topic Re: Recovering credit score points from a late payment. in Understanding FICO® Scoring

Recovering credit score points from a late payment.

Anonymous — Sun, 10 Dec 2017 01:25:26 GMT

So,I have a little bit of a dilemma and question.I am just shy of my 1 year anniversary from a Chapter 7.About 5 months ago,I got a Cap 1 Platimum unsecured card.Made solid on time payments for the first 4 months,but screwed up this month.I thought I had scheduled a payment from my BofA Checking account,but in fact I didn't.Just paid the past due amount today...9 days late.As a result my credit score dropped 61 points(AARGH).My question is,how long,with no further late payments(I didn't even have any late payments pre-Chapter 7)will it take me to recover those lost points?And does anyone have any helpful tips to recover it?Thanks in advance.

Re: Recovering credit score points from a late payment.

Anonymous — Sun, 10 Dec 2017 01:32:21 GMT

When you say you were 9 days late, do you mean 9 days past your due date or 39 days past your due date, meaning 9 days late on avoiding a 30 day late payment? If you lost 61 points, it sounds like you were > 30 days late. If this is not the case and you were only 9 days late (past your due date) you shouldn't have had that reported to the CRAs, so you would be able to get that removed.

If you were indeed > 30 days late, your best bet is to request a GW adjustment from the creditor. You could try this with a phone call, but I recommend writing letters. If you can convince them to remove it, you'll see those points come back immediately (when it's removed). If they don't, you have to wait for it to lose it's impact, which will take time. Most say that 30 day late payments only adversely impact FICO scores for about 2 years, so maybe after 1 year you get back around 30 points and perhaps after 2 years you get back the other 30 or so. These things are profile-dependent, so they are tough to quantify.

My suggestion is go for a GW adjustment and attempt to get those points back right away rather than waiting 2 years.

Re: Recovering credit score points from a late payment.

Anonymous — Sun, 10 Dec 2017 01:35:38 GMT

This graph is a generalization based on my research into late payments and FICO scoring. This is just a generalization but has proven correct for many folks. Because you likely have a BK reporting, your points lost are less than someone who has a clean profile, so you didn't lose all 100 possible points but 60.

As you can see, ONE 30 day late corrects itself in 12 months and probably get 40 points back in a year.

I built a late payment forecasting spreadsheet for people who have multiple lates if you want it, but it won't help you because 1 late is well matched to the graph above.

One thing I would do is pay on time for 6-12 months and then send Capital One a goodwill saturation method chain of letters to see if they will remove it.

Note that a 30D late means you were 39 days late, not 9 days late. You missed TWO payments.

Set up autopay. Today. Immediately. On all credit cards.

Re: Recovering credit score points from a late payment.

Anonymous — Sun, 10 Dec 2017 01:40:11 GMT

Thanks for the replies.To clarify...the payment was due Dec 1st,and I paid today,December 9th...so definitely not 30 days+.I just got off the phone with Cap 1,and I explained my shortsightedness,and they were gracious enough to remove the $25. late fee.

Re: Recovering credit score points from a late payment.

Anonymous — Sun, 10 Dec 2017 02:07:09 GMT

I think I may have found part of the problem.Last month I got a Lend Up Arrow Card,with a $1000 limit(I have only charged $150 to date).When I looked at my TransUnion and Equifax reports tonight,this card has yet to show up on either as an open account.So my total amount due from Cap 1 was $290 out of a $500 limit,which translates to a whopping 58% credit utilization.Do you think they may be part of the sudden and sharp decrease,because from what I am reading online,most card issuers don't report accounts as late to the bureaus until 30+ days after.

Re: Recovering credit score points from a late payment.

Anonymous — Sun, 10 Dec 2017 02:37:05 GMT

If you're not seeing a late notation of 30D, you didn't get one. 9 days late will NOT mark you as late.

Your FICO score drop was probably due to utilization both aggregate and individual. Do you have a calculator to calculate your current utilization aggregate and individual? If not, PM me I'll send you one and you can report back with the #s.

High aggregate utilization + high individual utilization MAY cause a high drop in scores. Where are you getting your scores from? MyFico or CCT or something?

Re: Recovering credit score points from a late payment.

Anonymous — Sun, 10 Dec 2017 03:14:26 GMT

So as of this moment,my credit utilization is 58%($290 amount owed divided by $500 credit limit).Once my $167 payment that I made tonight,and the $25 late fee(which Cap 1 is crediting me)is posted on Monday,that brings my amount owed to $97.That brings the Cap 1 utilization down to 19%.The Lend Up card that hasn't been reported to the bureaus yet,has a $166 balance on a $1000 limit,which brings that utilization to 17%.Combined they will have a $267 balance out of a $1500 limit with a credit utilization of 18%.I got my scores from both Credit Karma and Cap 1's CreditWise.

Re: Recovering credit score points from a late payment.

Anonymous — Sun, 10 Dec 2017 03:39:24 GMT

Oh is that your ONLY credit report reporting?

You definitely will get dinged for 59% utilization since it's both aggregate AND individual.

Individual 59% could ding you for as much as 15-20 points.

Aggregate 59% could ding you for as much as 40 points. That's 60 points right there!

Pay it down to 8% total and you'll recover as much as 60 points.

Re: Recovering credit score points from a late payment.

Anonymous — Sun, 10 Dec 2017 03:45:03 GMT

Cool.Thanks so much for all the helpful advice.Very much appreciated.

Re: Recovering credit score points from a late payment.

Ardecko — Sun, 10 Dec 2017 04:18:25 GMT

@ABCD2199 Do you have any feel for how multiples stack up, especially in the 90+ category? (ie, how many points penalty am I possibly at)

These are my only baddies. I've started a GW campaign on this, but I expect to have to wait out the 24 months.

Re: Recovering credit score points from a late payment.

Anonymous — Sun, 10 Dec 2017 05:33:32 GMT

@Anonymous wrote:
I got my scores from both Credit Karma and Cap 1's CreditWise.

Be aware that those scores are not FICO scores. The use the VantageScore 3.0 model, one that few if any real lenders use. You'd be wise to obtain your FICO scores. You can get your 3 FICO 08 scores for $1 from Credit Check Total. For a quick and free FICO score, go to creditscorecard.com and within 5 minutes you'll have an idea of where you stand.

Re: Recovering credit score points from a late payment.

Anonymous — Sun, 10 Dec 2017 05:37:01 GMT

Ardecko, that 120 day late will supress your scores by anywhere from 60-110 points IMO. In terms of late stacking up, really only the worst severity late is the constraint to your better scores. All of the lesser 30's and 60's really don't matter when you have a major present.

I say 60-110 points because it really depends on the profile. When my final 120 day late came off (which was 4.5 years old) I saw around a 70 point gain on my FICO scores.

Re: Recovering credit score points from a late payment.

Anonymous — Sun, 10 Dec 2017 06:58:48 GMT

BrutalBodyShots...so I went to creditscorecard.com,and got my scorecard.My Fico 8 right now is 605...slightly higher than VantageScore.My concern is Experian,who provides the info for the scorecard,says on the scorecard that I have 11 total accounts,2 Installment Loans,and 9 Revolving accounts.The 2 loans and 7 of the revolving accounts were closed due to my Chapter 7 filing in December of 2016.Tried pulling the report on annualcreditreports.com,but I guess Experian doesn't do online reports anymore.Any thoughts?

Re: Recovering credit score points from a late payment.

Anonymous — Sun, 10 Dec 2017 06:59:57 GMT

I pulled my TransUnion report,and all accounts are accurate and up to date.

Re: Recovering credit score points from a late payment.

Anonymous — Fri, 15 Dec 2017 09:06:13 GMT

@ABCD2199 You graph is right on the money - I have a 30D that is 6.5 years old and it is still biting me for about 25 points

Re: Recovering credit score points from a late payment.

Anonymous — Sat, 16 Dec 2017 09:07:01 GMT

@Anonymous wrote:
@ABCD2199 You graph is right on the money - I have a 30D that is 6.5 years old and it is still biting me for about 25 points

How do you know that? I would think it's next to impossible to quantify how many points that 30 day late is impacting your scores currently with its age being 6.5 years old. Now, when it ages off you can certainly quantify it's ending impact by seeing how much your scores improve at that time. I'm just curious how you're attempting to quantify the impact of that 6.5 year old delinquency at this time?

Re: Recovering credit score points from a late payment.

Anonymous — Tue, 20 Nov 2018 02:50:10 GMT

Would you mind sharing your spreadsheet with me if it’s not too much trouble? I have 18 lates and believe this would be very helpful.