My Fico 8's were hit hard recently by a late CC payment in October 2016 (see starting scores in signature below). Before hitting high 500's and low 600's, my scores were in the 680's in September (before the late) due to 90% utilization and a few (maybe 5?) older misc. lates on the 3 cards I had. I was able to get an amazing rep to agree to delete the October 2016 late and take mercy on my situation from last month. I also paid down my utilization across (3) cards (2 active - 1 closed) from $2386 to $500 out of a total $2790 CL. I know by paying off the closed card, that $500 credit limit is removed from my utilization calculation. So I should have one card report $0 this month ($0/1000) and one card report $500 this month ($500/1290) for a total of $500/2290. Only 1 card will report a balance whereas both were before. My score was in the upper 600's (688 in September) with that high utilization until the late hit me. With all things considered:
- 30 Day Late Removed from Last Month
- Balance from ~$900 paid to zero on Cap One card (also went active and started using it again after nearly a year)
- Balance from ~$1175 paid to $500 on Citi card (also went active and started using it again after nearly a year)
- Balance from $217 paid to zero on Cap One card (this card was closed, so it will also likely hit my total CLI since it will be removed from calc.)
No other baddies in terms of collections or charge offs. Most recent late reported was 30 days and 11 months ago at this point. There was a 90-day late but that's 22 months old (on the card I paid to zero that was closed - I am going to try and GW this, but that's a separate discussion - let's assume it stays). I have a mortgage, paid on time since 08, various car loans paid on time for years and years. AAoA is like 7-8 years. Do you think my score will pop above 700? If it was ~680's, the late is removed and utilization is paid down from like 90% to ~20-25%?
I also plan to pay down utilization to ~5%, but keeping that separate as well.
I think your question boils down to this:
If I have a score in the 680s with 90% CC util,
will it cross 700 if I pay my util down 21-25%?
The answer to that question is yes,
The information about your accidental late payment (and subsequent score loss) won't matter, since that late is being removed.
Glad you are working on your remaining derogs. The 90-day late is an important one to focus on. It is having a substantial score impact. No reason not to see if you can work on the other derog too (a 30-day late from 11 months ago) but if you have to prioritize your effort it should be on the 90-day late. If all you end up with is a single 30-day late that becomes older than one year, you will be in good shape (FICO will place you in a "clean" scorecard and the late will increasingly have little impact over time).
Encourage you to keep going with paying off all your CC debt. You want to aim for paying off all CC debt and then paying all your cards in full after that. The subsequent goal should be placing cash in a savings account so that you have money for emergencies and then after that saving a big chunk of you paycheck every month toward other stuff. These last goals aren't strictly credit score related, but they make a ton of financial sense -- and they do have a scoring impact since people with lots of money saved almost never need to run up their cards.