS suggests in that scenario that there would be a significant bonus once all the Day 90s were gone (but not until then).


I will make a correction. Here is some clarity.

 

I AM SAYING that one will not see a significant score increase until your very last baddie falls off.

 

When my 2 last baddies fell off my Equifax report together, two 60 day lates that were 7 years old I had a 44 point increase on my Equifax FICO.

 

When a 30 day late fell off my Experian report that was 5 years old I had a 18 point increase.

 

Now, of course your going to say every profile is different and I understand that. But I just wanted to save anyone from saying it.

 

This is my experience and have read countless other folks with same experience with lates.

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Re: Old Late Payments

Hi Donny.  You may be right.  I don't lnow much about derogs.  You and BBS know more than I do.

 

I will say that, if you are right, it would as though FICO would only have two levels of scoring as touches lates:

       (1) Completely clean

       (2) One or more lates

 

with #2 giving people a scoring penalty of maybe 50-70 points.

 

Once you get your first Day 30 late, then adding more lates (whether Day 30, Day 60 or Day 90) would not affect your score, since if there was an increasing penalty as the extra or more severe lates were added, then there would be a decreasing penalty as they came off.

 

It seems a little strange that once you have one Day 30 late it wouldn't hurt you to get several more lates at Day 60 or Day 90.  But perhaps that really is how it works.  As I say, you guys know more about it than I do.

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