topic Re: Questions from a Newbie in Understanding FICO® Scoring

Questions from a Newbie

Anonymous — Fri, 20 Jul 2007 23:07:05 GMT

How long do late payments stay on a credit report? We had some trouble making payments back in August of 2004 but have been caught up since then.

There are 2 collections on my account that are incorrect. I am going to dispute those but how long do those stay on your account if I can't get those removed?

Which agency has the best scores and who has the worst. I just pulled mine from equifax and it is 677. I would like to know if they are top, bottom or middle of the road.

Thanks.

Re: Questions from a Newbie

Anonymous — Sat, 21 Jul 2007 00:00:41 GMT

Late payments and Collections can remain for up to 7 and 1/2 years from the date it first went delinquent. Equifax is the highest score for me. But it is different for everybody.

Re: Questions from a Newbie

RobertEG — Sat, 21 Jul 2007 01:32:20 GMT

Late payments stay for 7 years, but slowly drop off in their effect as time wanders on. But 90 and 60 day lates are the absolute killers, and can still hit you for -40 points after almost two years. Monitor reproted collection accounts religiously. I have had two improper collection accounts removed from my report... it seems easy for the collectors to get them on there, and they backed down when challenged. Bankrputicies stay on for 10 years. New credit inquiries are a big hit, but easy to remove in only one year. Inquiries can cost you up to 85 points, with approx. -10 pts for each inquiry within the last six months, and -5 pts for each inquiry withing 6-12 months. So a big boost is to clear all credit inquiries by not having any within the last twelve months, giving you the max in this category or 85 points. Overall strategy is simple: dont cancel existing cards, get % revolving util below 10%, dont apply for new credit in the two year window, DONT have any late payments, and have at least one installment loan to show credit mix, which is another 85 points which can be lost without proper credit mix.. But late payments are the ahcilles heel for most, so make at least the min!

Re: Questions from a Newbie

fused — Sat, 21 Jul 2007 01:42:36 GMT

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=2689

Re: Questions from a Newbie

Anonymous — Sat, 21 Jul 2007 01:44:01 GMT

It's 7 years from 180 days after first delinquency. Thus, the 7 and 1/2 years is pretty close for the collection accounts.

Re: Questions from a Newbie

fused — Sat, 21 Jul 2007 01:45:24 GMT

RobertEG wrote:
Late payments stay for 7 years, but slowly drop off in their effect as time wanders on. But 90 and 60 day lates are the absolute killers, and can still hit you for -40 points after almost two years. Monitor reproted collection accounts religiously. I have had two improper collection accounts removed from my report... it seems easy for the collectors to get them on there, and they backed down when challenged. Bankrputicies stay on for 10 years. New credit inquiries are a big hit, but easy to remove in only one year. Inquiries can cost you up to 85 points, with approx. -10 pts for each inquiry within the last six months, and -5 pts for each inquiry withing 6-12 months. So a big boost is to clear all credit inquiries by not having any within the last twelve months, giving you the max in this category or 85 points. Overall strategy is simple: dont cancel existing cards, get % revolving util below 10%, dont apply for new credit in the two year window, DONT have any late payments, and have at least one installment loan to show credit mix, which is another 85 points which can be lost without proper credit mix.. But late payments are the ahcilles heel for most, so make at least the min!

No one can say for sure how points can be gained or lost by any change in your CRs, period.

Message Edited by fused111 on 07-20-2007 03:45 PM

Re: Questions from a Newbie

Anonymous — Sat, 21 Jul 2007 02:26:42 GMT

Thanks for the information. I guess I better start writing some letters!