topic Re: Synchrony executive told me delinquencies stop affecting score after 2 years in General Credit Topics

Synchrony executive told me delinquencies stop affecting score after 2 years

larryfish96 — Thu, 21 Dec 2023 13:34:07 GMT

I attempted a goodwill letter with Synchrony bank for a 90 day delinquency, DOFD September 2020. I know it's a long shot, but figured I'd at least try. To my surpise, I received a reply a few hours later saying delinquencies don't effect your score after 2 years so I shouldn't worry about it. Obviously, that's incorrect... I've read countless posts on this forum saying it suppresses your score the entire 7 years. In your experience, how much did a 90 day delinquency effect you? Currently my FICO 8 is 680 across all bureaus, my only other negatives are 6.5 years old and are about to fall off. Thank you

Re: Synchrony executive told me delinquencies stop affecting score after 2 years

JoeRockhead — Thu, 21 Dec 2023 13:57:37 GMT

Yes you're correct in that lates have effects on your score the entire time they are on your reports. Although the effects diminish over that time, their sting reduces at certain time lines (6, 12, 18 months etc..), many people are surprised at how many points they gain when they finally fall off at seven years. It's hard to pin an exact number on them as it will vary from person to person, what was the initial score hit, and also depends on if it was the only derogatory, as more derogatories add more penalty.

The other issue with any 60 day late or worse, is that it also puts you on a dirty scorecard (for FICO 8 and some others)which will cause things such as utilization to be scored more harshly. You'll see some score improvement when the other baddies fall off.

Re: Synchrony executive told me delinquencies stop affecting score after 2 years

pizzadude — Thu, 21 Dec 2023 14:56:03 GMT

Good advice above, as pointed out a 90 day late will hurt you the entire time it's on your report. Does it hurt less over time, yes but it's still a major derogatory item.

Re: Synchrony executive told me delinquencies stop affecting score after 2 years

Junejer — Thu, 21 Dec 2023 19:39:04 GMT

Re: Synchrony executive told me delinquencies stop affecting score after 2 years

Junejer — Thu, 21 Dec 2023 22:58:12 GMT

What happened to the text in my post above?

I mentioned that one could easily experience 50 - 70 points loss from a 90 dpd TL (or something like that). Now, it's just blank. Did I violate something that caused it to be deleted?

Re: Synchrony executive told me delinquencies stop affecting score after 2 years

BuckyB — Wed, 27 Dec 2023 11:14:49 GMT

I've seen that quite a number of times on these boards. An "S" with a line through it. Dunno.

Re: Synchrony executive told me delinquencies stop affecting score after 2 years

fortis — Tue, 02 Jan 2024 03:58:00 GMT

The strike through (the S with line through in the text editor) is used to edit posts while retaining the original content. Click on the S then type the text you want the strike through then click on it again to stop.

I use it for a diffrent purpose, such as the ~~credit~~ debt report.

Not quite sure why just the S shows

Re: Synchrony executive told me delinquencies stop affecting score after 2 years

Junejer — Wed, 03 Jan 2024 01:28:50 GMT

@fortis wrote:
The strike through (the S with line through in the text editor) is used to edit posts while retaining the original content. Click on the S then type the text you want the strike through then click on it again to stop.

I use it for a diffrent purpose, such as the ~~credit~~ debt report.

Not quite sure why just the S shows

Thanks. However, it doesn't explain why all of my text went bye-bye, when all I did was type and hit post.

Re: Synchrony executive told me delinquencies stop affecting score after 2 years

Thomas_Thumb — Wed, 03 Jan 2024 06:06:45 GMT

@JoeRockhead wrote:
The other issue with any 60 day late or worse, is that it also puts you on a dirty scorecard (for FICO 8 and some others)which will cause things such as utilization to be scored more harshly. You'll see some score improvement when the other baddies fall off.

In reality, utilization is scored less harshly on dirty scorecards. Fico showed this in one of their presentations. One page had a graphic listing some scoring factors. The graphic indicated utilization is assigned greater "signal strength" on clean scorecards.

Poster data on MyFico specific to utilization appears to agree, on average, with the presentation graphic. Of course other things such as file thickness and length of credit history can also impact score sensitivity to changes in utilization.

Re: Synchrony executive told me delinquencies stop affecting score after 2 years

BuckyB — Wed, 03 Jan 2024 06:37:21 GMT

.... Which is bizarre to me because it seems like a person with a history of delinquencies who has run up high utilization on his cards would be a major red flag for a future delinquency. I'd think that current utilization would be the second most important scoring factor after recent lates on a dirty scorecard.

Re: Synchrony executive told me delinquencies stop affecting score after 2 years

Thomas_Thumb — Wed, 03 Jan 2024 08:26:09 GMT

@BuckyB wrote:
.... Which is bizarre to me because it seems like a person with a history of delinquencies who has run up high utilization on his cards would be a major red flag for a future delinquency. I'd think that current utilization would be the second most important scoring factor after recent lates on a dirty scorecard.

# of recent inquiries was given added weight with dirty scorecards. Account age was mentioned as well. Months since last 30+ day past due is heavily weighted on dirty scorecards as is greatest derog severity. I saved the graphic and need to check the other factors.

Clean scorecards don't allocate any signal strength to some of the dirty scorecard factors because they are not applicable. Fewer factors are available to assess risk of a 90+ late. Fico and VantageScore credit scores were designed to represent that risk. To help differentiate and assign risk scores for clean profiles ... Utilization has added signal strength. That's my take on why.

Re: Synchrony executive told me delinquencies stop affecting score after 2 years

mgood — Sat, 06 Jan 2024 17:20:59 GMT

I had a single 30-day late as the only negative on my reports. I got it removed after 5+ years and my scores shot up quite a bit, 30-ish points IIRC. Not much else was changing. I was gradually lowering utilization. I guess that moved me from a dirty scorecard to a clean scorecard, if I'm understanding that right. Every time I read that the penalty decreases over time, I wonder how bad it could have been to start with if it was still depressing my scores that much after 5 years.