topic Delinquent Vs. Derogatory and 120 days+late in Understanding FICO® Scoring

Delinquent Vs. Derogatory and 120 days+late

Anonymous — Fri, 15 Jan 2010 19:25:54 GMT

My credit is a mess....pulled all 3 reports and trying to absorb it all......a few of questions---

Can someone please tell me the difference between Delinquent Vs. Derogatory?

Also, I have some CA's on my credit reports that are reporting 120 days+ late (Asset, LVNV, Arrow, Portfolio) on accounts purchased from OC's. I have never made any payment or contact w/ these CA's. Can they report 120 days+ late although the 30-60-90 day history status shows zero?

None of these accounts are past SOL for sueing purposes (SOL is 4 years in Texas)....should I leave them alone until they are? (most will reach SOL in late 2010 or early 2011)

THANKS !!

Re: Delinquent Vs. Derogatory and 120 days+late

RobertEG — Sat, 16 Jan 2010 01:08:44 GMT

It depends on the context that the term delinquency is being used. Many use the terms delinquency and derogatory interchangebaly.

You can be delinquent of an OC account without it being reported as a derogatory on your CR. Legally, you are delinquent one day after the bill due date, which can affect terms of your CC agreement, but the OC cant report this to the CRA as a derog on your CR until the delinquency exceeds 30-days after the bill due date.

Once an OC charges off their account and places it into collection, additinal monthly delinquencies cease to pile up, and fiurther derogatory reporting to your CR is either by way of the OC posting a CO, or the OC referring or selling the account to a collection agency.

A CA does not report monthly delinquencies, such as a 120-day late. You dont have an account wth the CA. CA reporting is between the CA and athe CRA. A CA reports the date their collection activity begins, the amount of the debt under collection, and its current status as unpaid, paid in part, paid in full, or terminated. They can update this simple status montlhly, but does not report 30/60/90/120+ lates.

What you are probably seeing with the 120-day late is the prior reporting of account delinquencies by the OC, not the date of delinquency under the CA account.

Re: Delinquent Vs. Derogatory and 120 days+late

Anonymous — Wed, 20 Jan 2010 19:40:07 GMT

Thanks for your prompt and informative reply, RobertEG!. ( I love reading your replies; they always make so much sense!)

As I begin my credit repair journey, would you suggest I WAIT til my charged-off accounts are out of SOL for sueing? I've read over and over to "let sleeping dogs lie"......would disputing them w/ CRAs or asking CA to DV wake the "sleeping dog"? Most will be out of SOL for sueing by the end of this year.

Where do I start???

OC charged off accounts:

Cap1 (sold to Asset Acceptance)

HSBC auto (sold to Portfolio)

HSBC/Orchard Bank (sold LVNV)

Chevron (not sold)

Chase Bank Credit (sold Heritage Chase; collector Unifund)

Chase Bank Credit (originally Providian then WAMU sold to Arrow)

Dell (not sold)

Valero (not sold)

UGH!! WHAT A MESS!!!!! ANY SUGGESTIONS AND WHERE TO START WILL BE GREATLY APPRECIATED, I fully understand that admitting it's a mess is the first step...I'm there!! lol

BTW, I currently have some accounts in "good standing" (thank goodness)

Nelnet student loan

Credit One bank

Home Depot

Honda Financial Services

Wells Fargo Auto

Chase Mortgage

Re: Delinquent Vs. Derogatory and 120 days+late

MattH — Sat, 23 Jan 2010 00:41:27 GMT

@Anonymous wrote:
Thanks for your prompt and informative reply, RobertEG!. ( I love reading your replies; they always make so much sense!)

As I begin my credit repair journey, would you suggest I WAIT til my charged-off accounts are out of SOL for sueing? I've read over and over to "let sleeping dogs lie"......would disputing them w/ CRAs or asking CA to DV wake the "sleeping dog"? Most will be out of SOL for sueing by the end of this year.

Where do I start???
OC charged off accounts:
Cap1 (sold to Asset Acceptance)
Cap1 (sold to Asset Acceptance)
HSBC auto (sold to Portfolio)
HSBC/Orchard Bank (sold LVNV)
Chevron (not sold)
Chase Bank Credit (sold Heritage Chase; collector Unifund)
Chase Bank Credit (originally Providian then WAMU sold to Arrow)
Dell (not sold)
Valero (not sold)

UGH!! WHAT A MESS!!!!! ANY SUGGESTIONS AND WHERE TO START WILL BE GREATLY APPRECIATED, I fully understand that admitting it's a mess is the first step...I'm there!! lol

BTW, I currently have some accounts in "good standing" (thank goodness)
Nelnet student loan
Credit One bank
Home Depot
Honda Financial Services
Wells Fargo Auto
Chase Mortgage

Can you afford to pay the full balance due? If so then you might consider making PFD offers (Google pfd site:myfico.com to learn what that acronym means).