So despite having a lengthy journey ahead of me to become debt free the only real derogs on my profile are three 30 day late payments (one 4 years ago, two from 2 1/2 years ago) on three current/open accounts. I know the the longer it is from the time of the late payment was the less it impacts my score but my question is what happens if the account is still open/current after 7 years? When I run a 3B report after those 7 years will my report still get dinged for 'number of missed payments' or after those 7 years are up are they truly gone from my report?
Planning on getting a new car in 4-5 years and it would be really nice if they were gone...
@sportsguy83 wrote:So despite having a lengthy journey ahead of me to become debt free the only real derogs on my profile are three 30 day late payments (one 4 years ago, two from 2 1/2 years ago) on three current/open accounts. I know the the longer it is from the time of the late payment was the less it impacts my score but my question is what happens if the account is still open/current after 7 years? When I run a 3B report after those 7 years will my report still get dinged for 'number of missed payments' or after those 7 years are up are they truly gone from my report?
Planning on getting a new car in 4-5 years and it would be really nice if they were gone...
I'm pretty sure they will be gone.
@sportsguy83 wrote:So despite having a lengthy journey ahead of me to become debt free the only real derogs on my profile are three 30 day late payments (one 4 years ago, two from 2 1/2 years ago) on three current/open accounts. I know the the longer it is from the time of the late payment was the less it impacts my score but my question is what happens if the account is still open/current after 7 years? When I run a 3B report after those 7 years will my report still get dinged for 'number of missed payments' or after those 7 years are up are they truly gone from my report?
Planning on getting a new car in 4-5 years and it would be really nice if they were gone...
As @SouthJamaica has stated those lates will be gone/removed from your reports.
@pizzadude wrote:Agree with the comments above - also from a FICO perspective they're already likely having little to no impact on your score as they're all 2 to 4 years old.
This is what I thought as well but when I view my Discover FICO missed payments are listed as negatively impacting my score which is why I asked the question.
Once they're gone. If I remember correctly. My account that had 1 30 day late went to paid as agreed. Times lates 0/0/0.
As they age it will have very little impact because a 30day is the lightest derog you can have. What will be interesting is that when they are gone it will be a scorecard change for you and you will move into a "clean" scorecard. This will change how you are scored and it's possible that you could actually lose points in some scenarios. I'm fairly certain that dirty scorecards don't have a penalty for new accounts, but clean scorecards do penalize for new accounts (<12months old).
Reporting back would be a great help to understanding the impact.
This is interesting. I was under the impression that 60 day lates put you onto a dirty scorecard but not 30. Perhaps I am mistaken, also perhaps the multiple 30 day lates would put me there? In any case I will analyze the scoring differences when they're gone (it will be a while yet!) and report back.
@sportsguy83 wrote:This is interesting. I was under the impression that 60 day lates put you onto a dirty scorecard but not 30. Perhaps I am mistaken, also perhaps the multiple 30 day lates would put me there? In any case I will analyze the scoring differences when they're gone (it will be a while yet!) and report back.
Yes, I believe the mulitple 30s puts you in a dirty scorecard and only 1 30 could be considered "clean". Keep in mind that there are multiple versions of dirty, for instance a public record would be the "worst".