Unclear on when this situation would fall off

[SRT4kid93]

I have read that accounts with a missed payment will fall off your report 7 years after the first initial missed payment. 

but I have also read that closed accounts with missed payments won't fall off until 7 years after the account is closed. So it appears the "7 years from the first missed payment" rule only applies to accounts that are still open. Once the account is closed, it doesn't drop off for 7 years from the date you closed the account?

so let's say you have a closed installment loan where you missed a payment 3 years into the loan, and then paid off the loan/closed the account 4 years after that missed payment. 

will that missed payment fall off 7 years from that missed payment? Or 7 years from the date the account was closed ?

[JoeRockhead]

If you miss a payment and no other defaults until paid in full, only the missed/late payment would fall off in seven years. The rest of the account history  could stay up to 10 years from the date closed.

If you had consecutive missed payments that led to a charge off, the account would fall off based on the DoFD that led to the charge off/closure. 

[SRT4kid93]

No I understand that,

I am asking if the 7 year period starts when you first missed the payment, or if the 7 year clock starts once the account is paid off and closed?

[JoeRockhead]

The only scenario where that might happen is if perhaps you were 30 days late on the final payment of a loan.... even then the late could drop off and the paid closed account remains listed in good standing. I've had this very thing happen to me. Two bureaus dropped the entire account. One removed only the late payment and the account showed closed, paid in full with no adverse information. 

Singular, or even strings of lates/adverse information have their own clock. If a lender keeps the account open, or the  account was brought current then paid in full and closed at a later date. The lates would drop off as they age to 7 years.

[CreditCurious]

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@SRT4kid93 wrote:

No I understand that,

I am asking if the 7 year period starts when you first missed the payment, or if the 7 year clock starts once the account is paid off and closed?

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First missed payment, might be less than 7 years.  From personal, current experience:

I had a string of late payments running to 180 days late.  DoFD started 01/2018, account closed by Amex 06/2018.

It fell off TU on 5/2024 (6 years, 4 months) when I requested Early Exclusion. All record of my Amex totally gone, recalc AAoA.

Fell off EX 8/24 (6 years, 7 months), I did not request EE. All record of my Amex totally gone, recalc of AAoA.

Still showing on EQ.

However, if you brought your account back into standing, then closed it, I suspect the lates will only drop off 7 years after they happened.

[SRT4kid93]

Perfect that's what I was asking.

so in the case you were talking about where there were a string of late payments In a row.  They would drop off 1 by 1 as each payment hit 7 years correct? 

[CreditCurious]

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@SRT4kid93 wrote:

Perfect that's what I was asking.

so in the case you were talking about where there were a string of late payments In a row.  They would drop off 1 by 1 as each payment hit 7 years correct? 

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No, the entire string of consecutive delinquencies would fall off on the DoFD. Or maybe earlier as in my case.  Both TU and EX dropped 5-6 months of late payments all at once.

Now, if you had a 30 late, then brought it current, then 2 months later had a 30 late, in that case the lates will fall off individually becuase they are viewed as separate incidents, whereas my knuckle-headed choice not to pay Amex for 6 months in a row is treated as a single (really bad) event.

[SRT4kid93]

Ok so it goes by the date of the first missed payment unless there is time between your missed payments. Then they would fall off 1 by 1 as each individual payment hit 7 years of age?

[CreditCurious]

Yes, in my personal, recent experience on a closed card, the entire unbroken string of late payments drops all at once.  It might not even take the full 7 years, it did not for me.

From what I understand from others, an intermittent string of lates would drop off intermittendly.  

[SRT4kid93]

@CreditCurious 

ok yes that is where my confusion was. I thought the intermittent missed payments would drop off all at once once the first missed payment hit 7 years. I thought I read someone that All missed payments drop off once the first missed payment hits 7 years of age. 

but that must only be true if the missed payments all happened in a row unbroken. 

I also understand that as payments age, they have less of an affect.

Do you know if there is a certain point/age that late payments have to hit in order to have little affect? Or is it more of a linear thing where there's no drastic reduction in affect?

for example) let's say late payments affect your score in a exponential way. So once a payment hits 4 years of age, the affect is greatly deminished, giving you a large boost all at once but it still has some affect obviously cause it hasn't completely dropped off yet. 

An example of the linear progression would be: you would gain back a couple points here and there slowly but wouldn't ever see a large change until the missed payment drops off completely.