Impact on scores - 30D, 60D, 90D

[Anonymous]

Hi all -

I have some lates on my credit reports. I'm wondering what point impact a 30, 60, and 90D late have on scores? Does the impact diminish over time? And if so, by how much?

I've been 100% on time for close to 4 years now, usually near zero utilization, but I have some 5-6 year old lates still on my reports. No installment loans or mortgages (in fact, no debt at all), but my credit scores are in the high 600s to low 700s. They took a hit when we paid off the mortgage, but have never really rebounded from the trouble I had several years ago.   Thanks!

[Anonymous]

The 30 probably isn’t doing much to your scores at this point. The 60 is hurting you though and the 90 is definitely giving your scores a beating, and will until it is gone. It’s considered a major derogatory and will hurt for every minute it’s on your files.

[Trudy]

As we know everything is profile dependent.  But I received 50 pts on TU when my last 30D was removed and at the time it was 6Y1M old.  All accounts in good standings for payments and UTL.  A few days ago that same 30 day was removed early from EQ without a request for EE and I received a 37 pt increase with a CC UTL that crossed a threshold I haven't in some time.  For the past nearly 4 yrs my CC UTL has been below 8% overall and individual CC never greater than 6% until July 2019. 

So with an overall CC UTL of 13%, 2 individual cards at 21% and 27% (the rest at $0), 2 out of 10 revolvers, I received a 37 pt increase for removal of a  single 30D which was my only derog left set to expire in 4 months.

So far my profile indicates a lone derog of one 30D holds at least 37 - 50 pts at 6Y+.  Will see what happens when it is removed from EX.

[Anonymous]

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@Anonymous wrote:

I have some lates on my credit reports. I'm wondering what point impact a 30, 60, and 90D late have on scores? Does the impact diminish over time? And if so, by how much?

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When it comes to late payments, the constraint to score growth is going to be the worst severity late followed by the age of that late and/or most recent late. 

As a general rule, a minor delinquency will lose 2/3 of its [initial] adverse scoring impact after 2 years and the final 1/3 when it goes away at ~7 years.  Conversely, a major delinquency will lose just 1/3 of it's [initial] adverse scoring impact after 2 years and the final 2/3 when it goes away at ~7 years. 

So, if you've got a aged major (90 day) on your profile and it initially hit you for (say) 100 points, you can estimate that after 2 years you got back 30-35 points and when it finally falls off you'd get back the remaining 65-70 points.  That's of course assuming that it's your only late payment.  Add others into the mix and it makes it a bit more difficult to figure out.