3 lates - when will my scores improve?

[Smooth_J]

I currently have three trade accounts that were 30 days late: June 2024, July 2024 and August 2024. 

My current FICO8 scores are: EQ 650, TU 668, and 631. They have been floating around that for the last several months.

When should I expect things to start improving? Is it 1-2 years after the 3rd late, or from the first late?

[Thomas_Thumb]

The score penalty associated with 30 day lates should lessen noticeably at 12 months and have been reduced by more than 60% once 24 months is reached. For a string of lates CRAs look at date of first delinquency, DOFD, for the string falling off reports. Fico looks at QTY and recency of lates when calculating a penalty. So, the most recent late for scoring.

Note: the lates will continue to impact score for a full 7 years but, impact of 30 day string should taper to 25-30 points in years 3 to 7.

[Smooth_J]

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@Thomas_Thumb wrote:

The score penalty associated with 30 day lates should drop noticeably at 12 months and by more than 60% at 24 months. For a string of lates CRAs look at date of first delinquency, DOFD, for the string falling off reports. Fico looks at QTY and recency of lates when calculating a penalty. So, the most recent late for scoring.

Note: the lates will continue to impact score for a full 7 years but, impact of 30 day string should taper to 25-30 points in years 3 to 7.

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I logged into my Experian this morning, and since it was the 1st of May, my score jumped up 10 points. According to the reasons, another month has passed since the most recent late and a few other small items too.

[Thomas_Thumb]

Good to see.

Score improvements as 30 and 60 day lates age do happen periodically throughout the aging process - not just at 12 month intervals. The penalty reduction curve is steepest between 6 months and 24 months and then tapers to a near constant penalty somewhere between 48 and 60 months.