topic Re: Okay...new question...What consitutes a LATE PAYMENT in Understanding FICO® Scoring

Okay...new question...What consitutes a LATE PAYMENT

Anonymous — Tue, 11 Mar 2008 18:12:48 GMT

What is meant by a late payment? One day late? Or must it be 30 days to report as late?

I have been reading quite a lot over the past few days. I recently went through a nasty divorce and my FICOs are in the 550 range.

I had two accounts with a great history that my credit union reports with a computer program. The program is automatic so they had a couple of interesting items on my CR. I was listed as 30 days late in Jan 2005. Then, I was listed as 120 days late in Nov 2007. Now my history has been VERY clean over the past 12 months and okay over the past 24 months. The credit union has already agreed to remove these items as errors (been banking with them for almost 12 years). I have high hopes that these items + PIFing two credit cards and keeping the util at 7% will help.

I hope to get a mortgage in the next 6 months and I really need scores better than 650.

Thanks!

Re: Okay...new question...What consitutes a LATE PAYMENT

Anonymous — Tue, 11 Mar 2008 18:19:08 GMT

A late payment occurs AFTER 30 days past the due date on your statement.

Re: Okay...new question...What consitutes a LATE PAYMENT

Anonymous — Tue, 11 Mar 2008 18:20:48 GMT

Thanks!

That is what I thought it was. I travel internationally constantly and struggle sometimes to get a secure internet connection to pay my bills. I actually had one last year that was two days late because of this.

Re: Okay...new question...What consitutes a LATE PAYMENT

BallBounces — Tue, 11 Mar 2008 19:13:41 GMT

pushedtoofar wrote:
What is meant by a late payment? One day late? Or must it be 30 days to report as late?

I have been reading quite a lot over the past few days. I recently went through a nasty divorce and my FICOs are in the 550 range.

I had two accounts with a great history that my credit union reports with a computer program. The program is automatic so they had a couple of interesting items on my CR. I was listed as 30 days late in Jan 2005. Then, I was listed as 120 days late in Nov 2007. Now my history has been VERY clean over the past 12 months and okay over the past 24 months. The credit union has already agreed to remove these items as errors (been banking with them for almost 12 years). I have high hopes that these items + PIFing two credit cards and keeping the util at 7% will help.

I hope to get a mortgage in the next 6 months and I really need scores better than 650.

Thanks!

I'll add that getting UTIL to 7% and removing two lates may have a dramatic effect on your scores. It is very possible to get to mid 600 and better in the time you are looking at (depending on a lot of other variables not yet mentioned). You are on the right track!

Re: Okay...new question...What consitutes a LATE PAYMENT

Anonymous — Tue, 11 Mar 2008 20:01:05 GMT

Thanks,

I have to admit that I expected the scores to bad given what happened. I was NOT prepared for the large number of items that were reported incorrectly!

Re: Okay...new question...What consitutes a LATE PAYMENT

marty56 — Tue, 11 Mar 2008 23:27:32 GMT

Back in 2003 3 when I started DMP, my Wells Fargo wa spaid on thed 3rd but the payment ways due on the first and the statment date was the 2nd. They marked it 30 days late even though it was 2 days late. Their policy at the time was that if the payment wasnt received by the next statement date aftet the due date, it was 30 days late.

I understand that most CCCs and creditors go by calendar date but I wouldnt want to test any creditor on it.

Also some creditors expect the payment to be made by a certian time. If you pay over the phone or go into the bank, kept that in mind,

Re: Okay...new question...What consitutes a LATE PAYMENT

haulingthescoreup — Wed, 12 Mar 2008 00:30:06 GMT

Different CCC's interpret 30 days late in different ways: 30 days past the statement date, 30 days past the due date, 30 days past the purchase date, which is outrageous, and some will report you 30 days late if you miss your due date by a day.

Getting a 120-day from Nov 07 removed will be HUGE! Please let us know the befores-and-afters.

Re: Okay...new question...What consitutes a LATE PAYMENT

Anonymous — Wed, 12 Mar 2008 03:58:23 GMT

@haulingthescoreup wrote:
Different CCC's interpret 30 days late in different ways: 30 days past the statement date, 30 days past the due date, 30 days past the purchase date, which is outrageous, and some will report you 30 days late if you miss your due date by a day.

Getting a 120-day from Nov 07 removed will be HUGE! Please let us know the befores-and-afters.

That's interesting Hauling. Thanks for chiming in. I based my response to Op on what Cap1 told me a few months ago. Goes to show you, nothing is consistent in this insanity.

Re: Okay...new question...What consitutes a LATE PAYMENT

haulingthescoreup — Wed, 12 Mar 2008 04:24:23 GMT

@Anonymous wrote:
@haulingthescoreup wrote:
Different CCC's interpret 30 days late in different ways: 30 days past the statement date, 30 days past the due date, 30 days past the purchase date, which is outrageous, and some will report you 30 days late if you miss your due date by a day.

Getting a 120-day from Nov 07 removed will be HUGE! Please let us know the befores-and-afters.

That's interesting Hauling. Thanks for chiming in. I based my response to Op on what Cap1 told me a few months ago. Goes to show you, nothing is consistent in this insanity.

But that's exactly what I meant! First of all, every CCC seems to do this differently. Then, every CSR from the same company tells you something different, according to the phase of the moon and whether the guy at the drive-through was rude to them that morning, or something. My own sense of logic tells me that it should be 30 days from the due date, but I haven't found any CCC's yet who are swayed by any feedback from me on any issue at all, especially GW'ing my lates away.

Supposedly all of us kept all of our printed terms and conditions for each card, filed carefully away, and we have a 15-year-old who can actually read the fine print. But all the rest of us are pretty much at the mercy of what the CCC pops up with.

Re: Okay...new question...What consitutes a LATE PAYMENT

Anonymous — Wed, 12 Mar 2008 12:26:31 GMT

The wide range of answers you get is not uncommon. I have a huge distaste for "customer DIS-Service". They are untrained...empowered to do NOTHING. If the computer that they operate does not tell them to go the bathroom, they will wet their pants. My ex used to work for one in the insurance field. The computer logs you off as going to the bathroom and logs you back in when you return!

I have learned to be patient, but it is hard. I, for one, will never trust ANYTHING said over the phone. Get it in writing (even if you have to go get the kids to help you read the fine print!)

Re: Okay...new question...What consitutes a LATE PAYMENT

BallBounces — Wed, 12 Mar 2008 15:03:54 GMT

Just for a somewhat different perspective, I have a 30day late mark on a former card. I attempted GW for removal.

Part of the reply I received was that a) it was valid and would not be removed, and b) I was really 60 days late, but they only mark 30. For what it is worth, this is likely true, at least in this case.

Re: Okay...new question...What consitutes a LATE PAYMENT

athensguy — Thu, 13 Mar 2008 12:59:23 GMT

I think it's really like this:

30: 0-30 days late, or not paid by due date, but paid before next due date
60: 31-60, or not paid by second due date
90: 61-90, or not paid by third due date
120+: >90

Re: Okay...new question...What consitutes a LATE PAYMENT

Anonymous — Thu, 13 Mar 2008 13:23:54 GMT

I have requested a current up to date copy of my Discover card holder agreement. I will review this and see what the darn thing says! This is probably the only way we will ever get the truth.....

Re: Okay...new question...What consitutes a LATE PAYMENT

haulingthescoreup — Thu, 13 Mar 2008 17:28:48 GMT

@Anonymous wrote:

I have requested a current up to date copy of my Discover card holder agreement. I will review this and see what the darn thing says! This is probably the only way we will ever get the truth.....

And even that will only be for Discover.

Please remember that this does vary by lender!

Most non-crap lenders won't turn in a 30 on you until you still haven't paid by the following statement date, or by the second due date, but they will absolutely and very cheerfully hit you with late fees and possibly rate-jacks for missing that first due date! There's a difference between the late from the CCC's perspective and the lates that they turn in to the CRA's.

Re: Okay...new question...What consitutes a LATE PAYMENT

Anonymous — Thu, 13 Mar 2008 17:31:43 GMT

oh, I know all about rate jacking.....

I was pushing them to drop the rate on the card. However, if I intend to keep balances at 1-9%, the interest rate is a nonfactor.

I also asked CapitalOne for the cardholder statement also. One other thing, not only will my answers be for CapitalOne and Discover, they will also be for those companies in the state where you live. Some states are the same but not all.