After reviewing an account, I discovered by my own ignorance, that a closed CC acount with BoA has a string of 30 day lates that stretches throughout 2007. In Jan 2006 I set up an automated draft payment through BoA so to better my credit situation, AND AVOID LATES. (was in low 500's). Well, I was notified by phone(March 07) by them that my account was past due. They cancelled my auto draft after 1 year and didn't notify me. I keep a significant enough amount in my checking that I didn't notice the payment was not being taken. (I know it's my fault, but it seems pretty shady for them to do that to rake in additional fees). The rep indicated that if I paid $xxx my acount would be current and they would waive the late fees. I paid the amount but apparently something was not updated correctly or the rep mis led me either intentionaly or unintentionally. My account did not show current until Feb of 08' THE STRING OF LATES IS THAT LONG. I am currently in the process of trying to qualify for FHA.
Here's my rundown:
- Credit. My scores 680 TU, 662 EQ, 672EX (FAKO), wish I had joined soon enough to get my experian FICO). Baddies: other than what's mentioned above I have one charge off from June 02 from chase for $4700 that is due to fall off this year but i can pay if needed And one collection from a hospital bill of $271 from 03 (unpaid, I disputed the carge with the hospital unsuccessfuly).
- My other debts are a car paymet of $310 with $5200 left on the balance, never late since '05. I have the CC with Bank of America from 2002 limit of $2700 with a balance of $2000 current for last 14 months. This is the card with the string of lates!!!!! I plan to pay this off by the end of May, minimum payment of $63. And another CC with Capital One that has a CL of $750 that I use like a debit card. I'll make a purchase with it then pay the balance downt to $0. Never late.
- Income. My income is 57K/year and I get a bonus every year that's 5-20% of the middle salary of my pay grade.
- Source of income. Salary
- Monthly debt payments. $310 auto payment, $120 CC payment
- Employment Full time, 5 years this August
- Assets/Reserves. $17K savings, $3K in checking
- Location. Indiana
- Property. Single family home
- Value. I'm looking in the price range of $140K - $200K depending on what I can qualify for.
- Occupancy. Primary residence
- Transaction Type. This will be my first home purchase
Also I have rented for the past 4.5 years and never been late.
Is there a chance I can explain the lates with a letter? Or do I need to try and get BoA to delete? I can pay the entire balance, but I don't know what I'll need for closing cost.
I'm curious if just not paying enogh attention is going to cause me to be denied?
Any help is appreciated!
Starting Score: EQ 550 TU 551
They typically look for lates in the last 12 months so you're probably okay with Feb 08.
Your scores are fine. 620 minimum mid score, so it won't even matter you don't have your EX score.
Paying old collections can actually re-age them so i wouldn't do that at all unless your lender is good and specifically requires it. Even then, get a second opinion before paying off old collections. Be wary of too many disputes too. That can get you denied.
I'm very bad at figuring out Debt to Income ratios so i'll let someone else help you with dollar amounts. Good luck! 
Thanks Lady, I was worried that they needed 2 years of clean history for FHA, but then again that may vary by lender. I can't believe that I totally overlooked that account, but I guess that's what can happen if you set up an auto draft and forget it. Hopefully someone else will benefit and learn from my mistake.
