Major Derogatories and the effect of ontime payments for 24 months

[rhall2009]

  I know that Major derogs hurt worse the whole time they are reported even more so than the 30 and 60(though i've read they have a lasting effect if they are the only bad items left on an otherwise clean file). My question is after 24 months do they lessen like the minor lates and if so do they lessen per trade line or my file. The reason i ask is because i cant for the life of me get Nelnet to remove my lates from my report and they are over 8 seperate tradelines. I am about to cross the 24 months line soon and wonder if i'll get a boost no matter how minute in my score. They are all no more than 120 days late. I am shocked on how high my scores are as it is but i'd appreciate a few more points I mean who wouldn't. Right now my scores are TU 642 EX 655 and EQ 620. This is with utilization at 55% which im working on over the next 30 days.

[EW800]

I don't have any hard evidence to back this up, however I will share that in my experience major derogs do seem to sting less after two years, or at least 3 years.  I had a foreclosure and a credit card settlement about 3-1/2 years ago or so, therefore my scores went through the floor.  It was at about the two year mark, and very much at the three year mark afterward that my scores recovered fairly well.  I went from the 520 range or so to about 700 in two years, and then 735-ish at three years or so.  

No doubt I am still being stung hard by the foreclosure though.  The foreclosure never hit my wifes reports (lucky her!), so she is now sitting at around 810 on the FICO 8 models.  Otherwise our reports are similar, thereofre it appears that I am still being hit for 60-65 points or so.  

I would bet that you are really getting dinged for the 55% Util.  When you get that below 30% or so and then under 10%, I suspect you will see nice results.  

Best wishes!  

[rhall2009]

 Thanks I appreciate your response. It's nice to see how other people have recovered in a similar situation. Gives hope that im headed in the right direction.

[Revelate]

Depends on the model.

I had a brand new spanking tax lien tacked onto my file, and it moved my FICO 04 and FICO 8 (Equifax) within 5 points of each other.

By the time that tax lien hit six months, there was nearly a 30 point disparity IIRC.  It was large and significant, and basically started as soon as it was tacked on.  That said I already had a tax lien on the file from 2010 so this might not apply to all files (especially purty ones) but there apparently is an age effect to them but I can't really quantify it more than that.

[elim]

The only derog on my reports is a 2010 tax lien and my scores still byte.   695 EQ, 725 TU, 675 EX.  I started the rebuild 20 months ago and have gardened for 6 months on 3 separate occasions (the last was almost 8). I think after this round i better stay in for a year or two (my old positive accounts are falling off and that's ganna' hurt).

I will have this lien on my reports for 8 more years...   yay  

[Revelate]

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@elim wrote:

The only derog on my reports is a 2010 tax lien and my scores still byte.   695 EQ, 725 TU, 675 EX.  I started the rebuild 20 months ago and have gardened for 6 months on 3 separate occasions (the last was almost 8). I think after this round i better stay in for a year or two (my old positive accounts are falling off and that's ganna' hurt).

I will have this lien on my reports for 8 more years...   yay  

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How are you going to have a lien on there for that long?  Short of the seemingly rare exception where it gets refiled:

1) 10 years from the date filed if unpaid

2) 7 years from the date filed if paid

[EW800]

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@Revelate wrote:

Depends on the model.

I had a brand new spanking tax lien tacked onto my file, and it moved my FICO 04 and FICO 8 (Equifax) within 5 points of each other.

By the time that tax lien hit six months, there was nearly a 30 point disparity IIRC.  It was large and significant, and basically started as soon as it was tacked on.  That said I already had a tax lien on the file from 2010 so this might not apply to all files (especially purty ones) but there apparently is an age effect to them but I can't really quantify it more than that.

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Very good point in regard to it depending on the model.  In my case, it was the FICO 8 models that seemed to recover pretty quickly after about two years of very good history and Util reduction, however the FICO 4 model seemed to move north much slower.  It seemed to be a bit "less forgiving" about my past.  Now at about 3-1/2 years after the fact, my FICO 4 score is still a dozen points or so behind FICO 8, however the gap is much closer now.