Credit Ding Removed... How Many Points Should I Get Back?

[Anonymous]

I've always had a pretty good credits score (760+)... but recently had a 30 day deliquent payment on a credit card (for $16...).  I'm a long time card holder with Amex so I called and they agreed to remove the ding as of next statement.

My credit score is currenly 720 (before removal) and I'm getting ready to apply for home mortgages and am wondering what I can expect on my next Fico report.  Also, I paid off an $8,000 auto lone recenrly, so I'm assuming that will help the score as well.

I know it's impossible to predict exactly what will happen with my score, but wondering if anyone has been in a similar situation and can share their experience.

Thanks!

[simplynoir]

Assuming that is the only negative that you're getting removed your scores should bounce back to what they were before the late reported.

[Anonymous]

Also if the auto loan is your only installment loan, expect a ding for losing open installment loan from your credit mix.

[Anonymous]

If your score dropped from 760 to 720 with the introduction of the 30-day late, you can expect its removal to bring you back those 40 lost points.

As for your auto loan being paid off, do you have any other open installment loans?  If so, your score will either remain the same or possibly increase slightly, depending on aggregate installment loan utilization both before/after the loan is closed.  If it is your only open installment loan that you're closing, you could stand to see a 20-30 point drop in your scores due to the absence of an open installment loan once it reports closed.

[Thomas_Thumb]

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@Anonymouswrote:

I've always had a pretty good credits score (760+)... but recently had a 30 day deliquent payment on a credit card (for $16...).  I'm a long time card holder with Amex so I called and they agreed to remove the ding as of next statement.

My credit score is currenly 720 (before removal) and I'm getting ready to apply for home mortgages and am wondering what I can expect on my next Fico report.  Also, I paid off an $8,000 auto lone recenrly, so I'm assuming that will help the score as well.

I know it's impossible to predict exactly what will happen with my score, but wondering if anyone has been in a similar situation and can share their experience.

Thanks!

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Generally, a loan payoff does not help score unless you have another open loan on file with a low B/L ratio (and the paid off Auto loan had a higher B/L prior to closure).

If the auto loan is the only one open and it is paid and closed, expect a score drop as others have mentioned above. Assuming the $8k represents a B/L of 20% to 30%, score drop might be 20 to 30 points when paid and closed.

Whatever score penalty you realized due to the 30 day late will be removed when the late is deleted. You may need to check all your CRA reports to verify each one removes the late as sometimes a CRA may not respond with prompt removal.