One month late on Khol's account

[Anonymous]

I was one month late on Khols card on Jan 2007. Actually the bill went to old address and I never knew that I have to pay to Khol. After one month late I got a call from collection agency , then I paid it (it was  just $10.50 - on and only balance on Kohl's card). That brought down  my credit score so many points. How can I remove it from history. Whom should I call? Is it possible to remove it from history.

Thanks

[RobertEG]

As I read your post, you paid after 30-days from your billing date, but apparently within 60-days of the billing date.

Yes, that is technically a late, but would not even be reportable by the OC as a 30-day late.  That only occurs 30-days after the due date, or 60-days after the billing date.

I have never heard of an OC putting an account out for collection that has not even reached 30-days past due date.  It is technically possible, but is very shabby on their part.

How did you pay it?  Did the OC accept the payment, or did you pay the CA?  Is the OC account still open?  Was the CA ever reported to your CR?  If not, it would not have an effect on your credit score.

[llecs]

Send a GW.

[Anonymous]

I'm with Robert. Did you pay CA or Kohl's and how quickly did you do that?

This sounds awfully shady on thier part. Especially for $10.50. It probably cost them more to send it to CA.

I'm in the process of sending GWs to them for ONE 30 day late. They aren't quick to forgive. I feel your pain.

[Anonymous]

Here are some more details. I do not remmber whether I received letter form CA, but I remember talking to them. Largets Past balance is wrong ($1000) I think it is the credit limit

Status as of  Date opened  Date of last activity  Date closed  Account number [?] Loan type [?] Largest past balance [?] Terms [?] Account Type [?] Account holder [?] Scheduled payment amount [?]

Jul, 2009

Nov, 2006

Feb, 2007

Not Reported

Not Reported

Not Reported

$1,000

Not Reported

Revolving

Individual

$0

Descriptions [?]

• Account closed at consumer's request
• Closed or paid account / zero balance

Balance [?] Current Status [?] Past Due Amount [?]

$0	Pays account as agreed	Not Reported

Seven year payment history [?]

30 days late 60 days late 90+ days late

1 time (Jan 2007)

0 times

0 times

Worst Delinquency [?]

30 days past due

The Worst Delinquency reports the worst missed payment status that has been documented on this account. Your FICO® score evaluates how recently that missed payment occurred and in general, the more recent, the more impact it has on your score. However, the fact that it occurred is still predictive of future payment risk and could be considered by your FICO® score.

[Anonymous]

I just pulled my report from myfico. it shows negative indicator for Kohl

Kohl/Chase

Not Reported

11/2006

$0

Pays account as agreed

But I got the following alert on Feb 26, 2010

February 26, 2010

Alert:

An account listed on your credit report has been updated

Score Watch alert/Changes to your FICO® Score

Your FICO® score is 707 and has not changed since February 19, 2010.

Changes to your credit report

1 of your accounts reported changes

KOHLS/CHASE  (XXXXXXX7752) Show/Hide Details Account opened: 11/2006 Description: Account closed at consumer s request Closed or Paid Account/Zero Balance Credit card   Previously reported Newly reported Balance: $0 $0 Past due: $0 $0 Status: Pays account as agreed Pays account as agreed Last activity: 2/1/2007 2/1/2007 Description: Account closed at consumer s request Closed or Paid Account/Zero Balance Amount in H/C column is credit limit Account closed at consumer s request Closed or Paid Account/Zero Balance Credit card Contact: KOHLS/CHASE, N56W17000 Ridgewood Dr, Menomonee Falls, WI, 530515660   •   (262) 703-7000

How account changes impact your score: The following are reasons why a change to an account can cause your FICO® score to go up. (A change to an account in the opposite direction can cause your score to go down.) The status of the account improved. For example, the status went from "60 days past due" to "currently paid as agreed". An improvement in account status demonstrates an ability to pay debts. The balance on the account decreased. Generally, less debt is better for your FICO® score. The amount past due on the account decreased. This demonstrates your ability to meet your financial obligations. The credit limit on the account was raised while the balance stayed the same. Since carrying a balance too close to the credit limit is a sign of a consumer who needs credit and cannot pay it back, a higher credit limit actually helps your FICO® score. The history of late payments or description for this account is revised to be less derogatory. For example, if a late payment on your account was mistakenly reported, correcting this on your credit report may help your score.

[llecs]

A GW to Chase would work, though I wouldn't send it. Ignore the CA. They are forever out of the picture if they aren't reporting. It should be noted before doing anything that the 30 day late from 2007 has very little impact, if at all, on your FICO score. There is a risk, because Chase is closed, that the OC may opt to delete the entire TL instead of removing the late. That can hurt your FICO score if the age of the Chase TL helped your overall history and/or your AAoA.

The annoying red flag is there because of the 30 day.

Ignore the $1000 CL or high balance. It has zero impact on your score since the TL is closed w/ a $0 balance.

[haulingthescoreup]

I may need some more caffeine, but I'm not seeing anything there that indicates that a CA was involved. This looks to me like a simple 30-day late, and I'm guessing that their in-house collections unit was who contacted you and arranged payment.

Balance [?] Current Status [?] Past Due Amount [?]

$0

Pays account as agreed

Not Reported

Seven year payment history [?]

30 days late60 days late90+ days late

1 time (Jan 2007)

0 times

0 times

Worst Delinquency [?]

30 days past due

The Worst Delinquency reports the worst missed payment status that has been documented on this account. Your FICO® score evaluates how recently that missed payment occurred and in general, the more recent, the more impact it has on your score. However, the fact that it occurred is still predictive of future payment risk and could be considered by your FICO® score.

If you don't have anything listed under the "collections" tabs on your report, and you haven't had any other negatives of any kind since this happened in Jan '07, it shouldn't be hurting you much. 30-day lates older than 2 years don't carry that much of a ding.

If a future lender questions you about this, just explain that you moved, the bill wasn't forwarded to you, you missed the payment, and you paid as soon as you were contacted.