Desperate for Advice -

[Anonymous]

This may be a long post, but I need some advice.  About a month ago, my husband got approved for a VA Loan and we received a pre-approval letter so we can have it in hand to buy a house.  His mid FICO score was 675 and he only has one credit card, so debt to income ratio is excellent.  Well, our dreams were destroyed this morning with a credit monitoring alert saying that his credit score had changed.  We logged in, and Capitol One, the one credit card he has, reported us as 30 days late.  I pay on this card every month, some times a few days late, but definitly not 30.  When I went into the payment history, I had split the minimum payment in half because I had lost my job and we were tight on money, but the full amount was supposed to be payed on time.  But it looks like I forgot to hit submit on the scheduled payment.  No realizing we were 30 days late until this morning, I went in, have scheudled a payment to get caught up, and then enrolled in autopayments for twice the minimum payment, just to make sure it doesn't happen again.  My husband just got done with chat with Capitol One, explained everything, but will not make a goodwill gesture to remove the late payment.  So now, we have no idea what to do.  The pre-approval letter is good for three months, but if we don't find a house by then, they will re-pull the credit.  His credit score is now 531.  It dropped 144 points literally overnight.  All because of a stupid mistake.  What can he do?  When will his score go back up?  I can't believe this is happening.  He had a flawless payment record until now.  Just because I didn't hit the submit button.  I need some advice here guys.  What should we do?

[Anonymous]

Part of the problem is only having one credit card.

To his FICO it appears he defaulted on 100% of his revolving obligations.

[DR527]

I'm really sorry to hear that. And unfortunately. I'm not to knowledgeable on home loans. But I do believe that each type of loan has some room for mistakes. Something pretty similar happened to me a few months after credit one bank. Started to report to my credit.  I made my payment an hour after the close off time. But I made it. First time ever being late with them(Same day to me isn't late). The next week my score dropped 61 points across the board. I slowly stopped using that card afterward(just really upset). The next month I reported a zero balance paid on time. And my report jumped up 63 points. Not sure if this helps. 

[noobody]

Your money is tight but you didn't notice the money you supposed send to Cap1 still sitting there.
Your husband has ONE credit card, and you don't bother to check once per month.
Cap1 send me multiple emails 7-10 days before payment is due, my guess (because i do not remmber when the last time i was late) is they made calls and send emails.
If you have such hard time make minimum payment on a credit card, buying a house in near future may not be a good idea any way.

[Anonymous]

That's dependent on the reason for money being tight. (Saving for closing costs/Down Payment)

[CreditInspired]

I suggest you talk to your mortgage lender and promptly let them know the circumstances. The pre-approval is just that -- a pre-approval, no guarantee -- so it doesn't matter whether you find a house within 3 months or not. Once you put a contract on a house and it's ratified, it goes to underwriting where a full mortgage qualification is done -- another full credit report is pulled, income is verified, W2s and bank statements are requested, proof of available funds for closing, etc. I was a Realtor and I have witnessed lenders pull credit reports 24-48 hours prior to settlement to ensure there were no new credit lines opened, liens/judgement filed, or anything that can affect one's credit/eligibility to acquire a mortgage loan. Twice I've seen settlement not occur because in one case the purchaser bought a new vehicle, which shot his DTI ratio and the second due to a recently filed tax lien. Being up front with the lender is the first line of defense. He/she may have suggestions on how to get Cap1 to accept a goodwill letter. Good luck to you.

[AverageJoesCredit]

Telling the Op something they already know isnt constructive. OP, sorry about this. I would continue to try to contact executive office to try to get that goodwill, all they can do is say no and no you already have. Now, it is perhaps possible they are not willing to overlook this if you have had a habit of being a couple days late on your monthly payment, as you have stated, because then to them this wouldnt be first time but a habit. I think it is excellent advice to actually have more than 1 credit cards just so that if you ever max one your not completely maxed etc. I hope your able to find a house i wish you the best of luck, heck things like accidently not hitting the button happens to the bedt of us. We are human. Just learn from this and i highly recommend at least checking your accounts weekly just to stay on top of surprises

[creditguy]

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@DR527 wrote:

I'm really sorry to hear that. And unfortunately. I'm not to knowledgeable on home loans. But I do believe that each type of loan has some room for mistakes. Something pretty similar happened to me a few months after credit one bank. Started to report to my credit.  I made my payment an hour after the close off time. But I made it. First time ever being late with them(Same day to me isn't late). The next week my score dropped 61 points across the board. I slowly stopped using that card afterward(just really upset). The next month I reported a zero balance paid on time. And my report jumped up 63 points. Not sure if this helps. 

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Just curious, how is it possible your score dropped 61 points because you paid an hour late? At most that would be considered a day late and it would only report once your 30 days late. Was this a fako score? 

[DR527]

At the time I was over the credit limit. Forget how or why. But my credit utilization was 119%. I paid it on the last day of the statement. So it reported a few days after. And killed my credit ratio.  

[Anonymous]

Let's all remember we are here to help one another and not "throw rocks" or criticize or judge when someone asks for help. Asking for help is really hard for many people. Just a reminder. 

So sorry this happened to you, OP. I hope you have a happy outcome. Whatever happens, please just take it in stride and put it in the category of lessons learned. So happy you brought it to the boards.