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A question?

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Anonymous
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Re: A question?



naf wrote:
 
Could I be denied a loan or receive a higher interest rate due to those late payments, eventhough my score is now okay?

Yes.  My past baddies haunt me even though my score is 700+...
 
Message 11 of 12
haulingthescoreup
Moderator Emerita

Re: A question?


@Anonymous wrote:
. . . .However, I DO have a very poor history with late payments galore ~ Therefore, I am still very concerned those late payments will some back to haunt me when I shop for a new car and my credit history is pulled.
Could I be denied a loan or receive a higher interest rate due to those late payments, even though my score is now okay? I know I probably sound super-paranoid, but those late payments embarrass me and, as I said, I'm afraid they will come back to haunt me.
Thanks ~



One thing that you get dinged for is "multiple accounts with missed payments," even if they might have just been 30-days and are several years old. Oddly enough Smiley Wink , I just happen to have a FICO comment about that handy:
You have multiple accounts showing missed payments or derogatory descriptions.

Number of your accounts with a missed payment or a derogatory description
3 accounts

About 93% of FICO High Achievers [?] have no missed payments at all. But of those who do have a missed payment, it happened nearly 4 years ago, on average.
Your FICO score takes into account missed and late payments in a few ways. These include the number of late payments, how late they were and how recently they occurred. Your score was hurt because your credit report shows multiple accounts with missed payments or derogatory descriptions [?].

What to do about this: If the late payments on your credit report are valid, you should focus on continually paying all your bills on time. This will demonstrate a good payment history and these late payments will have less of a negative impact on your score as time passes.
It does affect your score if you get this little gem, and it might well affect the rates you get and so forth.

I guess the assumption is that it's not rare for someone to have multiple lates on one or two accounts, but if they're on 4 or 8 or 10, there's a pattern.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 12 of 12
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