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## calculation for payment history?

Established Member

## calculation for payment history?

Anyone know what the formula is?

Message 1 of 13
12 REPLIES 12
Moderator

## Re: calculation for payment history?

I'm not sure what do you mean by calculation of payment history.

There are no percentages there, that's for entertainment purposes.

It's either "clean", or negatives are present.

Message 2 of 13
Established Member

## Re: calculation for payment history?

For instance how many lates throw you into certain thresholds of points

Message 3 of 13
Moderator

## Re: calculation for payment history?

It doesnt work like that. There is no certain percentage, nor does everyone experiences exact same number of points lost for identical derog.

It's sometimes possible to estimate range, but even those vary widely

I've seen loss of between 35 and 75 points for a single 30 day late on different profiles.

What you're asking about is the secret sauce.

Message 4 of 13
Valued Contributor

## Re: calculation for payment history?

@jlapalme wrote:

For instance how many lates throw you into certain thresholds of points

In the broadest terms the break point is no late payments and having a late payment. The "fluff" in CMS gives you a percentage but to the best of my knowledge you can't "dilute" a late payment with on time payments as far as scoring models go.

Scores hover around 800
Haven't been AZEO in over a year
Rome was not built in a day, neither is a good credit profile
Message 5 of 13
Established Member

## Re: calculation for payment history?

I have 2 cards each with 19late payments, job losses, if I pay off in full just one card, it rings me down to 19 late payments. That's the scenario I'm looking at.

Message 6 of 13
Valued Contributor

## Re: calculation for payment history?

@jlapalme wrote:

I have 2 cards each with 19late payments, job losses, if I pay off in full just one card, it rings me down to 19 late payments. That's the scenario I'm looking at.

Paying off or closing an account with late payments will not remove the late payments from your reports

Scores hover around 800
Haven't been AZEO in over a year
Rome was not built in a day, neither is a good credit profile
Message 7 of 13
Community Leader
Mega Contributor

## Re: calculation for payment history?

@dragontears wrote:

@jlapalme wrote:

For instance how many lates throw you into certain thresholds of points

In the broadest terms the break point is no late payments and having a late payment. The "fluff" in CMS gives you a percentage but to the best of my knowledge you can't "dilute" a late payment with on time payments as far as scoring models go.

I never understood why it doesn't count. I have 500 good payments on my open accounts, but lenders are focused on 7 lates 4 years ago. 4 years and 500 payments later they think I might be a lending risk still? 🤦‍♂️

Message 8 of 13
Moderator

## Re: calculation for payment history?

@Brian_Earl_Spilner wrote:

@dragontears wrote:

@jlapalme wrote:

For instance how many lates throw you into certain thresholds of points

In the broadest terms the break point is no late payments and having a late payment. The "fluff" in CMS gives you a percentage but to the best of my knowledge you can't "dilute" a late payment with on time payments as far as scoring models go.

I never understood why it doesn't count. I have 500 good payments on my open accounts, but lenders are focused on 7 lates 4 years ago. 4 years and 500 payments later they think I might be a lending risk still? 🤦‍♂️

Easiest explanation

Be unfaithful,  then explain to your wife/GF/whomever how you were faithful 99% of time.

Message 9 of 13
Established Contributor

## Re: calculation for payment history?

@Remedios wrote:

@Brian_Earl_Spilner wrote:

@dragontears wrote:

@jlapalme wrote:

For instance how many lates throw you into certain thresholds of points

In the broadest terms the break point is no late payments and having a late payment. The "fluff" in CMS gives you a percentage but to the best of my knowledge you can't "dilute" a late payment with on time payments as far as scoring models go.

I never understood why it doesn't count. I have 500 good payments on my open accounts, but lenders are focused on 7 lates 4 years ago. 4 years and 500 payments later they think I might be a lending risk still? 🤦‍♂️

Easiest explanation

Be unfaithful,  then explain to your wife/GF/whomever how you were faithful 99% of time.

Nailed it Remedios!

OP - 95% positive payment history is a fail, not an A when it comes to FICO.  Not that you failed because it happens, but don't buy in to the % of positive payments as a good thing unless its 100%.  Yes 95% is better than 85% but doesn't directly correlate to the score impact.  As noted above credit monitoring services provide a lot of fluff stuff like fair, good, very good, etc and it doesn't mean anything to a lender.  Unless you are able to get a creditor to remove a late through begging, than it's there for 7 years.  Each bureau may remove a month or some months before the 7 year mark but it negatively impacts your scores until it's gone.  The impact may lessen over years but could still pack a punch until it's gone.  I received between 27 and 50 points between the bureaus when my last late (a single 30 day) which was 6+ years old was removed a little early.

FICO - 8: 01/10/21 AU 8 BC 8
FICO - 9: 01/10/21 AU 9 BC 9
F5,F4,F2 01/10/21 AU... BC...
Vantage 01/10/21
As of 01/01/21:
AoOA - 24Y10M | AoYA – 0Y2M | AAoA – 11Y8M
Open: 11 CC: (2 reporting 0.11%, 8.53% : 0.12% AGG UTL) | 1 PLOC | 1 MTG loan: 69.09% UTL
Closed: 1 MTG loan | 2 Auto loans | (EQ) 2 CC, (EX & TU) 1 CC
INQ: (EQ) 0/24 | (TU) 1/24 | (EX) 1/24
Message 10 of 13
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