Sharing Impact of 120 Day Late After 7 Years

[FireMedic1]

Congrats! My one 30d has 14 months left. Cant wait to see what that does. Wont be 66 points. We'll see. I'll watch @Revelate and see how it goes then.

[Anonymous]

This is amazing!! Thank you for sharing, and to those who provided additional information. It's helpful to people with a major derog still on our reports.

[Anonymous]

I think the biggest takeaway here is that a major baddie, even aged nearly 7 years, if still present on your credit report can still be costing you around 70 FICO points.  That's a lot of points for a aged item.  This is why "payment history" is the biggest slice of the FICO pie and why the #1 recommendation for everyone is never miss a payment.

[Anonymous]

Is the score impact of a 90 vs 120 day late the same?
Also if there is a 60 day late and a 90 day late on different chains but same account, does the 60 day falling off have any score impact?

[Thomas_Thumb]

90 day and 120 day lates are in the same scoring category. Both strongly impact score for a full seven years.

The 60 day late falling off while a 90 day late remains will have little or no impact on score. - see illustration below.

Fico looks at recency, frequency and severity of lates in scoring. Lates are not addative. Fico primarily looks at the most severe late and recency of that late or group of lates.

Let's say a file has a two 30 day lates (2 years old), one 60 day late (2 years old) and a 90 day late on file. Let's assume the 90 day late is 4 years old. It is likely impacting score 80 points. The 30 day lates could impact score 30 points and the 60 day late could impact score 40 points. However, impact is not addative and the greatest severity late sets the tone - for the most part.

What is the net effect of the lates and subsequent removal scenarios?

a) All above lates on file => negative impact on score = 80 points

b) 60 day late removed, others still on file => remaining negative impact on score = 80 points

c) both 30 day lates & 60 day late removed, 90 day still on file => remaining negative impact on score = 80 points

d) 90 day late removed, 60 and 30 day lates still on file => remaining negative impact on score = 40 points

e) 90 day late removed, 60 day late removed and one 30 day late removed,  => remaining negative impact on score = 30 points

Side notes:

a) Frequency of lates is a factor. For example, two 30 day lates less than 2 years old may impact score 40 points while one 30 day late may impact score 30 points.

b) Although impact of individual lates is not addative, QTY is a scoring attribute as is recency. 

[Anonymous]

Congratulations