topic Re: What Does "Serious Delinquency" REALLY Mean? in Rebuilding Your Credit

What Does "Serious Delinquency" REALLY Mean?

DollazSense — Tue, 08 May 2018 21:56:55 GMT

Hey y'all!

Many of us know that phrase all too well. We apply for a CLI, a P2P loan, a credit card or we maybe we try to stretch our PayPal Credit (Comenity) credit line a bit too far...and this little phrase appears in our rejection letter.

Can someone confirm what "Serious Delinquency" specifically means?

Please tell me this only refers to late payments? You know, 30-day lates and the like.

My personal last "baddie" should drop off early-to-mid next year (It's from spring 2012). I'm hoping I will never see that little phrase again, if that is what "Serious Delinquency" means.

My credit report does not include (and has never included) the following: bankruptcy, judgment, tax lien, charge off, collection account, settlement.

The only other obstacle holding me back right now is my credit utilization ratio. In other words, I just need to pay my debt down and I will rise among the 700s and 800s ranks again.

Re: What Does "Serious Delinquency" REALLY Mean?

RobertEG — Wed, 09 May 2018 00:30:15 GMT

Terms such as serious delinquency or major delinquency are not specifically defined under the FCRA or the CRA credit reporting manual, and thus do not have precise definitions. The use of the term "delinquency" normally refers only to reported monthly delinquencies, and not all derogatory information reported to a CRA.

The credit reporting literature usually uses major derogs (as opposed to only major delinquecies) to refer broadly to any monthly delinquency that is 90-late or later, and/or any collection or public record adverse information, such as a judgment, tax lien, or BK.

Re: What Does "Serious Delinquency" REALLY Mean?

Smooth_J — Wed, 09 May 2018 05:54:20 GMT

Not sure if this is helpful, but I was hit with a "serious delinquency or derogatory indicator" and after being on the phone with myfico support, it came down to a comment on one of the accounts: Paying under a partial payment agreement. That phrase alone, according to support, triggered did it. I will hopefully know for certain once I get off this payment plan, and the comment gets removed.

Re: What Does "Serious Delinquency" REALLY Mean?

DollazSense — Mon, 14 May 2018 13:54:29 GMT

@RobertEG wrote:
Terms such as serious delinquency or major delinquency are not specifically defined under the FCRA or the CRA credit reporting manual, and thus do not have precise definitions. The use of the term "delinquency" normally refers only to reported monthly delinquencies, and not all derogatory information reported to a CRA.

The credit reporting literature usually uses major derogs (as opposed to only major delinquecies) to refer broadly to any monthly delinquency that is 90-late or later, and/or any collection or public record adverse information, such as a judgment, tax lien, or BK.

Thank you! I did not know some of this information. We really need more transparency in the credit reporting industry. Sheesh!

Re: What Does "Serious Delinquency" REALLY Mean?

DollazSense — Mon, 14 May 2018 13:55:38 GMT

@Smooth_J wrote:
Not sure if this is helpful, but I was hit with a "serious delinquency or derogatory indicator" and after being on the phone with myfico support, it came down to a comment on one of the accounts: Paying under a partial payment agreement. That phrase alone, according to support, triggered did it. I will hopefully know for certain once I get off this payment plan, and the comment gets removed.

Ohhh. That's interesting. I would have never guessed, though I should have. I know settlements/partial payments are frowned upon by many lenders.