topic Re: Late impact in Understanding FICO® Scoring

Late impact

Anonymous — Mon, 22 Nov 2010 06:08:22 GMT

I've seen many discussions on this forum saying that 30 or 60 day lates have very little impact after 2 years. But the simulator at bankrate as well as some people's experience suggests that when the last 30 or 60 day late falls off your report after 7 years, your score increases by about 25 points. How can both statements be true?

Re: Late impact

Anonymous — Mon, 22 Nov 2010 06:24:58 GMT

In my case, when my last two 60 day lates aged off, I lost five points on my FICO EQ.

I was rebucketed!

Re: Late impact

ficonightmare — Mon, 22 Nov 2010 11:57:14 GMT

@Anonymous wrote:
I've seen many discussions on this forum saying that 30 or 60 day lates have very little impact after 2 years. But the simulator at bankrate as well as some people's experience suggests that when the last 30 or 60 day late falls off your report after 7 years, your score increases by about 25 points. How can both statements be true?

I think there's too many other variables affecting a score, to be able to predict something like this correctly . Like AAoA, age of that TL, util. at the 7 year mark, and like beam said, re-bucketing.

In other words, I think it works differently for everyone.

Re: Late impact

Anonymous — Wed, 24 Nov 2010 20:08:24 GMT

I think it also depends on how high your score is...if you are in the mid-600s, then there will probably be little impact, but if you are near 800, it makes more of a difference.

In my case, my score rose after a 30 day late was removed from an AU account...but only TU removed it, EQ didn't...so they are 10 points apart and thus, that's a "little impact".

It also depends, as was mentioned, on what else is going on...new loans, other accounts aging, etc...7 years is a lot of time for something to change!

Re: Late impact

Anonymous — Wed, 24 Nov 2010 21:14:48 GMT

Thanks, Peach. The impact of the removal of a 30 day late is the kind of information I was looking for. Was this your only late? Or was it your most recent late? How old was it when it got removed?

I realize a lot will change in 7 years. I am just curious if, all else being equal, 30 and 60 day lates really have negligible impact after 2 years or if the very presence of any lates (within 7 years) dings you substantially (by like 25 points as the simulator suggests). In the latter case, I will redouble my GW letter efforts.

Re: Late impact

RobertEG — Thu, 25 Nov 2010 08:15:52 GMT

A 30-day late is a minor derog in credit scoring. Its impact at 6 years vs it deletion at 7 years is minimal. 25 pts? no way!

FICO begins to scores derogs above 30-day lates as major derogs. In my years on this site, all anecdotal reportings of 60-day lates is that, before two years from their occurance, the are treated at about twice the inmpact of 30-day lates. But then, after two years, they are treated the same as minor, 30-day lates in scoring.

90+ lates dont seem to reduce at any such impact.

There is no way that droppng of a 30-day (or even a 60-day) late after 7 years would, in my opiinion, resutt in anywhrere a 25 point increase in FICO score.

I estimate a gain of only 5 points or less.

Re: Late impact

Anonymous — Thu, 25 Nov 2010 13:39:03 GMT

Well, this woman seems to have seen a 25 point hike because of the last 60 day aging off.

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Impact-of-90-day-late-dropping-off-report-FICO-score-increase-of/m-p/632497#M44459

The FICO simulator at bankrate.com also says that for both 30 and 60 day lates, having none is about 25 points better than having one more than 4 years old. I really doubt it is true for 30 based on this forum, but am not sure about 60. I hope it is not true.