Monday, July 17, 2006

Delinquencies in last 7 years in credit summary, actually means 90 day delinqs in last 7 years

Registered lenders viewing listings' extended credit summaries, will see lines like:
Now delinquent: 1
Delinquencies in last 7y: 1
Public records in last 10y: 0

Keep in mind, however, that while the now delinquent may actually refer to a bad debt from 6 years ago, the delinquencies in last 7y may skew in the opposite direction:

fine print here...

Many newer lenders may fail to realize that this field only picks up on 90 day lates -- so if the prospective borrower were 60 days late 50 times over the last 7 years, this field will still read 0.


At 12:39 AM, Anonymous Anonymous said...

The borrower could also have write offs that do not show up even if they were delinquent.

At 9:36 AM, Blogger cellardoor said...

interesting -- are you certain that chargeoffs don't still appear as now delinq? there seems to be a fair amount of anecdotal evidence that this is the case...

At 9:51 PM, Anonymous Anonymous said...

If a person was constantly 50 days late on a payment, doesn't that actually help a lender on prosper b/c that person would in-turn receive a late fee on top of everything else. At least the borrower is paying of the loan.

At 2:49 PM, Anonymous Anonymous said...

Seems to me like Now Deliquent is the stat to focus on. If they were late and got caught up (7yr) that is better than if they are still currently late even on an old account.

At 9:42 AM, Anonymous Anonymous said...

Interesting post - Though I guess at least those people *did* end up paying instead of letting their loans totally default.

Still something you'd want to be aware of - Though people who are consistently late probably are not that big on protecting their credit scores anyway.


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