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@medicgrrl wrote:
@Thomas_Thumb wrote:Nice chart - I've seen that before. The age impact is a bit generalized as 90 day lates impact score with little relief for 7 years. Impact of 60 day and 30 day lates fade away.
An isolated 30 day late will drop score for a couple years. However, for Fico 8 at least, it does not mean your profile is assigned a dirty profile. You can be on a clean scorecard with a 30 day late.
Will the impact of 30 and 60 day lates still fade away in the first 2 years if you have an older account with major derogs? Last major was almost 4 years ago on only one account. Most recent lates are 1 30 and 1 60 in September 2016. Majority of accounts have perfect payment history.
ETA: Although, based on the above charts, I'm not sure if they are "major" or "minor" derogs anymore! 90 day lates in 2013. Recent 30 & 60 day lates in September 2016
The FICO formula considers the recency of a late payment. In other words, a late payment in the past six months will be more severe than a late payment five years ago. However, FICO scores factor in the severity of the late payment. A 90-day late payment is more severe than a 30-day late payment. The scoring models also look at the number of late payments on a credit file. Thus, one late payment may reflect a simple oversight, but five late payments potentially reflect a more serious financial problem.
It is hard to say how your score would react given the 90 day late will still be on file and the presence of multiple lates. I suspect you won't see the same score improvement as you would if the 90 day late were not on file..
BBS has been through this and can provide more insightful feedback on how scores react to changes in late payment status on CRA reports.
Pasted below is a nice write-up from credit.com along with a link to the article
https://www.credit.com/credit-reports/late-payment-secrets-revealed/
How Long Do Late Payments Stay on a Credit Report?
Most negative items, including late payments, can stay on your credit reports for seven years, but not all negative information is equally damaging. Here’s the first late payment secret you need to know: A payment that is 30 or 60 days late isn’t going to have as serious an effect on your credit score as a payment that’s 90 days past due.
Because scoring systems are focused on predicting whether or not you’ll go at least 90 days late, a 30- or 60-day late payment that occurred long ago is actually not that damaging to your credit scores, as long as it is an isolated incident. It’s when your accounts are recently reported 30 or 60 days past due on your credit reports that your credit scores plummet temporarily.
How Much Does a Late Payment Hurt My Credit Score?
If 30- or 60-day late payments are an infrequent occurrence, they shouldn’t cause lasting damage to your credit score unless they are recent (last two years or so) or occur on a regular basis. In this case, the fact that you are habitually late with your payments can cause long-term damage to your credit scores.
It’s a whole new ballgame once you have a 90-day late payment, however. If you have been more than 90 days late (even just once), the credit scoring models consider you much more likely to do it again. One 90-day late payment will damage your credit for up to seven years. From a scoring perspective, a single 90-day late payment is as damaging to your credit scores as a bankruptcy filing, a tax lien, a collection, a judgment or repossession. Being 90 days late causes you to be viewed as a possible “repeat offender” and a higher risk to creditors. Here’s a summary of how late payments impact your credit scores: