topic Re: 100 Point Drop in FICO Score on $25 late payment in Credit Cards

100 Point Drop in FICO Score on $25 late payment

Anonymous — Wed, 15 Apr 2009 23:56:58 GMT

My FICO score has always been very good (780+). We have a Neiman Marcus credit card (for over two years now) and hardly use it. Recently signed up for paperless statements and of course forgot to pay a $25 balance due in January of this year. I immediately paid the balance once I figured it out, however, this late payment caused a 100 point drop in my FICO score. It has since gone up by 30 points or so, but still well below what I'm used to. Seems ridiculous that a $25 oversight would cause such a drastic drop, however, appears that the negative status may remain on my record for seven years.

Question - Is there any way I can get this off my record and improve my FICO score to historical norms?

Re: 100 Point Drop in FICO Score on $25 late payment

Anonymous — Thu, 16 Apr 2009 00:10:38 GMT

You might try writing a GW letter to Neiman-Marcus explaining what happened and why and ask that they remove the late from you credit reports. Some here have had good luck with these letters.

Re: 100 Point Drop in FICO Score on $25 late payment

clocktick — Thu, 16 Apr 2009 00:13:06 GMT

I would definitely do a search on here for goodwill letters. You'll find many examples. Also, $25 or $2500, it's not the amount that matters it's the fact that the amount was late. Sorry this happened to you.

Message Edited by clocktick on 04-15-2009 05:13 PM

Re: 100 Point Drop in FICO Score on $25 late payment

Anonymous — Thu, 16 Apr 2009 00:15:52 GMT

Thanks guys. I'll write a GW letter to Neiman-Marcus, see if that gets me anywhere.

Re: 100 Point Drop in FICO Score on $25 late payment

Anonymous — Thu, 16 Apr 2009 00:27:32 GMT

Good luck Bp...let us know how this works out.

Re: 100 Point Drop in FICO Score on $25 late payment

Anonymous — Thu, 16 Apr 2009 00:41:24 GMT

Yeah, a new late will kill you. Definitely do the GW. And set up all accounts on auto draft minimums from the CC just in case something gets missed on the home front.

Message Edited by txjohn on 04-15-2009 05:41 PM

Re: 100 Point Drop in FICO Score on $25 late payment

Anonymous — Thu, 16 Apr 2009 01:48:11 GMT

@Anonymous wrote:
Yeah, a new late will kill you. Definitely do the GW. And set up all accounts on auto draft minimums from the CC just in case something gets missed on the home front.
Message Edited by txjohn on 04-15-2009 05:41 PM

Agreed. I have direct debit set-up on my AmEx, Discover and FIA Visa accounts. A quick scan of your bill and the direct debit amount each month will make sure everything's copacetic.

Re: 100 Point Drop in FICO Score on $25 late payment

Anonymous — Thu, 16 Apr 2009 08:40:12 GMT

I recently paid Juniper late because I used the card to get gas and forgot. I called them and explained I flat out forgot to pay. The guy I talked was nice and told me everyone makes mistakes and they waived the late payment fee and the late payment never hit my reports. I forgot how many times I thanked him but just call and see what they say.

Message Edited by l9ikjam on 04-16-2009 01:40 AM

Re: 100 Point Drop in FICO Score on $25 late payment

fishbjc — Thu, 16 Apr 2009 14:01:01 GMT

I feel your pain. Work that GW letter and keep working it. Eventually someone may have pity on you.

Re: 100 Point Drop in FICO Score on $25 late payment

Anonymous — Thu, 16 Apr 2009 15:07:37 GMT

doesn't anyone think that its absurd that 1 late pay on even ONE DOLLAR will lower your score by 100 points? that can put a prime borrower into sub-prime status. all over ONE DOLLAR on one single missed bill.

our credit scoring system is fatally flawed. you can have a lifetime of perfect credit, and then miss one dollar by one day, and suddenly your score gets hammered by 20 percent.

Re: 100 Point Drop in FICO Score on $25 late payment

Anonymous — Thu, 16 Apr 2009 15:25:05 GMT

@Anonymous wrote:
doesn't anyone think that its absurd that 1 late pay on even ONE DOLLAR will lower your score by 100 points? that can put a prime borrower into sub-prime status. all over ONE DOLLAR on one single missed bill.

our credit scoring system is fatally flawed. you can have a lifetime of perfect credit, and then miss one dollar by one day, and suddenly your score gets hammered by 20 percent.

Makes sense to me. Sounds like a great incentive to stay current.

1 late payment on your report could be the notice needed to stop a lender from giving you another loan in that period you were trying to get, to bet at the track and get yourself caught up, or buy lottery tickets or scractch offs.

Never forget: with the exception of home and car loans, most credit extension is done without collateral- you don't pay and the lender gets nothing tangible. move in with your parents, cancel/change your cell phone number
and credit card companies have very few ways to recoup their money.

And to be honest, I have never heard of anyone showing "late" for a few days post due date payment, in most cases you have to go a few weeks for it to hit your credit report.l.

Re: 100 Point Drop in FICO Score on $25 late payment

Anonymous — Thu, 16 Apr 2009 15:33:05 GMT

i hope you are being facetious. you are saying that someone could have 20 years of perfect credit history, then one month when they switched to electronic online payment or something and they are a week late on a ONE DOLLAR BALANCE, then they pay it off and continue to have perfect credit history for years.

according to you, that person is now an unacceptable credit risk and an all-around bad person. in fact, you said a 1 dollar late payment is a good indicator that they are gambling at the race track and buying lottery tickets.

let me guess- actually I dont have to guess. you work for a CRA, dont you?

no human with a soul would actually respond the way you just did.

Message Edited by jimtherealestateguy on 04-16-2009 08:33 AM

Re: 100 Point Drop in FICO Score on $25 late payment

Anonymous — Thu, 16 Apr 2009 18:13:32 GMT

@Anonymous wrote:
i hope you are being facetious. you are saying that someone could have 20 years of perfect credit history, then one month when they switched to electronic online payment or something and they are a week late on a ONE DOLLAR BALANCE, then they pay it off and continue to have perfect credit history for years.

according to you, that person is now an unacceptable credit risk and an all-around bad person. in fact, you said a 1 dollar late payment is a good indicator that they are gambling at the race track and buying lottery tickets.

let me guess- actually I dont have to guess. you work for a CRA, dont you?

no human with a soul would actually respond the way you just did.
Message Edited by jimtherealestateguy on 04-16-2009 08:33 AM

I am sorry if you don't like facts,

I hate the fact that two high blood sugar readings and you are medically considered a diabetic. Does not change the factual diagnosis of it.

And again if you are so put together that you have never missed a payment in 20 years, how come you could suddenly forget a payment? in its entirety. a week late does not go on your credit report.

Or maybe us people barely scraping buy that plan out or monthly payments a month in advance have a better system?

Message Edited by usmc58555 on 04-16-2009 11:13 AM

Re: 100 Point Drop in FICO Score on $25 late payment

Anonymous — Thu, 16 Apr 2009 18:11:59 GMT

So you admit you work for a CRA, and you claim that anyone who has a 1 dollar payment that is 1 week late is a deadbeat who spends their time at the race tracks and buys lottery tickets.

Do you kiss your mother with that mouth?

Re: 100 Point Drop in FICO Score on $25 late payment

Anonymous — Thu, 16 Apr 2009 18:25:00 GMT

This is a friendly reminder that we all need to be friendly, supportive, and respectful of one another-- even in times where we disagree.

The OP's question has been answered and this thread has been locked.