@mew wrote:
Thank you, I think I am understanding it a little better...and the lates are 30 - 60 days. I can live with waiting...I will be taking time to save up for a down payment on a house anyway.
So another question, what are the "buckets" based on and how do you know what bucket you are in? Or do you ever really know? Am I compared with people my age, etc. How are people grouped together? Maybe that doesn't matter so much, but it is interesting.
If your most recent late was over 3 years ago, then the 30 days aren't impacting your score by this point. I'd ignore them. The 60s diminish per damage and aren't scored as bad since they are not considered a major derog. If the account is closed, I wouldn't do anything. If still open and you have a relationship with them, then you can always send a GW letter asking if they could remove the lates. I certainly wouldn't send anything at all if considering a new home in the next several months.
Scorecards (aka scoring buckets) are a mystery of FICO scoring. The score is complex and you are dumped in one of many scoring buckets and compared to others with a similar credit profile. This is actually a good thing. I use the analogy of college. Ever have the college professor that graded on a bell curve? If each of you took a test and your scored an 80%, but happen to have the highest grade in the class, then you really have an "A". Scoring buckets operate in a similar manner. If the economy goes to tank and everyone's score drops, then you are fairly compared to others and if your report isn't as bad, based on your bucket, the baddies won't ding as much (like your 60s). Like with baddies, a 21 year old isn't going to be compared directly to someone with a 40 year history or someone with a new BK won't be compared directly to someone with a perfect payment history. As your credit history changes, then you can be rebucketed as you move from one bucket to another. This can sometimes cause a score change in either direction, but in any case, it sets you up for an improved FICO score in the near future.
Starting Score: 400's