late installment payment

[CreditDrama85]

i was wondering do rolling/consecutive lates of 30 days for example vs. a 30 day late payment once every 2-4 months have the same effect? does fico consider one worse than the other?

[Anonymous]

Let's clarify for my simple mind:

January payment is late.  Then make that back payment, now February comes and is due, then late.  Pay back payment February but again late for March.

Is that what you mean?

If so, no rolling lates are not as bad as consecutive cumlative lates meaning

January 30 late

February 60 late

March 90 late

However, rolling 30's ain't no FICO picknic either.  Since a payment is being made monthly I would figure out how to get caught up and avoid the rolling lates, the late fees and other charges.

[RobertEG]

Creditdrama, the answer is no.  They do not have the same effect.  A 30-day late one month, folwwed by payment the next month, and then another, new 30-day late the following month are two minor delinquencies.  A 30-day late one monthh that matures into a 60-day late the next month puts a major derog on your CR.

Also, it could be important if the account ever goes into collection.  One resets your DOFD, the other does not.

Under the first scenario, you had a first 30-day late, then brought the account back into good standing the next month.  In the third month, you had a new 30-day late.  That new 30-day late resets your current DOFD in your CR.  Under the other scenario, the first 30-day late would remain as your DOFD.

Of course, this will only come into play if the account is charged off of placed into collection down the road, but they are not the same.

[CreditDrama85]

thanks. i was more so asking though if say in scenario 1 you have : jan 30 days late, feb 30days late, march 30days late vs. scenario 2 of jan 30 days late, feb current, march 30 days late, april- current, may30 days late. if fico sees a difference. does one scenario do more damage than the other? are they the same?

[marty56]

I have on my CR for my infamous BofA account:

30 days late 1 time (Nov 2004)
60 days late 2 times (Jan 2005, Dec 2004)
90+ days late 7 times (Aug 2005, Jul 2005, Jun 2005, May 2005, Apr 2005, Mar 2005, Feb 2005)

Which was continously late from Nov 2004 to Aug 2005.  The reason is that they payments for less then what BofA felt I should pay.  In my case, the worst late (120 days) dominates all the rest and I suspect the others have no effect on my FICO score since I didnt see any score bump for the 30 or even 60 day lates aging.

IMHO the 2nd 30 day late on the same account would probably not effect your score that much.  I suspect it's the worst late and the time between them that matters.