Missed Payments, High Credit Inquiries impact on credit

[Anonymous]

Do those factors ever go away or drop off at some point? My Equifax has credit inquiries from 2014 and 2 30 day missed payments on 2 cards (1 card for Jan and April 2015 - card paid off, 1 card for Sept and Oct 2015) but both now in good standing.  Can the missed payments be deleted some how since the cards are in good standing.

[9CLINE]

Keep cards in good standing this will help in time to diminish the lates as they age.. they will come off in 7yrs,but hurt less as they get older.. also inquires age off in 2 yrs.. do a search of forum for more info on early deletion and GW letters,,,there is wealth of info on here about these 2 topics..
Best of luck on your credit journey !!!!!

[tufa4311]

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@Anonymous wrote:

Do those factors ever go away or drop off at some point? My Equifax has credit inquiries from 2014 and 2 30 day missed payments on 2 cards (1 card for Jan and April 2015 - card paid off, 1 card for Sept and Oct 2015) but both now in good standing.  Can the missed payments be deleted some how since the cards are in good standing.

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Inquiries will remain on your report for 2 years but will only affect your credit score for the first 12 months.

Missed payments will obviously hurt your score - the more you have and the more recent they are the worse the affect will be - and it will be considerable in the early stages. The card being in good standing now is great but that does not somehow get the missed payments deleted. In theory, missed payments can never be removed from your report until they fall off naturally after 7 years or so - they are a picture of your credit standing and are needed by future creditors to determine your credit worthiness. Now, in practice, they are deleted all the time through the practice of "good-will removals". Basically you get your account back into good standing, keep it that way for sometime, and then request that the creditor remove the late payment, not based on any law, but simply as a favor. Some do it, some do it after many, many requests, and some don't. I had one once, one 30-Day late, and it took a full year of good will requesting every couple months or so but someone on their end finally agreed to remove it, my story on that:

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Capital-One-30-Day-Removal-Request-Update-Suc...

[takeshi74]

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@Anonymous wrote:

Can the missed payments be deleted some how since the cards are in good standing.

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You definitely want to aim to have no derogs on your report.  Hit the Rebuilding subforum and carefully research to see what you can do.

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@Anonymous wrote:

Do those factors ever go away or drop off at some point?

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They do but don't just wait for dergos to fall off.

Do whatever it takes to avoid dergos in future.  Not only can they have a significant impact and hold yo udown as long as they're on your reports they can be a pain to remove and simply not possible to remove in some cases.  You want to have 100% Payment History and 0 derogs.  There are major factors for scoring and risk assessment and that's why they're the first suggestions on what to address for those rebuilding.

[RobertEG]

Each and every adverse item of information reported to a CRA has a credit report exclusion period after which the CRA is normally prohbited from including that adverse information in any credit report they issue.  FCRA 605(a)  identifies a handful of specific types oi adverse information, such as a collection, charge-off, judgment, BK, and tax lien, and identifies the specific period for that item.  Any other adverse item of information that is not specifically identified in one of the subsections of section 605(a) is then specvified as having an exclusion period of no later than 7 years from its date of occurence, which included monthly delinquencies.

The adverse information is not actually deleted from the consumer's credit file.  It is only (normally) prevented from being included in credit reports issued by the CRAs.

None of the exclusion periods are absolute.  FCRA 605(b) identifies certain circumstances under which a party can request a credit report that includes any and all adverse items in the consumer's file, including those thst are normally excluded.  The most common example is a creditor who is making an inquiry on a request for credit by a consumer that has a principal value of $150K or more.  In practice, credtiors rarely exercise the ability to obtain such full-factual credit reports, but they can do so.

[Anonymous]

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@RobertEG wrote:

Each and every adverse item of information reported to a CRA has a credit report exclusion period after which the CRA is normally prohbited from including that adverse information in any credit report they issue.  FCRA 605(a)  identifies a handful of specific types oi adverse information, such as a collection, charge-off, judgment, BK, and tax lien, and identifies the specific period for that item.  Any other adverse item of information that is not specifically identified in one of the subsections of section 605(a) is then specvified as having an exclusion period of no later than 7 years from its date of occurence, which included monthly delinquencies.

The adverse information is not actually deleted from the consumer's credit file.  It is only (normally) prevented from being included in credit reports issued by the CRAs.

None of the exclusion periods are absolute.  FCRA 605(b) identifies certain circumstances under which a party can request a credit report that includes any and all adverse items in the consumer's file, including those thst are normally excluded.  The most common example is a creditor who is making an inquiry on a request for credit by a consumer that has a principal value of $150K or more.  In practice, credtiors rarely exercise the ability to obtain such full-factual credit reports, but they can do so.

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Hello Robert!  I know you know a ton about the actual credit law.  As you say, in theory a potential lender can request the ability to see far beyond the 7-year mark, including lates and charge offs and so forth that might be 12, 15, 20 years old -- as long as the consumer is applying for a loan of more than $150k.  Nowadays that threshold would include almost all mortgages (if lenders truly availed themselves of this).

Question for you: is the reason that the 150k threshold seems so low because it's just an artifact of language from an old law?  I.e. the law as it was enacted (1970?) did not include an inflation adjusted provision?  And thus the 150k figure in the 1970 law is therefore still with us 45 years later?