Late Payments or Charge off, which hurts your FICO more?

[fico-newbie33]

Just curious which will hurt my FICO score more, Delinquencies of 30-120 days late or a charge-off?

Any info is appreciated......

[Anonymous]

I would post this in the "understanding FICO scoring" forum. 

However, a Charge Off is a real baddie....a late payment that is isolated, is not a major problem.

Think of it this way...what is worse 1) getting your paycheck late or 2) not getting your paycheck at all

Cheers

[llecs]

I'd argue the lates are worse (esp. 90-120 days). DW just had an account status change from 120 days to Charge-off and her FICO on EQ jumped near 20 points.

[fico-newbie33]

Hmmm...two conflicting opinions. Can a third or fourth party contribute their opinions to which is worse...90-120 days late or a charge-off.

Thanks for your contributions.

[Anonymous]

My take is that the Chargeoff is about the same as a 30 day late.  But what makes most think that a Charge Off is worse than a 30 day is because it has to go through 90 then 120 lates before becoming that status.  But if it was a quick chargeoff it would count the same as a 30 day.  Good question!!  Does any Mod's have a say so?  BUMP 

[Anonymous]

they are not really that conflicting...

My comment was an "isolated late" typically meaning 30 days.

A 120 day late is almost the same as a charge-off....in fact, a 120 day late is normally the last thing to happen BEFORE a charge off.

Also, there are SO MANY variables in FICO scoring, you can see actual things happening like IIecs said above.  The problem is isolating the ONE thing that caused it (many times it is more than one thing and cannot be isolated).

Message Edited by pushedtoofar on 03-25-2008 02:11 PM

[Anonymous]

lates hurt for the first 2 years and then hurt but less as time passes.

A CO by an OC is a killer!!!!!   when they drop you can get 30-60 points  and that is with them reporting for the full 7- 7.5 years!

[Anonymous]

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HappyDays wrote:

lates hurt for the first 2 years and then hurt but less as time passes.

A CO by an OC is a killer!!!!!   when they drop you can get 30-60 points  and that is with them reporting for the full 7- 7.5 years!

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YOu get all those points because the lates drop with the CO. I had a CO account mysteriously change recently from CO to current. I gained 5pts on SW. All the lates still show.

 The effect of the lates and the duration of that effect vary with the severity of the lates. A 30 day hurts less than a 60 day. Which hurts less than a 90 day, etc. Also the longer the late the more it affects your scores.