topic How much/ How Long do 30 day lates effects your credit score? in Rebuilding Your Credit

How much/ How Long do 30 day lates effects your credit score?

Ridewithme38 — Mon, 17 Mar 2014 00:13:14 GMT

I have 2 accounts that are now closed, that both have 30 day lates on the accounts. They are both now closed, but, i've tried disputing with both the Credit Card Company AND the 3 Credit Score Companies...But, both said they were legit lates and they wouldn't remove them....Here are the Credit Card Companies and late dates

BOA ~ 30 Days late on ~ 2/2013 & 3/2013

BOA ~ 30 Days late on ~ 4/2012 & 5/2012 & 7/2012 & 11/2012 & 12/2012 & 1/2013 & 2/2013

I know BOA is almost impossible to get a Good Faith adjustment from, but, do i have to worry about these? There are currently, the only 'baddies' on my credit report.

Re: How much/ How Long do 30 day lates effects your credit score?

Anonymous — Mon, 17 Mar 2014 00:30:14 GMT

30 day lates generally impact your score for about 2 years. So they all are until the older ones age to 2 years.

The newer ones will hurt for another year probably.

Are they not legitimate lates?

Re: How much/ How Long do 30 day lates effects your credit score?

Ridewithme38 — Mon, 17 Mar 2014 00:34:29 GMT

Yah, they are legit. I signed up with a Credit Counciling service in april 2012. What i didn't realize is, there was an overlap. When i switched from paying the Credit Cards to paying through the Credit Counciling site, there was a gap between the statement closing dates and the first payment by the Credit Counciling service and that gap....Is what caused all those lates....

So, it is legit, it was my stupidity for not picking up that 'gap'

Re: How much/ How Long do 30 day lates effects your credit score?

Anonymous — Mon, 17 Mar 2014 00:50:27 GMT

I would still send a GW and explain why you were late.

Re: How much/ How Long do 30 day lates effects your credit score?

CWESTL — Mon, 17 Mar 2014 01:13:50 GMT

Payment history effects your score as follows:

Payment History (35%) - Payment history accounts for 35% of your FICO score.

0-12 months - 40%

13-24 months - 30%

25-36 months - 20%

37-48 months - 10%

This illusrates that late payments will have some effect on your credit score for 4 years. However, your last two years of payment history accounts for 70% of your payment history score.

Re: How much/ How Long do 30 day lates effects your credit score?

Anonymous — Mon, 17 Mar 2014 01:58:18 GMT

@CWESTL wrote:
Payment history effects your score as follows:

Payment History (35%) - Payment history accounts for 35% of your FICO score.
0-12 months - 40%
13-24 months - 30%
25-36 months - 20%
37-48 months - 10%

This illusrates that late payments will have some effect on your credit score for 4 years. However, your last two years of payment history accounts for 70% of your payment history score.

What is the source of that information?

Re: How much/ How Long do 30 day lates effects your credit score?

CWESTL — Mon, 17 Mar 2014 03:10:19 GMT

@guiness56 I read the below link some time ago that mentions what I noted in my previous post. This information closely aligns with the FICO Score Simulator which emphasizes a person's two year payment history. Additionally, this helps explain the significant gains in the credit scores of those (post bankruptcy) following Soulmaster's 700 in 24 months post.

https://www.apgfcu.com/education-n-advice/money-management/financial-guidance/five-fico-score-factors-you-need-to-know.aspx

Re: How much/ How Long do 30 day lates effects your credit score?

Anonymous — Mon, 17 Mar 2014 03:31:09 GMT

I am guessing that has a lot to do with your scores at the time also. And possibly other factors like the type of late.

A 90+ day late is a major derogatory and will afftect your score for 7 years.

Re: How much/ How Long do 30 day lates effects your credit score?

CWESTL — Mon, 17 Mar 2014 06:09:11 GMT

@guiness56 You are probably right. The baddies that are on my credit reports went into default in 2008 (the height of the Great Recession) and are due to age off next year. Additionally, I have a number of closed accounts (i.e. mortgages, auto loan, student loans, CC's) that had great payment histories. A FICO score of 700 seems reasonably achievable if one maxes out the four components that make up 65% of the FICO score and have a decent recent payment history. The FICO Score Simulator estimates my score will be 704-734 in less than 4 months. If this holds true, that would mean a 700+ within approximately 10 months post bankruptcy discharge.

Re: How much/ How Long do 30 day lates effects your credit score?

Anonymous — Mon, 17 Mar 2014 14:32:54 GMT

I couldn't find on that site where anyone from FICO made those statements so it makes me wonder.

Here is one that is by FICO http://blog.credit.com/2012/06/how-much-will-one-late-payment-hurt-your-credit-scores-58676/

Re: How much/ How Long do 30 day lates effects your credit score?

CWESTL — Mon, 17 Mar 2014 16:57:15 GMT

@guiness56 This comment seems to be the most telling from the article you cited: “And while any negative score impact from a late payment lessens over time, this information will remain on your credit report for seven years and can be expected to continue to impact your score, at least to some degree, for much of that time,”

FICO's scoring system is somewhat complex (maybe intentionally so) and they're unlikely to publish the exact formula for payment history. However, this quote highlights that late payments will remain on one's credit report for seven years and impact one's score "for much of that time". "Much of that time" would seemingly lend itself to not including the entire seven years. The four year formula noted in the article to which I provided the link accounts for much/most (57%) of the seven year term that late payments remain on one's credit report. FICO scoring includes a number of formulas/scoring models, and many lenders utilize internal evaluation tools to make lending decisions. Additionally, some lenders exclude AU credit information from the scoring formula. Two year payment history mphasis with regard to the FICO Score Simulator, FHA loan criteria post bankruptcy, and anecdotal score success stories of those noted in Soulmaster's 700 in 24 months post supports the information provided in the article linked. There may be other factors involved, as everyone's credit profile differs, but generally speaking the last 24 months of one's payment history are particularly important.

Sorry, if I was long winded.

Re: How much/ How Long do 30 day lates effects your credit score?

Ridewithme38 — Thu, 27 Mar 2014 18:53:38 GMT

Ok, looks like i either got REALLY luck, or spoke to a BOA employee that was telling me what i want to hear to get me off the phone. Spent about an hour talking to a BOA rep on one of the backdoor numbers and reviewing my statements from 2012&2013. He agreed that those 30 days should be removed and said he would send me a 'packet' in the mail and inform the 'bureaus'. But that i should wait 20-30 days to check me credit report for them.

I'm over the moon! I know, these were only 30 day lates, so not MAJOR black marks....But they were my ONLY black marks on my report(besides utility and AAoA). I can't wait to get the packet!!

Re: How much/ How Long do 30 day lates effects your credit score?

Season79 — Thu, 27 Mar 2014 19:02:08 GMT

YAY!! Congrats... thats great news!

Re: How much/ How Long do 30 day lates effects your credit score?

Ridewithme38 — Fri, 28 Mar 2014 01:09:31 GMT

Thank you! Comsidering my most recent late was 12 months ago and only 30 days late, it probably won't change my credit score....I'm just overjoyed to be 'negative' free!