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disaster related delay and credit reporting


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it's an NDC code. here's details about how Vantage Score codes it and anecdotal information about how FICO probably scores it.

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The VantageScore 3.0 and 4.0 models are actually different than other credit scoring models because they allow for special treatment of victims of a natural disaster. With other conventional models, consumers’ accounts that are reported with the natural disaster reporting code may not be counted in the calculation of a credit score. As a result, both positive and negative information is potentially invisible to a consumer’s credit score and some consumers’ scores actually may decline because they are not getting credit for the positive information associated with the coded accounts.

With the VantageScore 3.0 and 4.0 models, only payment history information that would negatively impact a consumer’s credit score is “set to neutral” so consumers are not impacted if they are not able to pay their bills during this time.

 

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I cannot find the link back, but I posted something recently which said that the bureaus will show in the payment history "No Data" for months the data furnisher indicated that the consumer's account was impacted by a natural disaster. 

 

By my logic, FICO would have nothing to score for those months, and therefore there would be no effect... but please note that my logic and FICO's may vary.

 

And please don't make a decision based on my vague prose in this post.  

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1 hour ago, theGman said:

ok! so i informed the creditors.

 

now a friend tells me that i should make a payment, however small say $5, to each creditor. he says, it establishes trust etc etc.

 

good idea?

don't waste your money.

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1 hour ago, theGman said:

ok! so i informed the creditors.

 

now a friend tells me that i should make a payment, however small say $5, to each creditor. he says, it establishes trust etc etc.

 

good idea?

If you make a $5 payment it will almost certainly post as $5, not ND.

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Something to keep in mind is that, even with a No Data notation on payment or a reference to disaster, the balance field will very likely continue to increase for each month.  On a manual review, this will let people know you were skipping payments. 

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