I have a car loan that is paid in full now and it shows paid on my credit report. My concern though is two years prior to that I was 90 days late at one point. So on my credit report, it now shows account paid in full but it still is reporting 90 days late from two years ago. How bad is that affecting my credit score? As something ages on your credit report does the affect it has on your score lessen?
To really find out where you stand, you should check your credit score(s). All negatives decrease in effect with time. A 90 day late is considered a serious negative, but after two years the effect will have diminshed.
From my experience, a 90-late still hits for around -15-20 FICO points even at two years. It is serious, and has a big impact. The deterioration with age on its effect is slow. It will go to zero after 7 years from the baddie report date.
