Accounts closed due to late payments

[Minnie]

I'm new posting here, but have gotten lots of good information and advice from other postings. Thanks! I have pretty low scores (575-ish) that are down from 650-ish in early summer 2007. I had a personal situation (broke up with fiance -- lost help with half of rent and household expenses in process), so I struggled to pay bills all summer. At this point, I am recovering and have gotten all lates up-to-date, but have discovered that two of my credit cards have been closed because of 2 or 3 lates during this period (Banana Republic and Macys). Anything that can be done here?? I don't wish to utilize the credit lines, but, as I learned from these forums, "closed by grantor" with a remaining balance is bad. Thanks for input.

[My_dog_FICO]

Minnie, Welcome to the myFICO family. We're here for the long term and won't treat you wrong, unlike an ex.

The first thing you need to do is create a budget so you can ensure that you will not have any more late payments.

Second, contact these two closed accounts and see if they can be reopened if the balances are paid down to $0. If so, focus on doing that while making the necessary payments on your other cards. If they won't, then pay what you can for a few months and then start sending GW letters asking if they will remove the lates from your account since you are working on paying the balance off. It's better to have a Closed/Paid as Agreed than a Closed/30-60 days late. Keep sending them GWs or even calling them until they agree. Many can be stubborn but eventually you'll get someone who sympathizes.

On a good note, your 30 day lates hurt alot in the beginning, but after 12 months it diminishes, and then again after 2 years doesn't hurt much at all.

[Minnie]

Thank for suggestions and encouragement. I think they actually say "paid as agreed" at this point, but, of course, the late payment notations remain. How long should I wait before sending GWs in an attempt to get them removed? Do you think it will actually work? I have other lates for private student loans during the same time period. Do you think GWs will work? I've learned from this board that student loans can be especially tough...

[My_dog_FICO]

GWs do work. I just got a collection completely deleted from DH. Explained lates and CO were due to long term disability due to kidney failure/dialysis/transplant. They showed compassion and said they would delete, since it was paid in full.

Be honest, and ask politely and sincerely that they show compassion. You promise to do better, and have already shown that by catching up your payments rather than letting it go to collections.

They should like getting their money directly rather than having to use those blood sucking oxygen relay devices (CAs).

[SmartCookie]

Before you pay and hope for GW or send a PFD...

Call both Banana and Macy's and ask them what the procedure would be to get the accounts re-opened.  They might not be able to, but that would be a good thing.  Don't discuss payment arrangements, tell them you are just getting information and will call back.

[Minnie]

I actually called BR. The person I spoke to said I would have to re-apply once the account was paid in order to have it re-opened. I could try sending a letter....It is truly frustrating, as I have many other accounts that have no lates, ever. So it goes....I will not get discouraged!