Still confused about how 90 120 150 180 day lates affect your score for the seven years

[danny4l]

I am still confused how the 90+ lates affect your score over the course of seven years.  I have seven Sallie Mae 180 day lates from 2010 which are supposed to come off by mid 2017.  My FACO is 621 right now (with a medical judgment and some medical collections) so will I see a major improvement in 2017 or will I see a gradual improvement every month till 2017?

The way I am understanding it is that the 90+ lates impact your score for the whole seven years and then your score improves after the seven years are over.

If you can clarify this, I would appreciate it.

[guiness56]

90+ lates are considered major derogatories and do affect your score for most of the seven years.

After they start to fall off, depending on what else is on your CR, you should see a gradual increase.

[danny4l]

So in other words if they, lets say, brought you down 100 points, will they continue bringing you down 100 points for the seven years or is it possible that by 2015 they might only be bringing you down 50 points?

[Shogun]

+1 to your assumption.

They do fade over time and affect your scores less.  30-60 days lates are considered minor derogs and fade quickly, usually by 2 years they aren't affecting at all.  90+ will affect your scores until they fall off however their affect does fade over time.

[danny4l]

I just need clarification on what you mean when you say that "their effect fades over time"

Give me an example.

[Shogun]

I can't give you an exact number, but I can give you an example.

Say everything on your CR gives you a score of 750.  But you get hit with a 90 late, and it drops to 620 or so.   As it ages, it will affect the score less and less  so after 4 years, maybe it's only dragging you down to 700.  It's still affecting it, but not as much.

[danny4l]

I understand now.  I was thinking that when the 90 day late drags your score down a set number of points that you lose those same points for the whole seven years even if your score improves in other ways.

I guess I can live with that.

[Shogun]

That would be nice.  But the algorithm is kept a mystery.