Trying to raise my score with a 120-day late account

[Anonymous]

Hey Friends...I am trying to build my score.....I have a TU Score of 615 with a 10 Year Credit History

About a year and a half ago a  account went into a late status

- First Premeir Credit Card: It was 120 Days in July of 09. It was Paid in full and has been kept current (with Zero lates since then). 

I read that a 120 day late can be just as bad as a bankrupcy.  Is this true?..and will my score recover as it ages like other dings?  And any idea how much time/increase I can expect?

Also, my wife added me as a authorized User on her $6500 Chase Visa Card.  It has showed up on my FAKO Experian Score (was 520) and boosted it over 40 points (now 564). It has not been reflected on my FICO TU & Equifax scores yet ....do you think the similar addition will happen to my TU (615) and my Equifax (567)?  I am trying to break the 620 Threshold to buy a house...so I am watching my credit like a hawk now.

Finally... I got a  Auto Loan about 5 months ago...and was told over time, with solid payment that will also help my score.  Any idea what kind of increase (if at all) over 6months/year of good payments?  Any other suggestions to continue to build my score?

[cdtotten]

You are correct that a 120 day late on your credit report is considerer a major dergotory... along the lines of a collection, or charge off account. It is having a severe impact on your score, and will so until it is removed. Each late annotation, the 30 day, 60 day, 90 day etc. will remain on your report until 7 years from the date of the delinquency. Like all derogs, it's effects will lessen over time. Most people seem to see a lessening on the yearly anniversary date of the derog.

Being added as an AU is a positive thing for you if the card has a long, clean history and has little or no utilization showing. Keep in mind that FAKO scores have no correlation to your real scores, so don't use those trends as a reflection of what has happened to your true FICO score.

If your auto loan is the only installment loan you have, then yes adding it would help your fico score by giving a better credit mix. Installment loan utilization doesn't really pay much into your FICO score, so I wouldn't expect a big jump or anything after 6 months or a year, other than the inquiry disappearing and your increased AAoA.

My suggestion is to try to goodwill the late payments with the OC. You will have to do a lot of explaining to your mortgage underwriter about that kinda late payment. I would also suggest pulling your EQ score here to get a good feel of where you stand overall. Don't bother pulling yout TU, as it is not the same scoring formula that your lender will be using.

[stan_the_man]

The quickest and easiest way to give a boost to your scores is if you can add long-term, clean history via AUs from your wife.

If your wife has any other open credit cards that meet these criteria, then I would have her add you as an AU as well:

1. A clean payment history

AND

2. Open date older than your AAoA (Average Age of Accounts)

If you're looking for more eyeballs and help, there are two other forums that are a great place to get help:

• Rebuilding Your Credit -- There's a ton of people who are going through exactly what you are right now
• Mortgage Loans -- There's some great people who post there, including some loan officers

I hope that helps.

[RobertEG]

One favorable thing I notice about this old 120-day late is that you say it was paid back into good standing. 

You were right on the fringe, at 120-days late, of the OC closing the account, doing a charge-off, and maybe additionally referring the debt to a debt collector.

The fact that the OC account remained open is a good sign that might indicate favorable consideration of a GW.

[Anonymous]

Thank you everyone for your help!  My FHA Mortgage officer said I need my Mid Score to pass 600.   My Mortgage officer says that the lates and the collections are easy to explain away for my scenario.  Plus I have a great Job history that really helps.  Currently my scores are:

TU 620

EQ 588 (12 FRICKIN POINTS OFF!!!)

EX (FAKO, I KNOW) 567.

All Those Lates will be approaching the 2 year mark in a couple months ....and yes the Credit Card that was 120 late is now "Paid Or Paying as Agrees" .  Everything else is in order...low debt to limit ratio, paying everything ontime....just OLD collections from a crazy ex wifes medical (anxiety) bills.  LAME>  And the Car payment is at 6 months this month and is my only installement loan.

[llecs]

To add, the 120 damage will fade over time. It may have been suggested already, but I would send GW letters to First Premier asking them to remove the lates. I'd tackle the CAs too as those can easily be hurting your FICO scores 100+ even at or near 7 yrs. The new car loan is hurting too, though most of the damage of adding it will fade between now and the one-year mark.

Finally, some lenders pull the same TU version as found on here (TU98) and others pull a newer version not found anywhere but from the lender. I'd aim for a 650 on TU just to be safe. For some, the TU score pulled by the lender is lower than the one from here, which may knock you out of contention (for TU anyway). But others actually have had higher TU scores than what was pulled through here. YMMV based on your credit profile.

ETA...and as you know, ignore the EX FAKO. You can easily have a 500 EX FICO at this point, or even a 650 EX FICO. The FAKOs out there can easily be 100+ points off from the real deal. I'm in the middle of the mortgage process myself and what worked for me was to ignore EX entirely (other than repair) and subtract 30 points from my TU FICO. I'd then take the lower of the EQ or TU FICOs (after subtracting 30) and used that lower score as an assumption for my lower mid-score. In your case, it is save to say that your low-mid score will be at least 588.

[Anonymous]

I think that is great advice...at this point I am subscribed to score watch on MyFico Equafax...and I am using that Score as my Middle Score, and your right, it currently stands at 588.

I am hopeful that this score will surpass 600 in the coming weeks/months.  The wait is lame.  My past was lame.  But the future is bright!

Another question.  I disputed 2 medical collections (they were my ex's)....both from the same CA.  Both have dissapeared from my Equafax report, but they are currenltly still on my TU report showing that they are being disputed...  Should I get my hopes up that they are going to drop off my TU report....which seems to update REALLY SLOW.  TU report still has not showed my Chase card with a limit of 6500!  And I am subscribed to FICO Quarterly Monitering for TU.  Or is Equafax going to trick me and have them re-post later?

[Anonymous]

So...I saw some Collections on my report......

Feb 2010: Medical, $2310

June 2006: Medical, $1011

Dec 2009: NON MED, PAID!!!

May 2006: NON MED, 215$

Would a PFD help my score if I got rid of the 2010 Medical for $2310? The company has agreed to do a PFD.  But I would have to pay it today.

[llecs]

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@Anonymous wrote:

Another question.  I disputed 2 medical collections (they were my ex's)....both from the same CA.  Both have dissapeared from my Equafax report, but they are currenltly still on my TU report showing that they are being disputed...  Should I get my hopes up that they are going to drop off my TU report....which seems to update REALLY SLOW.  TU report still has not showed my Chase card with a limit of 6500!  And I am subscribed to FICO Quarterly Monitering for TU.  Or is Equafax going to trick me and have them re-post later?

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They can re-report later on EQ, but with a condition that EQ notify you before they do so. It's also possible for the CA to sell it to someone else and they can report, though odds are it is gone forever. TU is always slow.

[llecs]

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@Anonymous wrote:

So...I saw some Collections on my report......

Feb 2010: Medical, $2310

June 2006: Medical, $1011

Dec 2009: NON MED, PAID!!!

May 2006: NON MED, 215$

Would a PFD help my score if I got rid of the 2010 Medical for $2310? The company has agreed to do a PFD.  But I would have to pay it today.

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Whether paid or unpaid, $0 or $10,000, the damage to your FICO score is the same per CAs (and COs too). You'd want it off. If they are open to a PFD, then take it, though you'd want that agreement in writing (you can always fax or even e-mail back and forth).