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New $5k credit line or delete account with 60 day late payment?

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Anonymous
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New $5k credit line or delete account with 60 day late payment?

Hi there community, thank you all for the great advice on all threads, this is the best training in Credit one can ever have!
I have a credit line of $5k that is actually showing as closed, it has been paid on time for a year, then my credit report showed a 30 and 60 day late as the company was sold and during the transition (months) we were not able to make any payments even if I tried, so my $29 balance payment felt through the cracks and now i toke a 37 Points hit on all 3 credit scores.
I tried to do a pay to delete but they denied. I still payed the full balance and now is showing a cero balance but still with late payment. They offered to keep the account open for the $5k credit line (currently showing as closed by consumer). I told them I don’t want to run my credit again as I’m trying to buy a house in the next 6 months so they offered to re-do de file, as they can’t find my account on the system anymore, by taking the info from my initial application... well, today I got a call and they offered me two choices to re-open the account; (a) re-apply and run my credit so I can have full use of the credit line and place orders or (b) have the account report with cero balance with $5k credit line but can’t use the credit to buy anything because (this is the good part!!), apparently they can’t re-build my file because they lost my initial credit application, so there is no record of when I applied!
My question is, what is more beneficial, adding a new $5k credit line (without running my credit)? Or have the account removed? If so, do I get back the whole 37 points I lost when they reported my 60 day late?
(Credit scores 570’s to 610’s)

Thank you for any advice!
1 REPLY 1
Anonymous
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Re: New $5k credit line or delete account with 60 day late payment?

Getting rid of a 60-day late is the most important thing you can do, even if it means a hard inquiry.  A 60D late payment can hurt for as much as 100 points but after many years it hurts for as little as 25 points.

 

fico8 lates versus time.png

 

This chart isn't 100% fact, it's just averages based on many data points I've collected over the past 9 months asking hundreds of people for their score changes.

 

What is the MOST RECENT date of the 60D or 30D late payment?  I'd estimate it was around 14-15 months ago?

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