Experian score up 34 points after 30 day late removed.

[sjt]

Woke up this morning and saw that my Experian FICO8 Score went up 34 points from 753 to 787. I looked at my reports and found that a 30 day late from March 2012 fell off my report.

I thought a 30 day late impacts your score for up to two years so why did my score increase so much after the 30 day late fell off?

[Brooklyn2018]

Congrats!!

I would suspect...It is still considered a derog(though minor) and may have aged some but, a derog, nonetheless. Other things could have helped, like crossing AoYA, AAoA, UTL thresholds?? Again, just my suspicion.

Congrats, BTW!!!👍

😊

[Thomas_Thumb]

---

@sjt wrote:

Woke up this morning and saw that my Experian FICO8 Score went up 34 points from 753 to 787. I looked at my reports and found that a 30 day late from March 2012 fell off my report.

I thought a 30 day late impacts your score for up to two years so why did my score increase so much after the 30 day late fell off?

---

My understanding is a 30 day late will count against you for the full 7 years. I don't recall ever seeing anyone achieve an 850 score with a late on file even if everything else in a file is optimized. Referring to the below from ABCD, I interpret the graph as showing convergence of 60 day late score penalty with 30 days at 2 years and then both following the same curve there after.

..

[Anonymous]

---

@sjt wrote:

I thought a 30 day late impacts your score for up to two years so why did my score increase so much after the 30 day late fell off?

---

A 30 day late carries most of its weight during the first 2 years and is less impactful after that.  Were you watching your scores back when you took on the 30 day late originally?  Depending on your file, that late payment reporting may have costed you 60, maybe 100+ points at the time.  That being said, 34 points is considerably less than that.  If that 30 day was a 90 day late of the same age, you'd stand to see a score increase more to the tune of 70-80 points since well-aged majors carry much more weight than well-aged minors.

I'm assuming that this 30 day late payment was your only negative item present?

[sjt]

---

@Brooklyn2018 wrote:
Congrats!!

I would suspect...It is still considered a derog(though minor) and may have aged some but, a derog, nonetheless. Other things could have helped, like crossing AoYA, AAoA, UTL thresholds?? Again, just my suspicion.

Congrats, BTW!!!👍

😊

---

Nothing changed on my CR other then the 30 day late drop.

[sjt]

Thanks for posting the graph TT!

So with a 30 day late you can regain about 60 of the 100 points over 24 months, the remaining 40 will remain until the 30 day late falls off.

Why does it stop at the 24 mon mark and the 60 and 90 day lates continue to 48 months?

[sjt]

---

@Anonymous wrote:

---

@sjt wrote:

I thought a 30 day late impacts your score for up to two years so why did my score increase so much after the 30 day late fell off?

---

A 30 day late carries most of its weight during the first 2 years and is less impactful after that.  Were you watching your scores back when you took on the 30 day late originally?  Depending on your file, that late payment reporting may have costed you 60, maybe 100+ points at the time.  That being said, 34 points is considerably less than that.  If that 30 day was a 90 day late of the same age, you'd stand to see a score increase more to the tune of 70-80 points since well-aged majors carry much more weight than well-aged minors.

I'm assuming that this 30 day late payment was your only negative item present?

---

I wasnt really reviewing my reports back when the late occured. I propably did get a 100 point hit and gained around 60 points over 24 months.

[Anonymous]

---

@sjt wrote:

Thanks for posting the graph TT!

So with a 30 day late you can regain about 60 of the 100 points over 24 months, the remaining 40 will remain until the 30 day late falls off.

Why does it stop at the 24 mon mark and the 60 and 90 day lates continue to 48 months?

---

Because 60 and 90 day lates are much much more derogatory in terms of the calculated risk of complete default.

FICO's scoring is based strictly on the likelihood of a person at any given moment to default on their debt responsibilities in the future.  It does not analyze when a default might happen, it only estimates if one is likely.

If someone is 30 days late, they are likely to default in the next 2 years, but if they don't default, the likelihood drops massively.

On the other hand, if someone is 60 days late, historical trends say they are likely to default in the next 4 years.

FICO doesn't tell you if you're a good borrower, it tells banks if you are likely a risky borrower in the next 7 years.

[Anonymous]

---

@sjt wrote:

So with a 30 day late you can regain about 60 of the 100 points over 24 months, the remaining 40 will remain until the 30 day late falls off.

---

Keep in mind it's very profile-specific.  The numbers you referenced above may be about right on your profile, but could be way different for someone else.  And, that's when talking only 1 lone 30 day late.  Could be 75 points initially, 100, even 120.  When it falls off?  Maybe only 20, maybe up to 50.  When you're talking multiples, though, all bets are off.  It's possible if someone already has a recent negative item that the addition of another 30 day late could have little to no impact on their score.  Similarly, with the presence of another negative item the dropping off of a 30 day late around 7 years could have little to no impact on score as well.  Of course, there's every example in between these two book ends as well.

[Anonymous]

^^^Yep what BBS says is correct.  If all you have is ONE 30 day late and no other derogatories, then my graph is fairly accurate.  If you have multiple lates, or other derogatories, then you aren't going to get back all those points.

My chart assumes ONE account is late by that much time, with no other derogatories.

FICO's penalty is based on whatever is the worst (typically) in a category.  So having 3 accounts 90 days late with 1 account 30 days late means you may get 0 points for dropping the 30 day lates from your history.