topic Re: calculation for payment history? in General Credit Topics

calculation for payment history?

Anonymous — Mon, 30 Mar 2020 17:26:20 GMT

Anyone know what the formula is?

Re: calculation for payment history?

Remedios — Mon, 30 Mar 2020 17:33:06 GMT

I'm not sure what do you mean by calculation of payment history.

There are no percentages there, that's for entertainment purposes.

It's either "clean", or negatives are present.

Re: calculation for payment history?

Anonymous — Mon, 30 Mar 2020 17:34:56 GMT

For instance how many lates throw you into certain thresholds of points

Re: calculation for payment history?

Remedios — Mon, 30 Mar 2020 17:39:55 GMT

It doesnt work like that. There is no certain percentage, nor does everyone experiences exact same number of points lost for identical derog.

It's sometimes possible to estimate range, but even those vary widely

I've seen loss of between 35 and 75 points for a single 30 day late on different profiles.

What you're asking about is the secret sauce.

Re: calculation for payment history?

dragontears — Mon, 30 Mar 2020 17:47:18 GMT

@Anonymous wrote:
For instance how many lates throw you into certain thresholds of points

In the broadest terms the break point is no late payments and having a late payment. The "fluff" in CMS gives you a percentage but to the best of my knowledge you can't "dilute" a late payment with on time payments as far as scoring models go.

Re: calculation for payment history?

Anonymous — Mon, 30 Mar 2020 17:49:53 GMT

I have 2 cards each with 19late payments, job losses, if I pay off in full just one card, it rings me down to 19 late payments. That's the scenario I'm looking at.

Re: calculation for payment history?

dragontears — Mon, 30 Mar 2020 17:54:47 GMT

@Anonymous wrote:
I have 2 cards each with 19late payments, job losses, if I pay off in full just one card, it rings me down to 19 late payments. That's the scenario I'm looking at.

Paying off or closing an account with late payments will not remove the late payments from your reports

Re: calculation for payment history?

Brian_Earl_Spilner — Mon, 30 Mar 2020 18:02:50 GMT

@dragontears wrote:
@Anonymous wrote:
For instance how many lates throw you into certain thresholds of points
In the broadest terms the break point is no late payments and having a late payment. The "fluff" in CMS gives you a percentage but to the best of my knowledge you can't "dilute" a late payment with on time payments as far as scoring models go.

I never understood why it doesn't count. I have 500 good payments on my open accounts, but lenders are focused on 7 lates 4 years ago. 4 years and 500 payments later they think I might be a lending risk still? 🤦‍♂️

Re: calculation for payment history?

Remedios — Mon, 30 Mar 2020 18:30:15 GMT

@Brian_Earl_Spilner wrote:
@dragontears wrote:
@Anonymous wrote:
For instance how many lates throw you into certain thresholds of points
In the broadest terms the break point is no late payments and having a late payment. The "fluff" in CMS gives you a percentage but to the best of my knowledge you can't "dilute" a late payment with on time payments as far as scoring models go.
I never understood why it doesn't count. I have 500 good payments on my open accounts, but lenders are focused on 7 lates 4 years ago. 4 years and 500 payments later they think I might be a lending risk still? 🤦‍♂️

Easiest explanation

Be unfaithful, then explain to your wife/GF/whomever how you were faithful 99% of time.

Re: calculation for payment history?

Trudy — Mon, 30 Mar 2020 20:32:46 GMT

@Remedios wrote:
@Brian_Earl_Spilner wrote:
@dragontears wrote:
@Anonymous wrote:
For instance how many lates throw you into certain thresholds of points
In the broadest terms the break point is no late payments and having a late payment. The "fluff" in CMS gives you a percentage but to the best of my knowledge you can't "dilute" a late payment with on time payments as far as scoring models go.
I never understood why it doesn't count. I have 500 good payments on my open accounts, but lenders are focused on 7 lates 4 years ago. 4 years and 500 payments later they think I might be a lending risk still? 🤦‍♂️
Easiest explanation

Be unfaithful, then explain to your wife/GF/whomever how you were faithful 99% of time.

Nailed it Remedios!

OP - 95% positive payment history is a fail, not an A when it comes to FICO. Not that you failed because it happens, but don't buy in to the % of positive payments as a good thing unless its 100%. Yes 95% is better than 85% but doesn't directly correlate to the score impact. As noted above credit monitoring services provide a lot of fluff stuff like fair, good, very good, etc and it doesn't mean anything to a lender. Unless you are able to get a creditor to remove a late through begging, than it's there for 7 years. Each bureau may remove a month or some months before the 7 year mark but it negatively impacts your scores until it's gone. The impact may lessen over years but could still pack a punch until it's gone. I received between 27 and 50 points between the bureaus when my last late (a single 30 day) which was 6+ years old was removed a little early.

Re: calculation for payment history?

Anonymous — Tue, 31 Mar 2020 18:33:56 GMT

Not exaclty an accurate comparison IMO, you don't accidently forget that you're not sleeping next to your SO. Being unfailfull is a willfull act on someone's part, not a lapse of memory due to being busy or simply forgetfull. Or for even having a rough patch.

However, I do understand lenders being cautious for those reasons. But at the end of the day they were paid, and likely raked in late fees too so they're out nothing really. It could have gone much worse with them never being paid at all. And sometimes that's how it feels those who have a few lates are being treated.

Re: calculation for payment history?

Remedios — Thu, 02 Apr 2020 13:14:18 GMT

@Anonymous wrote:
Not exaclty an accurate comparison IMO, you don't accidently forget that you're not sleeping next to your SO. Being unfailfull is a willfull act on someone's part, not a lapse of memory due to being busy or simply forgetfull. Or for even having a rough patch.

However, I do understand lenders being cautious for those reasons. But at the end of the day they were paid, and likely raked in late fees too so they're out nothing really. It could have gone much worse with them never being paid at all. And sometimes that's how it feels those who have a few lates are being treated.

Actually, it's very accurate, but you're taking it literally.

There is no field in Metro 2 for "I forgot", "Too many accounts", "Having hard time"

Missed payment is missed payment.

Late is always taken as sign of financial distress. Lenders do not investigate your personal life to see how busy you are and how likely it is you will be late because you have other thing to worry about.

In a way, forgetting indicates lower level of responsibility. It's like forgetting to pick up your kid from daycare.

You might think you're the best parent ever, but you just forgot your kid

As far as "having a rough patch", we're supposed to account for rough patches

Instead of savings, people opt for cars they cannot afford, houses they cannot afford, every trinket known to mankind.

No one wants to hear it, but for a lot of people, these are self inflicted wounds.

15 years ago I had several strings if lates simply because I either ran out of checks, stamps, or forgot to mail it.

Money was always there, I was not in financial distress, but I wasnt responsible.

I didnt take care of my obligations in timely manner, and I paid dearly for it.

Re: calculation for payment history?

Iusedtolurk — Fri, 03 Apr 2020 11:18:31 GMT

@Remedios wrote:
@Brian_Earl_Spilner wrote:
@dragontears wrote:
@Anonymous wrote:
For instance how many lates throw you into certain thresholds of points
In the broadest terms the break point is no late payments and having a late payment. The "fluff" in CMS gives you a percentage but to the best of my knowledge you can't "dilute" a late payment with on time payments as far as scoring models go.
I never understood why it doesn't count. I have 500 good payments on my open accounts, but lenders are focused on 7 lates 4 years ago. 4 years and 500 payments later they think I might be a lending risk still? 🤦‍♂️
Easiest explanation

Be unfaithful, then explain to your wife/GF/whomever how you were faithful 99% of time.

Pretty good way of putting it because when you get credit you are establishing a relationship with that creditor and if you don't keep up your end you will reap the repercusions.