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  • FIRST POST
    • xlnc99
    • By xlnc99 15th Aug 19, 1:41 PM
    • 280Posts
    • 11Thanks
    xlnc99
    How Long until a late payment becomes irrevlant
    • #1
    • 15th Aug 19, 1:41 PM
    How Long until a late payment becomes irrevlant 15th Aug 19 at 1:41 PM
    I just got off the phone to experian and they said its 6 months before they ignore late payments.

    I appreciate other lenders have different agendas and criteria

    On average when does 1 or even 2 late payments become insignificant? 1 year? 2 year?

    This is of course providing you have made payments on time since the last late payment on that account.

    Thanks
Page 1
    • Willing2Learn
    • By Willing2Learn 15th Aug 19, 1:44 PM
    • 3,798 Posts
    • 3,390 Thanks
    Willing2Learn
    • #2
    • 15th Aug 19, 1:44 PM
    • #2
    • 15th Aug 19, 1:44 PM
    I think the relevance of a late payment marker is determined by the lending criteria and policies of whoever you make an credit application with.

    Every lender will have different criteria.

    I don't agree with what Experian have said, as they are not the lender!
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • xlnc99
    • By xlnc99 15th Aug 19, 1:46 PM
    • 280 Posts
    • 11 Thanks
    xlnc99
    • #3
    • 15th Aug 19, 1:46 PM
    • #3
    • 15th Aug 19, 1:46 PM
    Yes i took what experian said with a pinch of salt. They actually said it was 6 months for them in terms of effecting your credit score (which i no is meaningless)

    However, i appreciate every lender is different but there must be an average somewhere. Is 2 years sufficient enough for most lenders, or even 1 year
    • Willing2Learn
    • By Willing2Learn 15th Aug 19, 1:53 PM
    • 3,798 Posts
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    Willing2Learn
    • #4
    • 15th Aug 19, 1:53 PM
    • #4
    • 15th Aug 19, 1:53 PM
    It literally will depend on the lender and the specific product. For some products, at their best (lowest) APR, a creditor would expect a flawless six year credit history. Whereas for other products, the lenders target market might be for applicants who have a six year credit history containing negative markers.
    I work within the voluntary sector, supporting vulnerable people to rebuild their lives.

    I love my job

    • xlnc99
    • By xlnc99 15th Aug 19, 1:55 PM
    • 280 Posts
    • 11 Thanks
    xlnc99
    • #5
    • 15th Aug 19, 1:55 PM
    • #5
    • 15th Aug 19, 1:55 PM
    Which leads me to my next question. Is 6 years that only years at that matter.....

    For example, if i had a late payment for an old account open 7 years ago in the first year but a flawless 6 years after - what will the lender see.

    I was told only 6 years of data. Will the include the late payment from 7 year ago or only focus on the flalwess 6 years
    • Gary_Dexter
    • By Gary_Dexter 15th Aug 19, 2:09 PM
    • 5,718 Posts
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    Gary_Dexter
    • #6
    • 15th Aug 19, 2:09 PM
    • #6
    • 15th Aug 19, 2:09 PM
    It depends on the lender and their commercially sensitive lending criteria as to what they look for an take into account.
    • boo_star
    • By boo_star 15th Aug 19, 3:27 PM
    • 2,216 Posts
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    boo_star
    • #7
    • 15th Aug 19, 3:27 PM
    • #7
    • 15th Aug 19, 3:27 PM
    Which leads me to my next question. Is 6 years that only years at that matter.....

    For example, if i had a late payment for an old account open 7 years ago in the first year but a flawless 6 years after - what will the lender see.

    I was told only 6 years of data. Will the include the late payment from 7 year ago or only focus on the flalwess 6 years
    Originally posted by xlnc99
    If the lender keeps account history for more than 6 years then they could use data that's > 6 years old in their decision.
    • xlnc99
    • By xlnc99 15th Aug 19, 3:34 PM
    • 280 Posts
    • 11 Thanks
    xlnc99
    • #8
    • 15th Aug 19, 3:34 PM
    • #8
    • 15th Aug 19, 3:34 PM
    im referring to the CRA and what lenders look on based on the information with the CRA
    • boo_star
    • By boo_star 15th Aug 19, 3:35 PM
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    boo_star
    • #9
    • 15th Aug 19, 3:35 PM
    • #9
    • 15th Aug 19, 3:35 PM
    im referring to the CRA and what lenders look on based on the information with the CRA
    Originally posted by xlnc99
    CRAs only keep information for 6 years so obviously anyone relying solely on this can only go back 6 years max.
    • xlnc99
    • By xlnc99 15th Aug 19, 4:01 PM
    • 280 Posts
    • 11 Thanks
    xlnc99
    that is with closed accounts. With open accounts they keep them longer then 6 years i believe? Or is that not true?

    I.e if i have an account that is 8 years old, does it only show the data for the previous 6 years and not the first two years?
    • boo_star
    • By boo_star 15th Aug 19, 4:03 PM
    • 2,216 Posts
    • 1,541 Thanks
    boo_star
    that is with closed accounts. With open accounts they keep them longer then 6 years i believe? Or is that not true?

    I.e if i have an account that is 8 years old, does it only show the data for the previous 6 years and not the first two years?
    Originally posted by xlnc99
    They only report the last 6 years.
    • xlnc99
    • By xlnc99 15th Aug 19, 4:08 PM
    • 280 Posts
    • 11 Thanks
    xlnc99
    That gives me some comfort in knowing all negative data will wiped off for old data
    • PRAISETHESUN
    • By PRAISETHESUN 16th Aug 19, 3:09 PM
    • 1,137 Posts
    • 623 Thanks
    PRAISETHESUN
    Information is held on your credit files for 6 years before it is no longer visible to lenders. If you are applying to a lender which you have used before however, they may already have information about you on file, which they can also use in their decision in addition to that provided by the CRA (which may be older than 6 years). In general the older the marker the less impact it will have, and additionally if it was a one-off vs a long period then that will also affect the impact.
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