120 day late in 2006

[jerden33]

I have a closed, sold to another lender, 120 day late from HSBC way back in 2006, this was sent to a collector that was paid.  How do lenders view something like that from that long ago?  Is this an immediate decline reason?  Thanks in advance!

[Anonymous]

I can't speak to how it might impact something like a mortgage or car loan, but you will absolutely be able to find a decent credit card if that's your most recent bad mark.

[rajbansjoshi]

I think 120 day late is a pretty serius thing but the bright side is that you just have one such violation and moreover, its pretty aged, considering that you had it in 2006. I had a couple of 30 day late payments a year back and in a year, I had been able to bounce back getting good CC offers.. So, I dont think you should have any problems..

[trumpet-205]

So you have a 120 days late and a paid collection? That's not very good. 120 days late is already serious enough (luckily it is quite old), but a paid collection is even worst (assuming it is still on your reports). 

FYI - Paid collection and unpaid collection are both very serious. Paid collection only matters when a loan officer do a manual review. When a collection is paid it does NOT improve your credit score.

[Anonymous]

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@jerden33 wrote:

I have a closed, sold to another lender, 120 day late from HSBC way back in 2006, this was sent to a collector that was paid.  How do lenders view something like that from that long ago?  Is this an immediate decline reason?  Thanks in advance!

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Trumpet makes a good point that I overlooked-- do you have a separate listing for a collections account on your credit report?  Because THAT could get you declined all over the place.  (But even then, you might be able to GW them into removing it.)

In the past, I know that creditors can enlist a collections agency without actually selling the debt, in which case, you might not have a listing from a CA at all...