Number of 30-day lates, age, and affect on score

GolfNut · ‎12-08-2009

Can anyone provide some insight as to how 30-day lates affect scores, how the damage subsides as they age, etc? Are there any age thresholds (ex. less damage after 2 years old)?

llecs · ‎12-08-2009

GolfNut wrote:
Can anyone provide some insight as to how 30-day lates affect scores, how the damage subsides as they age, etc? Are there any age thresholds (ex. less damage after 2 years old)?

New 30 day lates can easily drop your FICO score by 50 or so. It all depends on your scoring bucket, how many lates you have currently, and your overall payment history. For example, if you had multiple collections reporting, a new 30 day late won't hurt you as bad as if you had a pristine history.

The damage gradually fades, and some say within a couple of years, the damage is nonexistent per your score.

RobertEG · ‎12-08-2009

On the average, 20 pts initially, and a drop of about 1/2 pt a month for two years.

GolfNut · ‎12-08-2009

So I have 5 lates (some very old), but the most recent is 2 yrs 10 months. So are you saying that since all of them are over 2 years that this is not impacting my score at all?

MarineVietVet · ‎12-08-2009

@GolfNut wrote:
So I have 5 lates (some very old), but the most recent is 2 yrs 10 months. So are you saying that since all of them are over 2 years that this is not impacting my score at all?

No one can say with 100% certainty how any negative item will impact a score. The effect on your score should be minimal however.

IMO (which according to my wife is not worth much).

Anonymous · ‎12-08-2009

@GolfNut wrote:
So I have 5 lates (some very old), but the most recent is 2 yrs 10 months. So are you saying that since all of them are over 2 years that this is not impacting my score at all?

Because FICO is a comparative analysis, and FICO states that on average FICO high achievers that have a late are 4 years or older, I would estimate that you are hurt by FICO for at least 4 years. However, beyond 2 years the derog effect is much less than if newer than 2 years.

I think that there is an effect from multiples as well.