@Anonymous wrote:How much does a credit score go up monthly with no activity or very little activit? For example I have only 1 credit card and no open loans. My student loans are in deferement while i finish graduate school and my auto loan in paid off. No late payments.
Is it possible to see significant score increases with no activity besides credit card payments? Current utilization in 9% I am worndering if time alone will get my experian above 700. Credit card was opened in 2014. There are 2 late payments of 30 days from 2015. 1 late in 2016. No 60 or 120 day lates. 2017 all clear.
Depends on your file (and what score we're talking about), but the lates are going to be problematic (setup autopay if you can). Long term sure, no activity is where you want to be, but if you're talking shortish term wins, you're not likely going to see them with the lates there.
I moved this out of the Garden thread, TBH I'd open up two more credit cards if I were you talking FICO score maximization, 1 is too few.
@Anonymous wrote:The FICO scoring model has one purpose: to predict if a person is going to be 90 days late on any new account furnished. That's it.
A single 30 day late loses its negative effect pretty quickly -- as early as 2 years but the pain is lessened after a few months. Two 30 day lates or more will hurt much more, though, because it shows a pattern.
Even a single 60 day late isn't as painful after a few years as long as it's just one of them.
90 day lates hurt for the entire 7 years because the FICO model is predictive of a person hitting 90days, so if you do it once, it means you are likely to do it again.
One thing to consider is paying on time for 2 years, more than the minimum, and showing low utilization. Get 2 more credit cards immediately because it will help your FICO. Then ask your original creditor you were late with to give you a good will adjustment to remove those lates. Some will do it if you're a good continuing customer.
I think this may be old forum wisdom that is no longer correct. I have a report from 12/16 from Experian when my last tax lien wandered away for a week and all that remained was the following: 4/10 30D, 7/10 30D, 8/10 60D.
FICO 2: no mention of missed payments in reason codes.
FICO 3: ditto
FICO 8: #1 reason code - 1. You have one or more accounts showing missed payments or derogatory indicators
FICO 9: Same above but in the #2 slot (behind length of revolving history of all things, definitely a pretty person reason code haha).
It might be pattern, but I'm starting to really come around to the fact that at least 60D lates do matter full monty if it keeps you out of the prettiest scoring buckets for FICO 8/9.
I'll see where my FICO 2/3 scores are once the tax lien is excluded in the next month or three, if they move basically back to where it was still with the lates then I'm comfortable suggesting that the lates didn't have any impact there, but when they're in the reason codes for FICO 8 and my expected score is going to be around 780 instead of the 756 with the lates, guess we'll see. I could be wrong on the 780 estimate too haha.
I'll also track that 30D late on TU that I have from 10/15 as it should be my last remaining ugliness besides short history in various flavors and my installment utilization and the January tradeline I opened up; FICO 04 definitely complains about lates now at least, 60D still on there as of my most recent May pull but I'll try to get reason codes from between 8/17 and 10/17 where the 30D is the only late on the report while it's still under 2 years of age.
@Anonymous wrote:That public record definitely shifts you (and I) into a different scorecard so it's near impossible to note changes properly against someone without a PR.
While I can't vet this article, it does offer some still-relevant insight into FICO scoring (2017 post date): https://www.credit.com/credit-reports/late-payment-secrets-revealed/
Remember there are TWO FICO reason codes that matter in this discussion: FICO 38 which is Serious delinquency and public record or collection filed: 38 (EQ, TU, EX) and FICO 39 which is Serious delinquency: 39 (also EQ, TU, EX).
There's also Derogatory public record or collection filed: 40 (EQ, TU, EX)
Note on reason code 38 the "AND" there. If I remember correctly, it was your post (Revelate) that lost the reason code 39 on TU and you gained almost 30 points when it changed to reason code 39. I would suppose you were re-bucketed although if you still had more than one account showing late, you're likely still in a derogatory group versus someone showing just one 30D and/or one 60D but not multiples.
It's the multiples that kick people into worse territory because according to FICO's analysis, if you are late once, it's not a big deal, but if you're late on two accounts or the same account twice, you're way more likely to be late to the point of charge-off.
Indeed I can confirm the existance of at least 3 different scorecards:
1) Lien + lates (derogatory scorecard)
2) Lien (derogatory scorecard)
That's on even the older models too, FICO 98 and FICO 04 in addition to FICO 8 / 9.
3) Lates (30/60D, not sure).
I appear to be on a cleanish scorecard (not one of the bottom 2) for FICO 04, I have reason codes which don't even exist in those bottom two scorecards (recently opened a new credit account). That said for FICO 8, I may still be in one of the bottom 4 with those payments missed.
We know flatly nothing about patterns other than they exist at this point, is it the same tradeline (maybe) or multiple tradelines around the same time period (more likely from what I initially read from the marketing release unless I'm misremembering which is possible). In either case, what's the time period explicitly? What about a 60D late from 8/10 and a 30D late from 10/15 on a different tradeline on my current TU report where it's complaining about missed payments everywhere? Would that be different if the 30D was 3 years old instead of just under 2?
We just don't know, and I haven't seen data confirmed anywhere.
Also we've talked about similar to the article, TT among others, that a 90D puts you into the derogatory scorecards but a 30/60D does not... I'd love to see some reason codes posted by people with 90D lates honestly and compare them with my own 30D/60D variety. We had one unconfirmed anecdotal report of a 90D at 6+ years old being at a 785, and I don't think that's even possible in the PR buckets, but whether that's part of the bottom 4 or the top 8 when talking FICO 8 I just don't know. I don't know if I'm in the bottom 4 still on TU with those two lates still showing, or if I'm in a pretty person scorecard (which I might be, short credit history *and* I haven't established a long revolving history... seriously? The second one was nowhere to be seen in my tax lien scorecards and interesting is higher now than installment utilization which has always been a friend even in my tax lien days)
This may vary between FICO models too, FICO 04 was 2 derogatory scorecards, and just a 60D late doesn't keep you in there (no patterns to worry about) and I think I'm pattern free now but the recent 30D late at a minimum on TU is what keeps that missed payments there.
I'm just hoping for more data later, till then I'm just storing reason codes till they can be compared against others with lates who are getting reason codes from MF's service, though with CCT being so much cheaper unless you care about the other scores I don't know if we'll ever get that.
I may get better informtion when my 60D late is gone from TU, and from when my lien falls off EQ/EX though my inquiry count is still off between the bureaus and that does fudge the score comparison somewhat even if that's a shoddy analysis for FICO 8 and earlier anyway with the bureau variance.