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Message
How Long Will My Credit Suffer?? - Update pg 2 - Score Lowered Again!!!
Posted on 6/3/13 at 12:33 pm
Posted on 6/3/13 at 12:33 pm
Long story short, last January I charged $100 to a credit card I never use. I totally forgot about it and never bothered to look at my mail from the bank as I thought it was just statements. I did not notice is until July so it was reported as a 6+ mo. late payment. Bank says they called me but had the wrong number. Anyway, I wrote letter after letter to them to no avail. Anyway, I obviously paid it immediately and have watched my perfect credit score nose dive to 680 (last check was in March.) Now I'm in the position of looking at getting a new home and don't konw when I will qualify for the best rates or when my score will be back to normal. This is the most frustrating thing I've ever done 
This post was edited on 6/9/13 at 7:08 am
4
Posted on 6/3/13 at 12:34 pm to LETSGEAUX2
That stinks man. Probably a year or two.
Posted on 6/3/13 at 12:50 pm to LETSGEAUX2
Are you the guy that was trying to contact executives?
Posted on 6/3/13 at 12:54 pm to LSUTigers00884
quote:
Are you the guy that was trying to contact executives?
Yep, no luck there
Posted on 6/3/13 at 12:58 pm to LETSGEAUX2
Take out 2 loans simultaneously of like 500-1000$ (Each). Calculate the interest and put the loan and the cumulative interest into a new and separate checking account. Set to auto draft. 12 months later. Check again. It will look like 2 loans at the same time being paid off. Thank me later.
This post was edited on 6/3/13 at 12:59 pm
Posted on 6/3/13 at 1:02 pm to LSUTigers00884
What kind of loan? I am paying my house and 2 vehicles right now as well. Should have 1 paid off by the end of the year so hopefully that will help.
Posted on 6/3/13 at 1:15 pm to LETSGEAUX2
Have you say down and talked to a lender/mortgage broker? You might be surprised at what rates you can get today
Posted on 6/3/13 at 1:17 pm to ZereauxSum
No we haven't. My wife should have a great score and makes more money. As a last resort, any chance she can get the mortgage on her own? Problem with her is she has about $90,000 in student loans we are paying off under her name. I'm assuming they look at student loan debt as any other kind of debt?
Posted on 6/3/13 at 1:25 pm to LETSGEAUX2
Yup they will look at her student loans, but that should only affect the amount you (she) gets approved for and not the rate. Of course, the drawback here is that they will also only consider her income.
There are a couple of lenders on this board that can give you better info, but you actually might be fine applying together.
There are a couple of lenders on this board that can give you better info, but you actually might be fine applying together.
Posted on 6/3/13 at 1:34 pm to LETSGEAUX2
6 mo late.. Did they just report it as late or charge it off? How long ago did you pay it off?
Posted on 6/3/13 at 1:51 pm to LETSGEAUX2
84 months
Posted on 6/3/13 at 1:54 pm to Catman88
quote:
Did they just report it as late or charge it off?
Not sure what the difference is
quote:
How long ago did you pay it off?
Probably end of last June/beg of July
quote:
84 months
What I was afraid of
Posted on 6/3/13 at 2:09 pm to LETSGEAUX2
quote:
84 months
quote:
What I was afraid of
It will possibly show up on your credit report for that long from the "date of first delinquency." The effect it has on your score will diminish over time. Keep any other revolving credit to a minimum. Most lenders will approve you with a year of clean credit history from your last mess up. 680 isn't horrible and will still probably get you a good rate with a conventional loan. Remember though, that they use the middle score of the 3 credit bureaus. 680 may be your low score or could be your high score. Go talk to a bank or broker. I think you will be fine to apply now if that's all you've got on your credit.
Posted on 6/3/13 at 2:15 pm to LETSGEAUX2
A Charge off is much worse than 1 DLQ. Both will stay on your credit for 7 years. However as you get further and further away from the date of last activity (the day you paid it off) the further up your score will move. Expect your first bump from time at the 1 year mark. Anything inside 2 years will still hurt considerably. But under 1 year is a big hit. If its charged off then thats a hit to the DQL score as well as a hit to derog portion.
It would be odd to not charge off unpaid debt that is 6 months old. But the amount is low so hard to tell.
It would be odd to not charge off unpaid debt that is 6 months old. But the amount is low so hard to tell.
This post was edited on 6/3/13 at 2:19 pm
Posted on 6/3/13 at 2:16 pm to JonTheTigerFan
quote:
"date of first delinquency."
Since he made a payment to it then the score will use the date of the payment. Thats why in some cases it better to leave some debt unpaid. This is especially true for debt outside the SOL in your state.
Posted on 6/3/13 at 2:24 pm to JonTheTigerFan
quote:
680 isn't horrible and will still probably get you a good rate with a conventional loan.
This.
It's really not bad at all, not stellar but it's actually about average in much of the country.
Posted on 6/3/13 at 3:25 pm to Catman88
quote:
Since he made a payment to it then the score will use the date of the payment. Thats why in some cases it better to leave some debt unpaid. This is especially true for debt outside the SOL in your state.
This could be true but I always thought that the date of first delinquency set the amount of time it stayed on your credit report. I know that making a payment on a charged off account would reset the SOL for them to collect but I thought the DOFD always stayed the same?
ETA: This is from the Fair Credit Reporting Act but I think it really depends on whether they charged the account off or not.
quote:
To learn when an account will be removed by the CRA, add 7 years to the date of first delinquency. Subsequent activity, such as resolving the debt, is irrelevant to the 7-year rule
This post was edited on 6/3/13 at 3:53 pm
Posted on 6/3/13 at 5:05 pm to LSUTigers00884
quote:
Take out 2 loans simultaneously of like 500-1000$ (Each). Calculate the interest and put the loan and the cumulative interest into a new and separate checking account. Set to auto draft. 12 months later. Check again. It will look like 2 loans at the same time being paid off. Thank me later
Can you give some more detail on this process? You sound familiar with credit repair and I could use any advice you can offer, as I am in a similar situation as the OP, i.e. no debt, but a few lingering late payment blemishes in the last 2 years.
Posted on 6/3/13 at 5:24 pm to GoIrish02
quote:
Can you give some more detail on this process? You sound familiar with credit repair and I could use any advice you can offer, as I am in a similar situation as the OP, i.e. no debt, but a few lingering late payment blemishes in the last 2 years.
Look on the MyFico credit rebuilding forum. Get your revolving debt down to les than 10% of your limits. Look into a "Credit Builder Loan" with a credit union. You take out a loan but don't touch the money until you pay it off. The money you pay toward the loan goes into a savings account with the CU and you have that amount in the account in the end, plus you build a positive credit history.
Posted on 6/3/13 at 8:58 pm to GoIrish02
quote:
Can you give some more detail on this process? You sound familiar with credit repair and I could use any advice you can offer, as I am in a similar situation as the OP, i.e. no debt, but a few lingering late payment blemishes in the last 2 years.
Paid off loans, even if small, will help boost your credit score quickly. I would do some savings secured loans for whatever the loan minimum is (usually a five hundred dollars or so) and set up auto draft payments to ensure they are paid on time. You'll only lose a few dollars in interest paid because rates on savings secured loans are usually the best the institution will offer. Once they are paid, do it all over again.
I've always heard that you want to have the debt for at least 6 months before paying it off so it reflects fully on your credit reports.
You'll obviously need to be patient, but once you go through a few cycles of paying off some loans, your credit should improve a bit. When I worked in banking years ago, I had a customer with terrible credit do this and was able to boost her credit high enough to get approved for a mortgage in under two years.
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