topic Re: Late Drop-Offs... 7 Years!? in General Credit Topics

Late Drop-Offs... 7 Years!?

Anonymous — Tue, 20 Jul 2010 15:32:47 GMT

Obviously by now I know late payments will drop off your credit report after 7 years. You know what else drops off in 7 years? Chapter 13 bankruptcy!

The point I'm trying to get at and see if anyone will agree, do you think that 7 years is a bit extreme for a single 30-day late payment? Wouldn't 4 years make more sense and at the same time give a more accurate score / accountability of the users finances? I do realize that as time goes on, the lates take a backseat in the FICO model (as well as the others). 7 years though... that's almost 10% of your life.

Re: Late Drop-Offs... 7 Years!?

Anonymous — Tue, 20 Jul 2010 16:33:02 GMT

@Anonymous wrote:
Obviously by now I know late payments will drop off your credit report after 7 years. You know what else drops off in 7 years? Chapter 13 bankruptcy!

The point I'm trying to get at and see if anyone will agree, do you think that 7 years is a bit extreme for a single 30-day late payment? Wouldn't 4 years make more sense and at the same time give a more accurate score / accountability of the users finances? I do realize that as time goes on, the lates take a backseat in the FICO model (as well as the others). 7 years though... that's almost 10% of your life.

I agree that 7 years for a single 30 day late seems much too long.

But some would argue that 4 years is still too long

Others might say that it should be gone in a year. You'll probably get as many different opinions about this as there are posters.

From a BK years ago to:
9/09 EX pulled by lender 802
3/10 EQ- 800
6/10 TU -772

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Re: Late Drop-Offs... 7 Years!?

happy0510 — Tue, 20 Jul 2010 16:36:23 GMT

IMO, I think 7 years is good. People need to realize the importance of paying their bills on time period. I sure learned my lesson!! If I have had to put in my 7 years, and they change the law in the 8th year, I will be pretty p'ssed off! Lol

Re: Late Drop-Offs... 7 Years!?

Anonymous — Tue, 20 Jul 2010 16:39:54 GMT

I have until 2013 + 2014 to get rid of 3 total late payments. Two of which happened at the same time due to circumstances out of my control (hospitalized). The other due to travel + at the time I wasn't as credit-worthy as I am now.

Re: Late Drop-Offs... 7 Years!?

RobertEG — Wed, 21 Jul 2010 02:09:28 GMT

The 7-year drop off does not tell the entire picture. The other part of the picture is the continuing impact of the lates during their 7-year period.

That is a FICO scoring issue, and not a CRA drop-off issue. A 30-day late, after a couple of years, has much less impact on your score than does a reported BK tht has aged the same amount.