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Posts: 1
Registered: ‎08-18-2016
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Drastic Credit Score Drop?????

We recently switched banks and when we redid our automatic payment for GM financial with the new banks info an error was made.  We ended up being 30 days late and now my credit has dropped 70 points the day it hit the credit reporting agencies.  Seems extreme for one missted payment and no collections.  Then a couple of days later Equifax went down another 42 points.  Can someone please tell me if this is normal.

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Posts: 15,055
Registered: ‎10-07-2014

Re: Drastic Credit Score Drop?????


gulfvet1234 wrote:

We recently switched banks and when we redid our automatic payment for GM financial with the new banks info an error was made.  We ended up being 30 days late and now my credit has dropped 70 points the day it hit the credit reporting agencies.  Seems extreme for one missted payment and no collections.  Then a couple of days later Equifax went down another 42 points.  Can someone please tell me if this is normal.


Welcome to MyFICO

 

Not sure exactly what scores that you are looking at, FICO or some other scoring system like Vantage 3.0 from CreditKarma, but yes a single late payment can cause that much of a score drop.  Payment history is the single biggest factor in FICO scoring and a recent late will have a sizable impact.  While the late payment will stay on your credit reports for up to 7 years, over time the damage to your scores will diminish.  You might want to visit our Rebuilding Your Credit forum and ask if anyone has had success with a Goodwill Letter removal of a late payment with GM.  Good luck.

Senior Contributor
Posts: 6,748
Registered: ‎04-11-2016

Re: Drastic Credit Score Drop?????

Good advice above on considering GW to get that late payment removed. If you have otherwise perfect payment history, getting a GW adjustment for the least severe (30 day) type of late payment is very doable in most cases.
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Registered: ‎05-25-2015
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Re: Drastic Credit Score Drop?????


BrutalBodyShots wrote:
Good advice above on considering GW to get that late payment removed. If you have otherwise perfect payment history, getting a GW adjustment for the least severe (30 day) type of late payment is very doable in most cases.

+1


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