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Not paying several months than paying again scoring?

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Anonymous
Not applicable

Re: Not paying several months than paying again scoring?


@Anonymous wrote:

I had already researched that 30 days will only last about a year or so and then your score would start to go back to normal. But that 90 days was the big no-no and when that happens your score won’t rise again until it drops off!

This is not entirely true.  The damaging impact of a 30-day late does not vanish after 1-year.  That's the timeline for the damaging effect of an inquiry.

 

People here have conjectured that the damaging effect of a few 30-day lates begins to be softened after 24 months inside the FICO 8 model.  That's softened but not eliminated.  There's a lot of good reason to believe that conjecture.  It probably gets softened further later still (e.g. 4 years, etc.) -- assuming the person has been a good scout for 4 years.

 

The older FICO models (including the ones used for mortgages) are far less "forgiving" and the Day 30 late appears not to be softened substantially until it leaves the report.  Note that waiting for 7 years is not the only such strategy -- there are other strategies for removing the derog earlier.

Message 11 of 16
SouthJamaica
Mega Contributor

Re: Not paying several months than paying again scoring?


@Anonymous wrote:
Just curious what happens if you have excellent scores, 750 and above, then you go 4,5 or even 6 months without paying and then pick up again as if nothing happened. I know 90 days seems to be the magic number when your scores drop like an anvil, but how long before it kicks back....if EVER?

It kind of sucks that you can pay for decades and never ONCE be late in your entire life, but then something comes up where you have to go a few months without paying and then you go right back to paying again, but from a scoring standpoint, it’s as if Armageddon had started...

What happens is your scores are wrecked and stay wrecked for years.


Total revolving limits 650200 (530700 reporting) FICO 8: EQ 708 TU 714 EX 715

Message 12 of 16
iv
Valued Contributor

Re: Not paying several months than paying again scoring?


@Anonymous wrote:
LMAO! I loved the car analogy IV. I have to use that one in the future, but I’m going to claim credit for inventing it Smiley Happy

Take it! (Please! I certainly don't want any credit/blame for bad car analogies!)

 


@Anonymous wrote:

Because either way you slice it, it is absolutely NOT the same thing to go what I am predicting to be 120-150 days late before I start again and then COMPLETELY pay back the ENTIRE balances plus all interest and penalties, as the guy who decided to just default and take off to Mexico!!!

Thing is, though... from the lenders' point of view it IS absolutely the same thing.

 

By 90 days, and certainly by 120-150 days, they're already assuming that your accounts are a total loss. Just like that runner to Mexico!

 

And even if you do end up paying the whole thing off, penalties included...

 


@Anonymous wrote:

And if you think that’s fair, then I would have to wholeheartedly disagree with you! And to be clear, I have not as you implied “DEFAULTED”, I am in fact presently in default, and there is a huge difference. When I start paying again and get everything current, I no longer will be in “default”

...it won't probably won't be to the original lender.

 

Because by that point you have defaulted. They will have started collections, tried garnishments, marked the accounts as write-offs...

 

...and probably sold off the bad debt to a collection agency at pennies on the dollar. They aren't waiting around knowing that you plan to pay them later.

 

If/when you pay off the remaining debt, it'll be to the collection agency (who will be VERY happy to collect the whole amount, plus fees from you - for a huge profit on their investment), but the original lender(s) will still have taken the loss.

 


@Anonymous wrote:

So I think the more proper car analogy is comparing me to having ONE speeding ticket, to the guy who is going to get a dozen more speeding tickets because he continues to speed and I don’t. In which case his drivers license will be in much worse shape and his insurance will cost much more. With that in mind, my score should reflect better for me and not get worse as the guy who keeps on speeding...

Except that each additional 30 days late (per account!) is basically those additional tickets. And each one (30-60-90-120-150) is, metaphorically speaking, breaking the speed limit by more each time.  Eventually, your license gets revoked and you get banned from driving.

 

Getting a single 30-day late is the "ONE ticket" scenario - your 120-150 day estimate is repeatedly treating a 25mph school zone like the Indy 500. (ie: say goodbye to your license for quite some time.)

 

...ok, forget the car analogies. For your actual issue - have you communicated with your lenders, told them plainly what's going on?

 

If you can setup some sort of very minimal continuing payment plan, with a timeline for the full repayment, they MIGHT keep your accounts in-house and not sell them off. That way, you'd at least avoid the EXTRA negative items that would kick in with the collections accounts showing up on your reports, and you have a chance (if a small one) of them doing a goodwill removal of some or all of the lates at some point after your full repayment.

 

Not talking to them at all will let them assume that you've just pulled a "bust out", and they'll never hear from you (or get a dime) again...

EQ8:850 TU8:850 EX8:850
EQ9:847 TU9:847 EX9:839
EQ5:797 TU4:807 EX2:813 - 2021-06-06
Message 13 of 16
Anonymous
Not applicable

Re: Not paying several months than paying again scoring?

This is ALL hypothetical IV, reality my bags are packed, one-way flight to Mexico! LOL. I have to admit you do keep me chuckling (even if it wasn’t your intended purpose) specially when you said “ OK forget the car analogies” LMAO! I think about the time you said that, in my mind as I was reading, I had just come to the conclusion that I am now more confused with the analogies, than without...

Truth is, as far as I know, by emails, they would be glad to come up with a new arrangement. But I say by email because I haven’t answered even ONE out of 50 phone calls per day for the last few months.. no reason to go there because nothing is going to be achieved.

Wasn’t like I’m looking at a calendar and I could give them an exact date when payments will pick back up so it would’ve just been speculation, “we hate you” kind of talk, so I haven’t bothered.

But based on emails I am sure that every single one of these people would be more than glad if I contacted them and got on a new schedule with much lower payments.

But those calls and attempts cannot be made quite yet, getting close, as I still need a little more time to figure out when that’s going to happen.

It’s not like I don’t have income, but I need a full gallon of milk before I start pouring other peoples glasses! I guess we could call this the milkman analogy, and I guess the milk man drives a truck, so we’re still in the ballpark of car analogies!

But yeah I’m positive that after 90 days, which I think is right around the corner, if not already there, I’m not keeping track, is when nobody’s going to care much longer and throw it off to a collection agency! But until I have some firm dates and figure out this complicated situation I’m in, there’s just no need talking right now.

But during this lapse, I am accumulating a new slush fund which I must do to take care of food on the table for us all FIRST! So the time is rapidly approaching and I just hope they can wait a little longer for me to commence.

I’m not too concerned about any of them to be honest, except one. SoFi. I absolutely adore this company and I think they’re great. I have written them a couple internal messages. Not only do I owe them the most amount of money by far, I mean a huge amount, but they are also the ones that have left me alone which I just think is awesome!!!

But as I say I am not answering the phones, so it’s possible they could’ve started making a couple calls to me.. and I delete the voicemails before I even listen to them as I can already guess the rhetoric pretty much verbatim.

But I feel so absolutely guilty about not paying SoFi, they are the ones that make me toss and turn. The other companies who stick it to you with high rates and crap like that can wait. Yes, I know, part of the reason is because of people lik me who default, but my point is they never cut me too much slack. Or better said, they were not exactly looking out for my best interest......rate

SoFi on the other hand took care of me and, well, as I say, I feel real guilty not paying them. They are going to be FIRST come payday and I can’t tell you how bad I feel because of how much I love that company. They gave me a HUGE personal loan, that a family member is presently enjoying, with minimal effort on my end. In fact I did a write up about them here on the site I was so impressed.

Anyway thanks for the replies everyone and keep in mind I’m not looking for any advice about which way to head, and I do NOT mean that in a negative way. I just mean to say I was only trying to find out if I had to wait a full 7 years or if maybe two or three years down the road the scores would start to increase without having to wait for that long!
Message 14 of 16
Anonymous
Not applicable

Re: Not paying several months than paying again scoring?


@Anonymous wrote:

Anyway thanks for the replies everyone and keep in mind I’m not looking for any advice about which way to head, and I do NOT mean that in a negative way. I just mean to say I was only trying to find out if I had to wait a full 7 years or if maybe two or three years down the road the scores would start to increase without having to wait for that long!

Hey buddy.  As I mentioned earlier, there are are strategies you can explore that would not involve waiting for a full 7 years.  These strategies involve the creditor being willing to delete all the lates.

 

The strategies would mesh well with what your proposed overarching strategy is, which is to get back on the horse before Day 120 and begin making regular payments with (I presume) the goal of entirely paying all your debt off, and after that creating a history of perfect payments on all accounts.

 

Once you have been making perfect payments on all accounts for 25 months and all your CC debt has been paid down to 1% (for 7 consecutive months) I'd explore the Goodwill Letter Saturation Technique.

Message 15 of 16
Thomas_Thumb
Senior Contributor

Re: Not paying several months than paying again scoring?

Refer to the below link for a prime example of impact associated with going 90 days late on 7 of 7 accounts. Score 600 => 460.

 

https://ficoforums.myfico.com/t5/General-Credit-Topics/On-the-road-from-a-460/m-p/5340425#M265505

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 16 of 16
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