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Credit Card Late Payments

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quicksilver185
Valued Member

Credit Card Late Payments

Hi evevryone I am fairly new to myfico.com I am looking for some advice about credit card late payments. I have several credit cards which I had fallen behind on the payments for a few months but since have payed them all up to date. I do still however have a balance on all of the cards. I have several 120 day late pays on three of the cards and the other two have 90 day late. I have two questions the first is it worth sending out goodwill letters to attempt to have the late pays removed from my CR while I am still carrying a balance on the card? The second question would it be more beneficial to my FICO score to pay all the cards off at  one time or continue to make payments over the next year or so to build a good paymeny history?

 

 

P.S. all the Credit card account were closed by issuer.

 

Thanks for help in advance

David


Starting Score: 409 2/1/2011
Current Score: Equifax 559 12/1/2011 TransUnion 569 12/1/2011
Goal Score: 700


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bobebob
Frequent Contributor

Re: Credit Card Late Payments


@quicksilver185 wrote:

Hi evevryone I am fairly new to myfico.com I am looking for some advice about credit card late payments. I have several credit cards which I had fallen behind on the payments for a few months but since have payed them all up to date. I do still however have a balance on all of the cards. I have several 120 day late pays on three of the cards and the other two have 90 day late. I have two questions the first is it worth sending out goodwill letters to attempt to have the late pays removed from my CR while I am still carrying a balance on the card? The second question would it be more beneficial to my FICO score to pay all the cards off at  one time or continue to make payments over the next year or so to build a good paymeny history?

 

 

P.S. all the Credit card account were closed by issuer.

 

Thanks for help in advance

David


1. It's probably worth the attempt to send out the goodwill.  Seeing as the issuer closed the account, you might wait until you've made 6mo or so of steady payments.  It might make them more amenable.  If the goodwill doesn't work you could try PFD.

 

2. I'm not sure which method would produce a better credit score.  I would use the snowball method and start getting rid of the balances starting with the highest interest account.  I'm guessing that they cranked up the interest rate with the late's.  I would be more woried about the extra interest you are probably paying until they are paid off and the accounts are closed.

 

Once they are gone, you could look at getting another CC and start rebuilding (might have to be secured).

bobebob || Nov: My FICO SW EQ(Upgraded Version) = 822 ||Sept: Walmart TU Fico=838Goal = FICO's>800 || In my wallet: CostcoAmEx(20k), DCU Visa Platinum (10k), BoA Visa Signature (17.1k), Walmart Discover (7.5k), AmEx Corporate (5k). All PIF every month.
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