Chargeoffs - Do the Lates Count Too?

[TenaciousRebuilder]

I have an old chargeoff that will age off my CR in a few months. This CO has a late payment reported at 30,60,90,120,150 & 180 days until it was closed.

Do the late payments associated with a chargeoff get tallied along with all other lates (double whammy)?

The lates associated with my old CO account for 6 of my 8 total lates. So when this drops off, I will have 2 remaining lates (90 & 150) and 1 collection. Think I'll see a decent bump?

[myjourney]

If I understand your question correctly .....

Yes when the account drops off so do the lates associated with it due to all history of that account will be gone

[guiness56]

Yes, the lates are also considered in your score.

Come the end of the reporting time for the CO, the CO and all lates will be removed and if the OC chooses to remove the TL nothing will remain.  If they choose to leave the TL, it will be in good standing.

Is it paid?

[TenaciousRebuilder]

unpaid.

[TenaciousRebuilder]

I just looked at a different screen and need to make a correction - when this account drops off so will 1 x 30-day, 1 x 60-day and 15 x 90+ day lates. So 17 out of 19 total lates will drop!

[Revelate]

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@TenaciousRebuilder wrote:

I just looked at a different screen and need to make a correction - when this account drops off so will 1 x 30-day, 1 x 60-day and 15 x 90+ day lates. So 17 out of 19 total lates will drop!

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Smells like  victory, but the remaining 90 and 150 day lates are major derogatories.  I don't know how lates are really handled, but I know that the difference between 1 vs, 2 tax liens is negligible under the FICO '04 model at least.  As a result assuming it's roughly calculated the same way, I unfortunately wouldn't expect much even if almost any negative information falling off is a big win, it just might not be immediately reflected in your score.

[RobertEG]

To my knowledge, FICO has never revealed the level of detail about their algorithms that would definitively answer that question.

There are two possibilities.  All derogs are separately considered, and their total effect summed,or higher levels of delinquency include the sum effect of any lower level, and thus only the highest level is used.

I would logically presume the latter, since any 120 late, for example, must necessarily have gone 30, 60, and 90, whether reported or not, and thus would more logicially be scored only on the highest level.  Similarly, charge-offs, being now become delinquent to the extent that the creditor has determined the debt to become uncollectible, is inhereintly in a major derog status.

However, that is just my speculation.

All that is known for certain is that the lower levels still remain in your CR until they all reach their individual exclusion dates, and thus are available in any manual review.