@Polkadots79 wrote:Score Watch
670 06/2013
565 3/28/14 (548 Exp 592 TU)
572 5/5/14 (?? Exp ?? 592 TU)
The balance on a Chase credit card ($3000 limit) and on AMEX Green Card (Charge) increased. I had a small $300 HSBC credit card that was sold to Capital One. In the process, I was still paying it through my Bill Pay to the HSBC address...didn't realize 'til too late that payments were being reported late. I ended up with a 90 day late 02/2014. I'm thinking these 3 accounts caused the significant drop in my score.
My roommate got married and moved out, so my living expenses doubled and I had a surgery earlier this year that got me off track. I'm wanting to purchase a home (first-time home owner) instead of wasting so much on rent and was quite disappointed to see how low my score had dropped from last summer.
I have approximately $5,000 of revolving credit debt & $8,000 of student loans (Applied for Teacher Loan forgiveness of $5,000 so amount should decrease soon). My salary is $42,000 with no other debt. I'm financially able to afford a mortgage at this point in my life.
During my college days, I made allot of foolish mistakes with my credit. Here's a brief overview of the negative indicators on my current report:
- Capital One (HSBC): 2 30 Days (12/13 & 9/13), 1 60 (1/14) & 1 90 (2/14) -- I've called and was told only the credit bureau can delete from my report. The credit burear directs me back to Capital One. - Paid $200 on account 05/01/2014. Will pay off $130 balance & close 05/31/2014
- $195 Medical Collection - Paid off and received Zero Balance Letter on 05/02/2014
- BBT Credit Card: Paid & Closed; Reporting 2 late payments (120+ 9/2007, 90 08/2007) -- Drop off this September? Yes they drop at their individual 7 year mark
- GECRB/JCP - Paid & Closed...was reporting late payments, but I think have dropped off since pulling my credit the end of March, so no longer negative.
- SLC Student Loan: Transfer/Sold; Reporting several late payments with last 90 day 09/2008
- SLC Student Loan: Transfer/Sold; Reporting several late payments with last 30 day 03/2009 (a 60 & 30 day will drop off in September of 2014)
I'm hoping to pay down the current past due of $1200 on the AMEX card by the end of June 2014.
My questions are:
Is it likely that my score will be at least 640 by the end of July with the medical collection paid, Capital One account closed, and the AMEX past due amount paid? No, paying CAs doesnt improve score (unless PFD) its likely to drop it if it hasnt been reporting every month when the status date comes current to report the PIF. Closing accounts isnt going to help you either, you will be losing available credit to help with utilization. Paying the past due amount will stop it from continuing to report as past due but it wont erase the fact that it happened. Your past due AMEX Charge card balance is also hitting you hard in the utilization category as there isnt supposed to be a revolving balance on it..
Will the late payments dropping off in September 2014 from 7 years ago boost my score significantly? No, there is little impact once they run the full 7 year term, its your current 30,60 90 day late that is killing you along with the past due AMEX charge card.
Should I try and dispute the HSBC/Capital One account with the recent 90 days using the Equifax online dispute center? No, you need to write GW letters to Cap-1 asking for forgiveness and explain why it happened, only Cap-1 can change the reporting to the CRAs. If you close it they most likely will not be willing to work with you as you are no longer a customer so I would reconsider closing it out if you are trying to get goodwill from them.
Yes you can certainly write GW letters asking that the old lates be removed early, you can also call and ask the credit bureau to remove them early, some have success with this 90 days out, GW letters till then... Yes you want to direct all available funds to the AMEX to cure its delinquency and make the minimums on the others until its taken out. It is unfortunate but your lender obviously knows nothing about how FICO scoring works, this is more common than not. I would be starting GW letters to the medical CA asking for its removal as well.