How 7+ Years Late Payments Fall Off Report?

shane82388 · ‎06-29-2015

So being a credit forums junky for years now I thought I knew exactly how this would go down but I'm a little confused now, I guess...

I just checked my Transunion report which still shows some old late payments from 2008 and 2009...

An example of my "confusion" is one of my Student Loans...there is payment history on that loan dating back from March 2007 and onwards (opened Feb 2007)...these recorded "OK" payments are well over 7 years old - why havent these payements fallen off as time goes on?

(My lates arent quite 7 years old yet on that account yet, but will be soon and I'm sort of not sure how they are going to "fall off" if this account's payments are being reported beyond 7 years?)

A similar sitiation is going on with my Capital One card, which is actually still open. - It had a 30 day late back in September 2008. Will this 30 day late just magically turn in to a "OK" payment in Septemeber when it turns 7 years old, or will that payment literally fall off and dissapear somehow, even though the older-than-7-years payments on that account that are "OK" are not falling off and still showing?

Anonymous · ‎06-29-2015

It's 7 years from the date of your first delinquency. When was your first delinquency?

shane82388 · ‎06-29-2015

@Anonymous wrote:
It's 7 years from the date of your first delinquency. When was your first delinquency?

Right, I mean I know if im late in March, for example, it will be 7 years later from that point the late should fall off and dissapear...but payments that werent late will stay on the report beyond 7 years?

I thought everything was just chopped off the end if its beyond 7 years?

shane82388 · ‎06-29-2015

@Anonymous wrote:
It's 7 years from the date of your first delinquency. When was your first delinquency?

So say I was late in Feb 2009 and then continued to be late every month until September 2009...

All of those 9 lates would fall off when Feb 2016 rolls around? Doesnt seem to make sense...Seems only the Feburary 2009 late should fall off, then the next month the March 2009 would fall off, and on and on...?

Anonymous · ‎06-29-2015

I think they all fall off together in 2016.

Anonymous · ‎06-30-2015

Late payments drop off at 7 years, individually. Once they drop off they will show no data.

Positive payment history will be shown on your CR for 10 years after the account is closed (or transferred). So if you pay on your SL from 2001 to 2015, positive payment history (minus baddies) will show on your CR until 2025, then the account drops off the CR.

Anonymous · ‎06-30-2015

My experience is that you may have to give the CRA's a nudge or two with stuff that doesn't drop off when it should. That is where I am with Experian. My score there is 100 points below the other CRA. It is because they are holding on to old information that should be gone, but isn't. I spent about an hour on the phone with them almost a week ago and was told that would change, but I am not sure when that will happen. So I guess I would say be vigiliant in watching your own file.

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Anonymous · ‎06-30-2015

@shane82388 wrote:
So being a credit forums junky for years now I thought I knew exactly how this would go down but I'm a little confused now, I guess...

I just checked my Transunion report which still shows some old late payments from 2008 and 2009...

An example of my "confusion" is one of my Student Loans...there is payment history on that loan dating back from March 2007 and onwards (opened Feb 2007)...these recorded "OK" payments are well over 7 years old - why havent these payements fallen off as time goes on? Because they are not derogatory.

(My lates arent quite 7 years old yet on that account yet, but will be soon and I'm sort of not sure how they are going to "fall off" if this account's payments are being reported beyond 7 years?) Derogatory payment history (lates) will be excluded as each late passes the 7 year mark. When the last late is excluded, the account will become completely positive and will report for ten years after its closure.

A similar sitiation is going on with my Capital One card, which is actually still open. - It had a 30 day late back in September 2008. Will this 30 day late just magically turn in to a "OK" payment in Septemeber when it turns 7 years old, or will that payment literally fall off and dissapear somehow, even though the older-than-7-years payments on that account that are "OK" are not falling off and still showing? It will become excluded and will essentilally become "no data" for that month. Most display formats will show "no data" as "OK" - it just depends on where you are viewing your file.

Anonymous · ‎06-30-2015

@Anonymous wrote:
It's 7 years from the date of your first delinquency. When was your first delinquency?

DoFD only applies to accounts that are charged off.

RobertEG · ‎06-30-2015

If your student loan was government insured or guaranteed, delinquencies are not excluded after 7 years.

The Higher Education Act, extended the excludion period for such delinquencies if the debt remains unpaid.

See the footnote appended to FCRA 605(a) for the relevant citation to the Higher Education Act.