credit score

[Mendelssohn]

If you have ANY negative on your credit report, you should try to get it removed, no matter what the odds are of success.  Although the damage of a 30 day late is lessened greatly after 1-2 years, it can still keep your scores lower than your potential until the day it drops off after 7 years.  It can be the difference between mid-700s and 800+.

[TimT]

If you have ANY negative on your credit report, you should try to get it removed, no matter what the odds are of success.  Although the damage of a 30 day late is lessened greatly after 1-2 years, it can still keep your scores lower than your potential until the day it drops off after 7 years.  It can be the difference between mid-700s and 800+.

A 30 day late payment could lower it 50+ for a few years ?

[Mendelssohn]

A 30 day late payment could lower it 50+ for a few years ?

If that is the ONLY negative on your reports, yes.

It won't keep you from hitting prime credit scores before hand, but it will keep you from reaching your potential.

There are stories like this all the time on CB where someone has a final 30 day late payment fall off and their FICOs jump much higher.

[TimT]

If that is the ONLY negative on your reports, yes.

Could you elaborate on this part ?

[Mendelssohn]

Could you elaborate on this part ?

If you have other negatives reporting and get a single 30 day late removed, your scores will probably not move.

FICO uses different scorecards commonly referred to as scoring buckets. 

If you have ANY negative reporting, you will be on one of the scorecards for people with negative information on their credit reports. 

This makes the highest potential score you can receive much lower since you will never achieve a perfect score with ANY negative information reporting.

Once even a 30 day late is deleted, you will eventually be moved to a scoring bucket with a higher potential score.

[TimT]

If you have other negatives reporting and get a single 30 day late removed, your scores will probably not move.

FICO uses different scorecards commonly referred to as scoring buckets. 

If you have ANY negative reporting, you will be on one of the scorecards for people with negative information on their credit reports. 

This makes the highest potential score you can receive much lower since you will never achieve a perfect score with ANY negative information reporting.

Once even a 30 day late is deleted, you will eventually be moved to a scoring bucket with a higher potential score.

What did you mean by "if its the only negative" then it goes down a lot. If there's other negatives then the 30 day late payment won't lower it as much ?

[benjie1305]

What did you mean by "if its the only negative" then it goes down a lot. If there's other negatives then the 30 day late payment won't lower it as much ?

Correct. I mean it kinda makes sense.

[Mendelssohn]

What did you mean by "if its the only negative" then it goes down a lot. If there's other negatives then the 30 day late payment won't lower it as much ?

Correct, because if you have other negatives, your scores will be even lower.

If your report has charged off CCs and 90 day late payments, removing a single 30 day late won't put you in a scoring bucket for clean credit profiles.  There are much more serious issues going on in that case.

[TimT]

Shouldn't it drag it down the 50+ regardless what else is on the report ?

[benjie1305]

Shouldn't it drag it down the 50+ regardless what else is on the report ?

Why? It is all in relation to the rest. A clean report with a sudden negative activity will have a bigger hit then a dirty report with one more negative activity on it.

[Mendelssohn]

Shouldn't it drag it down the 50+ regardless what else is on the report ?

If you have a single 90 day late reporting, it will keep you out of the 700s in many cases, depending on your overall profile, until the 5-6 year mark.  A single 30 day late won't keep you out of the 700s, or even the mid 700s, after a couple years.

I think you are misunderstanding how scoring buckets work.  You can't simply add up all the negatives and positives and assign them a fixed value. 

You are put in a scoring bucket based on your profile, and compared to people with similar profiles.  A single 30 day late is going to put you into a scoring bucket for people with negatives on credit reports, but free of major delinquencies, and give you a higher potential score.  You will also be compared to people with more than one late payment, thus the potential to reach the mid 700s pretty easily.

[TimT]

So would a single 30 day late payment be "derogatory" ?

[Mendelssohn]

Derigatory refers to any negative.

[TimT]

Derigatory refers to any negative.

Ok, thanks

[Zalc]

Shouldn't it drag it down the 50+ regardless what else is on the report ?

Why? It is all in relation to the rest. A clean report with a sudden negative activity will have a bigger hit then a dirty report with one more negative activity on it.

Kind of like how Tzadikim are judged far harsher then average people when they do something wrong...

[Emkay]

So technically it may be worth to keep a small negative on your account to be put in a lower bucket?

[TimT]

So technically it may be worth to keep a small negative on your account to be put in a lower bucket?

If you plan on having additional negatives, that is.

[Emkay]

If you plan on having additional negatives, that is.

No, if I just don't wants to busy maintaining am 800+ score but want to he easily at an upper 700s

[David Smith]

If you have ANY negative on your credit report, you should try to get it removed, no matter what the odds are of success.  Although the damage of a 30 day late is lessened greatly after 1-2 years, it can still keep your scores lower than your potential until the day it drops off after 7 years.  It can be the difference between mid-700s and 800+.

I know two people with almost identical reports. One has a 30 day late (about a year old), and the other one is clear. About a 65 point difference (737 vs 802 EX from amex).

[Mendelssohn]

So technically it may be worth to keep a small negative on your account to be put in a lower bucket?

-1

Definitely not.