Credit Denial and Equifax

[Anonymous]

I applied for a credit card from Citibank and was denied for two negatives on my report.  I have 10 TL in good standings never late.  All of my credit cards are below 20% usage, but they have a low limit, and I have an installment loan that is rising my uti.  My questions is how long will the neg weigh me down the last lates on the two were over 2 years ago, the last two years of them reporting was on time.  They are mortgages, one was paid off in full the other states foreclosure started.  I still own the home in question and it is paid in full.  How long should these still weigh in on my fico?

[marty56]

Depending on how bad the lates are, they could affect your score up to the 7 years it takes for them to fall off.  The other issue is that the decision to grant credit isn't just based on your FICO score and just having the item on your CR might be enough to get denied.

[Anonymous]

Your installment loan counts very little toward utilization.  If they were single 30 day lates, they do not hurt as much after 2 years.  60, 90 or 120 days will hurt much longer. 

[RobertEG]

I agree that % util on installment loans does not factor strongly into FICO sccorng, for they are, particulary if mortgage loans, predicted by FICO to be the last form of credit payment that a consumer would likely become delinquent upon.

But, using the same logic, a default in payment of a mortgage loan is viewed by FICO as being a serious major derog. Subequent payments dont erase the FICO blemish of missing a prior mortgage payment. It is an indication of serious credit problems at that time. And especially if that derog extended for more than 30-days, or led to any forecloure actions.

The derog will remain for 7 years from the date of each dilquency on payment.   They are major derogs.