Length of time lates impact score

Gallager2014 · ‎04-12-2017

How long do lates impact your score? What are the important dates?

I have a late from 2011. According to the score simulator, when it drops off in about 18 months, my score should jump 75 points. I was under the impression that your score improves 1) after you resolve it and 2) after the 24 month timeframe.

Anonymous · ‎04-12-2017

@Gallager2014 wrote:
How long do lates impact your score? What are the important dates?
I have a late from 2011. According to the score simulator, when it drops off in about 18 months, my score should jump 75 points. I was under the impression that your score improves 1) after you resolve it and 2) after the 24 month timeframe.

It depends. 90+ day lates impact your score hardcore for 7 years. 30/60 day lates impact score for 7 years as well, but after 2 years their impact lessens. What is the severity of your late payment?

Simulators are garbage, so don't believe what they tell you. Do you have any other negative items on your report outside of the one late payment from 2011? If so, there's no way you'd gain 75 points, or even half of that. If it's a 90+ day late and it's your only negative item, it's possible you could see 75 points. If it's a 30/60 day late and it's your only negative item, I wouldn't expect you to see more than half of that. These are rough guesses, of course.

Gallager2014 · ‎04-12-2017

One bureau says 90 and another says 60. It is the only derogatory on my reports.

Anonymous · ‎04-12-2017

@Gallager2014 wrote:
One bureau says 90 and another says 60. It is the only derogatory on my reports.

What is your FICO 08 score on the bureau where it's 90 verses the bureau where it's 60?

Anonymous · ‎04-13-2017

On my Experian, I have two Perkins student loans that have defaulted. Credit reports shows it as collections. There are no 30 day or 60 day lates recorded. BUT, I have 22 months of 90 day lates. This debt is only listed on Experian.

My Experian FICO8 is 602. I've applied for a consolidation, and the funds were disbursed on April 7th. My NSDLS account shows the new loans, but it doesn't have the old ones paid off yet. So, just waiting for everything to hit my report.

Gallager2014 · ‎04-13-2017

713 with 1 60 day late and 3 90 day late

718 with 1 60 day late and 1 90 day late

721 with 1 60 day late and 3 90 day late

All from 2011 on a student loan which is now closed/paid. I know the biggest thing that should be weighing my score down is credit card utilization.

Anonymous · ‎04-13-2017

Those delinquencies are weighing down your scores far more than utilization is, unless your utilization is maxed out or something.

Gallager2014 · ‎04-13-2017

Utilization is 60%.

Anonymous · ‎04-13-2017

@Gallager2014 wrote:
Utilization is 60%.

Yeah, so the delinquencies are doing you more harm than the utilization.

It's almost impossible to quantify, but I'd estimate that your delinquencies are impact your score about 2X as much as your poor utilization.

The thing to keep in mind is that utilization is a relatively easy fix compared to delinquencies which can take a lot of work to get removed. The best advice here is two fold. One, start hammering out letters to your creditors to attempt to get those delinquencies removed. Below you'll find a link to the Saturation Technique which I came up with which has yielded me plenty of success with this as well as others. Second, pay that utilization down. Adopt a PIF philosophy. Basically, if you couldn't pay for it with a debit card, don't use your credit card for it. Keeping that idea in mind and acting on it will prevent you from getting yourself into trouble.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/The-Saturation-Technique-Best-GW-adjustment-o...

tmacar · ‎04-13-2017

Here's a trick that sonetimes works. File a dispute on the late payment(s). Sometimes, especially if the debt has been paid off, the creditor doesn't bother replying to the dispute. Then the late disappears. But if the lates are all student loans, don't count on the creditor not replying. Those guys seem to be right on top of anything that screws with someone's credit.