topic Any concrete evidence for when lates lose some impact in Understanding FICO® Scoring

Any concrete evidence for when lates lose some impact

Anonymous — Fri, 02 Apr 2010 22:12:47 GMT

I've heard that you should see something after a year. Anyone have any personal experience that can be shared?

Re: Any concrete evidence for when lates lose some impact

Anonymous — Sat, 03 Apr 2010 14:00:43 GMT

What kind of later are you talking about? A 30 day late? A 60 day late? A major derog, 90, 120, etc... late?

Re: Any concrete evidence for when lates lose some impact

RobertEG — Sun, 04 Apr 2010 14:27:54 GMT

My experience is that a new 30 day late will hit you iniitially for around 20 pts, and thereafter you gain back approx 3 pts per year of aging. Slow, I know, but FICO is a payment risk analysis, and lates hit hard. I dont see any major, magic jump at any threshold, such as 1 or two years.

Where you might see a yearly aging bump is for 60-day lates, which seem to initially score at a loss of around 30 pts, but seem to score, after two years, at approx the same as a 30 day late. Thus, a 60-day late at two years costs you, in my experience, around 14 pts each.

90+ lates are serious derogs, and can hit you for around 40 pts initially, and then seem to decay linearly at a constant gain of around 7 pts a year. I see no magic bump date for these. A 90-day+ late at two years of aging costs, in my experience, around 26 pts.

My estimates come from years of modeling, and are just rough estimates. FICO does not disclose their specific scoring impact in their trade secret algorithms.

I see nothng magic in a one-year aging of a derog.

Re: Any concrete evidence for when lates lose some impact

marty56 — Mon, 05 Apr 2010 20:36:24 GMT

@RobertEG wrote:
90+ lates are serious derogs, and can hit you for around 40 pts initially, and then seem to decay linearly at a constant gain of around 7 pts a year. I see no magic bump date for these. A 90-day+ late at two years of aging costs, in my experience, around 26 pts.

I have not seen that with my credit report. IMHO a 90+ derog will have a major impact on your CR untill it falls off and no one in the forum who has a score over 800 or even above 780 has one as far as I know here.

Re: Any concrete evidence for when lates lose some impact

smallfry — Mon, 05 Apr 2010 20:42:37 GMT

@marty56 wrote:
@RobertEG wrote:
90+ lates are serious derogs, and can hit you for around 40 pts initially, and then seem to decay linearly at a constant gain of around 7 pts a year. I see no magic bump date for these. A 90-day+ late at two years of aging costs, in my experience, around 26 pts.

I have not seen that with my credit report. IMHO a 90+ derog will have a major impact on your CR untill it falls off and no one in the forum who has a score over 800 or even above 780 has one as far as I know here.

I saw one poster with an old BK who had scores over 780 but he was somehow able to retain some old history and his AAofA and oldest reporting account was relatively high for a BK7. I never got above 740 TU '98 with my BK.

Re: Any concrete evidence for when lates lose some impact

Anonymous — Tue, 06 Apr 2010 06:59:29 GMT

Robert,

That is a very interesting theory. I had a 90 day late turn a year old and nothing else changed on my report, however i did see a 7 pt increase. Weird. But not arguing.