Late payment 180 days question

Anonymous · ‎07-17-2015

The account had no payments on it from 9/13 to 2/14. Shortly before it being sent to collections I grew up and started paying it down entirely until it was paid off(State farm credit card, first one). This September will mark the 2 yr anniversary of the first late payment, I've read several places that say 30/60 aren't bothersome after 2 years, it that's the case, starting in September, should I be expecting a solid rise in score? Will the 90+ also lose some kick after 2 years? Or will the fact that the same account ended up going 180 days late nullify that?
Account has long since been closed on me, hoping I have a built in weight that's going to slowly be less affective over the next 8 months.

Appreciate any input and advice

gdale6 · ‎07-17-2015

@Anonymous wrote:
The account had no payments on it from 9/13 to 2/14. Shortly before it being sent to collections I grew up and started paying it down entirely until it was paid off(State farm credit card, first one). This September will mark the 2 yr anniversary of the first late payment, I've read several places that say 30/60 aren't bothersome after 2 years, it that's the case, starting in September, should I be expecting a solid rise in score? Will the 90+ also lose some kick after 2 years? Or will the fact that the same account ended up going 180 days late nullify that?
Account has long since been closed on me, hoping I have a built in weight that's going to slowly be less affective over the next 8 months.

Appreciate any input and advice

If all you had were 30 lates then you would most likely see a rise in score once the final one passed the 2 year mark but you have 90+ lates and these are major delinq in Ficos eyes and they will cost points the entire time they remain on file. 60 day lates can affect for the full CRTP as well depending on your overall profile there was a posting awhile back that a single 60 day late dropping at 7 yrs yielded a rather large increase in Fico score (was more than 30 from what I remember). As all of them age you do regain some points and if the account wasnt COed then each will drop at the 7 year mark until the account becomes a total postive.

You can try to have the lates removed with a GW letter to the creditor http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Stories/td-p/1573680

RobertEG · ‎07-17-2015

I presume that teh creditor has reported progressive lates, from 30 to 180+ late, and the question is what effect there will be on scoring as the lower levels of delinquency become excluded or deleted.

There are two possible scenarios as to how a scoring algorithm can handle progressive levels of delinquency.

One is that each progressive delinquency is separately scored, and the combined effects of all are then summed.

The other is that reporting of a higher level of delinquency includes scoring impact for the lower level,, regardless of whether a lower level delinquency was reported.

Thus, the highest reported delinquency level alone would be included in scoring.

While Fair Isaac has never publicly disclosed that level of workings of their algorithm, logic would compel me to believe that the second method is used.

Anecdotal postings of others would seem to confirm this.

Thus, if 180+ lates are reported, I would not expect any score impact with the deletion or exclusion of 30 or 60 lates.

Additionally, I would take care in contacting the creditor for an account which went 180+ days late.

Federal law requires the charge-off of delinquent revolving accounts at that level ov delinquency ot prevent credtiors from over-stating their receivable assets.

A communication that results in a review of their reporting coutd result in the additon of a charge-off.

I would not mess around with any requests for deletion of lower level derogs.

Anonymous · ‎07-18-2015

In March i had them looked into by equifax , and apparently not the other Bureaus. I purchased a car with a 640 credit score at the time with equifax, since then i've opened up a Credit card, had one closed and deleted from my report. My score now on equifax is around 578(thought thats with half my balances reporting) at the end of this month, right around the 27th, i'll know for sure what my score would be unblemished by utilization, but i feel like my poking around may have hurt me. I find it a little hard to believe that even a uti of around 40% will take off 50 pts right off the bat alone. My experian meanwhile at this very second is trodding along at 661. However, the SFB card was eventually paid off before they could report(it was literally days from being charged off), So i dont think there's any worry there. The only different I THINK is that experian reports it as "120+ days late" whereas Equifax says 180. Maybe before it didn't say 180? I don't know for sure. I don't think they can do anything retroactively to hurt me...hopefully? I mean i paid the balance in full as soon as i became credit aware and had the funds to do so.