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I missed the payment accidentally (I missed the Oct. 09 payment due date, and then made the Nov. 09 payment in full, but late by 2 days). BofA just indicated that they will report the missed payment to the credit bureaus (yes, I begged them not too)!
I seriously have been scouring the internet for my options. So I am turning to you all.
1. What can I do under the circumstances? (dispute? goodwill letter?)
2. How much will my score drop? (more info: I use 2 credit cards monthly and pay them in full each month, I have no
default, no charge offs, except for the above - no missed payments in 12 years...)
3. What can I hope in terms of bringing my score back up?
Thanks.
You can contact them and request they forgive this one mistake. A goodwill letter is the way to go.
The effect on your score depends on your credit score. If your score is 700+ you might expect a large (30-50 pt) drop. If you are below, maybe 25-40 pts?
If the goodwill letter doesn't help, it will take a while for the effect of this ding to diminish. Your score is going to take a large hit and recover over a 2 year period for the most part.
What are the specific dates? What is the billing date and due date of the first payment missed, and when did you make payment?
Lates per se are not reported to a CRA, only lates that remain late for 30-days past the due date.
I missed the first payment on Oct 14 or something like that. The next payment was due Tuesday November 17th, but I made the payment (in full) the 19th.
Does that help your analysis?
Yes, it clarifies.
The payment due Oct. 14th reached 30-days overdue as of Nov. 15th,. so is reportable as a 30-day late to the CRA as of that date because it was not paid within 30-days of the due date.
Being two days late on the November payment is a late, but not over 30-days, and thus is not a 60-day late.
So they can report one 30-day late to the CRA.
I would have broader concerns. Creditors are slashing credit limits and even closing accounts whenever they see potential risk.
Two consecutive monthly lates wiill most probably already have driven your interest rates to whatever default rate they can use.
They may slash your CL, and thus further impact your credit score by increasing your overall % util.
The 30-day late, if reported, will initially hit your score for around 20 points, but will gradually reduce.
You need to send them a GW letter to remove the 30-day late.
Dont send them a "my dawg just died, my wife just left me, I lost my job, the roof is a'leakin" etc., letter for that is just telling them to be more wary of your future credit status.
Rather, emphasize your long and sound credit history with them, and your benefit to them. Tell them just what you posted on here... no delinquencies on any accounts for more than a decade. That is very impressive in showing that the lates were just an oversight, and not an indication of future risk. I would hit hard on that. Make them want to grant goodwill deletion because they can rely on money from you in the future.