derogatory aging

[Anonymous]

I was able to find lots of discussions about how long derogatory item stays on credit reports, but not how exactly they are aged for scoring purposes.  I'm trying to figure out if DoFD or DoLA or something in-between is used.  If an account reports 120D, and keeps reporting 120D for 12 more months, will the negative impact be reduced as more time passes since the account first started reporting 120D?

[chiefone4u]

The simplest answer is: every time an account is updated as late, it counts as a new late.

Your lates won't age (improve score) until after the account stops reporting late.

Once reporting late has stopped it can begin to age. If account is never brought current, the whole account and history will be removed (aged off) after 7.5 years from Date of First Default (most of the time they fall off sooner).

This answer can become more complex with rules about reporting that various states have created.

[FireMedic1]

Are you saying you never got caught up on the payments and kept paying while the 120day late was still factored in each month?

[Anonymous]

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@FireMedic1 wrote:

Are you saying you never got caught up on the payments and kept paying while the 120day late was still factored in each month?

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No, it's a hypothetical question.  I've read that some creditors will wait several months after an account is 120 days late, then report a zero balance and a charge-off.  Other creditors will just leave the balance reporting until it falls off the credit report.  It seems with the former, the late starts aging (so score goes up) after the charge-off.  With the latter, the late never ages because a "new" 120+D late is reported every month.

[FireMedic1]

The last late being the same will be the final countdown. The others will fall as they age if they are the same. Now if its a string of lates say 30,60, 90. They all fall at once. Make sense?