topic Re: How long does late payment affect score? in Rebuilding Your Credit

How long does late payment affect score?

Anonymous — Mon, 24 Sep 2018 23:10:59 GMT

Hi,

My husband apparently did his recertification for IBR a few months late last year. He did a forbearance to fix it on their end but on his credit report they all report it as over 90 days late. I know this will be on there for 7 years but how long will it take for the score to come back up or will it at all?

Re: How long does late payment affect score?

Brian_Earl_Spilner — Mon, 24 Sep 2018 23:14:52 GMT

I believe 90+ lates will count the entire time they're on the report. Someone will correct me if I'm wrong. The score wouldn't rebound until they fall off. Maybe you can get them to goodwill it off?

Re: How long does late payment affect score?

Anonymous — Mon, 24 Sep 2018 23:21:42 GMT

It’s student loans. I’ll look into it but my understanding is they will never change anything unless it’s incorrect.

Re: How long does late payment affect score?

Queen_Etherea — Tue, 25 Sep 2018 14:20:14 GMT

@Anonymous wrote:
Hi,

My husband apparently did his recertification for IBR a few months late last year. He did a forbearance to fix it on their end but on his credit report they all report it as over 90 days late. I know this will be on there for 7 years but how long will it take for the score to come back up or will it at all?

I have 3 accounts showing 120+ lates and they are from 7 years ago (set to fall off Jan 2019 according to Experian, when it's really this month...), but they are definitely still having an impact on my score. Every monitoring site says the things that are holding my score down are: 4 accounts with late payments (there's one 30 day late from 5 years ago) and also 2 accounts in collections (which are also set to fall off by the end of this year). I utilize the AZEO method, have 3 credit cards, a car loan, and perfect payment history every since that 30 day late from 5 years ago. I'm doing everything else as I should and my scores are still stuck in the 650's because of those lates/collections.

I don't know if they hurt you LESS as they age; I'm sure someone more knowledgeable could chime in on that, but they definitely hurt you as long as they're there.

Re: How long does late payment affect score?

Brooklyn2018 — Tue, 25 Sep 2018 15:15:42 GMT

30 day lates have less affect after 2 yrs and fade in time. These are considered minor derogs.

60 days lates affect the full 7 yrs but have less affect depending on your profile and 90 day lates affect the full 7-7.5 yrs. These are considered major derogs.

Hope that helps...

😊

Re: How long does late payment affect score?

Anonymous — Tue, 25 Sep 2018 15:34:19 GMT

So we called Navient and got more info. They actually gave him an address to send a letter and told him how to try and get it off. Apparently after he graduated they were sending paperwork to the wrong address. We’re finding our now if he did his exit counseling because that would have the correct address or if the school just never notified him to do it. This is completely horrifying that something as simple as a wrong address can destroy credit for 7 years. We’re still not sure how they had the incorrect address because the timing of it is such that he would’ve done a deferment or IBR when payments kicked in. Went on all of the sites - Navient, student loans.gov etc and can’t find any of the paperwork anywhere. Even on Navient it doesn’t show he was ever late or anything. I can appreciate that they have jobs to do but this info should be readily accessible to consumers especially where the debt is tens of thousands. It took the woman on the phone awhile to even find the problem herself. Credit reports just say invalid date so we didn’t even know what time frame it was from. Anyway, we’re going to try the letter explaining all of this plus we had a baby and he started a demanding job at that time so hoping the totality of it helps.