Need help with EE for Experian

[Anonymous]

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@Red1Blue wrote:

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@Anonymous wrote:

@Anonymous I made the payment on the 30th day at 7:34pm.  The payment was due on Jan. 27.  I made the payment on 2/26.  They said the cutoff time for the Federal Reserve is at 6:30pm therefore causing the payment to post to the account on 3/1. 

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I think it only matters you made the payment on time. I dont think it matters when the company chooses to credit it to your account. I have paid my payments on the due date and never had a problem with the payment.

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I have definitely become late when the due date time has passed, even if it is on the same day it was due. Got hit with late fees and interest. It depends on the banks terms

[Anonymous]

@Anonymous 

This is - in my opinion - a very good post.  It clarifies some things that cause lots and lots of confusion for most.  I know that it did for me!

And EE (aka, early exclusion) is only applicable to an account that has been - among others - charged-off.  Gonna keep it to a charge-off here.  So, when you have an account that has been charged off, it will stay on your credit report for seven years and six months from the date of the first late payment that resulted in the charge-off.  Now, this is all 'general information'.

And, if I am not mistaken, you go to the CRAs (Credit Reporting Agencies - aka, Transunion, Equifax, Experian) to make that EE request.  And, you have to go to all three (again, if I am not mistaken).

And that touches the topic of what constitutes a 'late payment'.  This can also cause a lot of confusion.

Take the example that you have a  Capital One credit card and that it has a "Due Date" of July 3rd.  Now, this is different from the "Billing Cycle Close Date".  So, you somehow forgot about that date (July 3) and you remembered on July 10th and made the payment (either the 'minimum due' or something higher than that)!

So, does this result in a so-called Derogatory Comment on your credit report?

No, it does not.

It will very likely cause a situation for you with Capital One in that you will have to pay the $35 late fee (or whatever that fee might be).    But that is an internal thing between you and Capital One.

What would create a 'Derogatory Comment' on your credit report?

Take that same example.  Your Captial One credit card has a due date of July 3rd.  Say that you have had some unexpected expenses and that you were not able to make said July 3rd payment.  Additionally, these unexpected expenses created a bit of a short-term financial hardship for you and you were strapped for cash for 45 days.  So, that means that you would not be in a position to make that July 3rd Capital One payment until August 18th (or so).  Come August 3rd Capital One is going to report to the three CRAs that you missed a payment and you will now have a Derogatory Comment on your credit reports.

For a charge-off to occur, you would have to continue to miss that "3rd of the month" payment to Capital One for six months (so, you missed the July 3, August 3, September 3, October 3, November 3, and December 3 payments to Capital One).  Very likely Capital One is going to "charge-off" your account on December 4 (forgive that detail if incorrect....maybe someone with more experience can assist with specific details here?).

So, that "Charge-Off" stays on your credit report for seven years and six months from that July 3 "missed payment" date (as that was the first missed payment that directly led to the charge-off).

I want to clarify the "directly led to the charge-off" comment as this also initially caused confusion for me.

Lets just continue with the Capital One example.  Lets say that you have had this specific credit card for two years.  And lets say that you have two missed payments that were reported to the Credit Reporting Agencies: one in April, 2020 and one in December, 2020.   Each of those missed payments was an isolated incident.  Meaning, it was a one-off.  You did not continue to miss any payment due dates.

However, with this July 3 payment you - in my example - will miss six payments in a row.  So, that July 3 payment is the first of six consecutive due dates that you missed.  So, July 3 is the first missed payment due date directly led to the charge-off.

Hopefully this info is (a) accurate and (b) helpful.

[OmarGB9]

I also wanted to point out, because no one else addressed this, even if all those accounts did qualify for EE as far as being COs or collections, on some of them you were asking much too early. EX only does 3 months of EE, 2 of which are already included in the "on record until" date. This means you can only ask for EE 1 month prior to that stated date at the earliest.

In your case, for some of those accounts, you were asking for EE on accounts that were due to age off too far into the future. The accounts I'm specifically referring to are the two Navy accounts, and Kay Jewlers. The earliest you could request EE of a CO/collection on those would be September for Navy account 1, October 21 for Navy account 2, and 9/22/21 for Kay Jewlers.

One more thing, due to the Higher Education Act, I believe the lates on the student loans stay until the loan is paid in full. The HEA supersedes the FCRA on the reporting of lates, so the 7 year exclusion wouldn't apply here, unfortunately. @calyx can correct me if I'm wrong.

[calyx]

@OmarGB9 is correct that the HEA supercedes the FCRA (until the loan is paid in full).   Luckily (?!) the lates will probably fall off on their own since things are automated.   I would not request an EE for the student loan lates, just to keep things simple.