The 400s: Damage Control

The 400s usually mean recent delinquencies plus older negatives still reporting. The file has both wounds and scars. The work here is stopping the bleeding first, then rebuilding muscle.

Why it matters

At this band the biggest gains come from eliminating what is actively hurting: current late accounts and maxed-out cards. These are the two most responsive levers in the whole scoring formula.

Key facts

• Bringing a currently late account current stops new damage and starts a healing clock.
• Utilization has no memory in FICO: pay a maxed card down and the score responds as soon as the new balance reports.
• Collections under newer models (FICO 9 and later, VantageScore 3.0 and 4.0) count less once paid.
• Most negative marks fall off after seven years from the original delinquency.
• Score recovery is not linear: the first 50 points are easier than the next 50.

In practice

1. Call every currently delinquent creditor and get current or on a plan; get terms in writing.
2. Pay down the card with the highest utilization first, not the highest rate.
3. Keep one or two clean reporting accounts active; the score needs fresh positive data.
4. Dispute any negative that is factually wrong - wrong dates, wrong balances, not yours.