Pmt Status vs. 24 mo pmt history: which has greater impact?

[Aspireto850]

Hi Everyone,

Scoring ‘experts’,

Just curious which of the these two categories from the CR has a greater impact to your score: Payment Status or 24 month payment history?

I have an account that has 3- 30 day lates in the ‘24 mi history’ but the payment status shows ‘ Pays as agreed’!

One of the 30 day is incorrect but I don’t want to rock the boat by disputing it if the historical pmt section has a lesser impact than the payment status. Insight please!!

Thanks

[Revelate]

Any deliquency / derogatory dwarves payment history from a scoring perspective.

With the way scorecard assignment works, any negative is going to limit your scores regardless of how much good credit history you have on the current models in use now.

That seems to be changing some with the most recent models like FICO 9, vis a vis I'm at a 780 on TU FICO 9 with a 1 year old 60D late and at 801 EQ FICO 9 with a 1 year old 30D late and otherwise nearly 5 years AAOA which is spotless otherwise... but my FICO 8 scores for those two bureaus are 40ish points lower, and it gets even worse for the older models.

Nobody really uses FICO 9 much at this point, some CU's have switched, but none of the big dogs to my knowledge, and as such better to not have the negative information on there.

[RobertEG]

Each payment history delinquency has two primary components.

First is the overall period of the delinquency (e.g., 30/60/90/120 days late), and the second is how much time has lapsed since the last reporting of a delinquency status (paid, for example, termnates continued delinquency status).

Every account has both a current status (e.g., 60-late, paid, or pays as agreed), and a historical record of the prior account current status for prior months, which is stored under your payment history profile.  

The current level of delinquency for scoring purposes is the current status that was reported in the last updated reporting.  If it reports a continued level of delinquency, it can continue to increase each month, and become higher.  However, once the debt is discharged, any reporting thereafter will be paid or pays as agreed, which is no longer a delinquency status, and thus the period of final, overall delinquency for that chain is fixed, and the scoring impact begins to age.

For each delinquency reported in the same chain of delinquency, the period since initial delinquency will be the highest for the current month, and thus the current status will represent the overall period/level of delinquency, and prior months are for the same period, but at a lower level.

Howver, if you have multiple prior chains of delinquency in your payment history, such as 120-late a year ago, with the account then being brought current, and a new, 30-late reported for the current or prior month, the major level of the prior 120-late would likely trump in scoring impact, even though it has a year of aging since the period of delinquency was terminated.

It thus can depend upon the severity of prior delinquencies reported in your payment history profile as well as the time since that period of delinquency was terminated, as compared to the severity of the currrent status, which by definition has no aging.