A couple questions from a FICO newbie

[Anonymous]

I recently made it my New Years resolution to understand my credit score.  I started by ordering all 3 of my credit reports.  I then purchased a book and got a 20,000 foot view of things, interesting and at times counter-intuitive!  Then I began looking at detail into my reports. 

I have an 19 year spotless history of payments on numerous credit cards, installment loans, mortgages, etc..............with one exception.  About 14 months ago when we sold our home our closing date was about a month beyond our next payment due date.  I talked with the bank and they were fine with me just paying off the loan at closing.  Never having really thought about any ramifications on the credit side of things I just thought it would be paid off in a month anyway and save me a little cash flow in the meantime.  Long story short, it is showing up on 2 of the 3 credit reports as the only blemish in my 19 year history, a dreaded 30 day late.  The loan is now of course long since paid in full and satisfied and I realize as I learn a 30 day late has a more negative consequence on a perfect credit record like mine than it does on an imperfect one.

2 questions.  First, is it worth my time (14 months later) to contact my bank and try to to get them to contact the credit bureaus to rectify this - will it be a huge bump in score or is it just a pride thing for me?  I am fairly confident they will coorperate as I have been a good client to them for many  years.  and Second, if yes, how is this function actually done, does the bank write a letter or call the credit bureau, or do I?  I assume I would work with the bank and not dispute it via the credit bureau?  Hoping to understand how I would go about this (if it's worth the credit score increase to chase).

Thanks to anyone who can shed some light on this!!

[RobertEG]

They dont have to "discuss" anything with the CRA.  All they have to do is send them a deletion of the prior reporting.  The CRA will simply process the deletion through their automated system.

You dont communicate with the CRA.  It must come from the party who reported it.

If you cant get deletion, a 30 late is a minor derog.  Most, if not all, of its scoring impact will have dried up after 2-3 years.  It is not serious, but certainly worth the effort to get deleted.  A bank will probably be more willing to assist you than a CC company.  Many lates are simply cranked out by their computer systems.  A human ear can be forgiving.

[Anonymous]

Hello and welcome to the forums!

To address your questions let's look at it in two parts-

1. Yes - the 30 day late so recently is having a very detrimental impact on your credit score so it is definitely worth your time to address this issue. As time passes it would have a lessening effect, but with no action on your part it will remain for a period of 7 years, and it will take 2+ years for the impact to lessen.

2. The bank is the only one who can do anything about the reporting. The credit bureau will not take any info from you to directly change the reporting. As you alluded to you could do a dispute with the bureaus, however the factual information is correct. The payment was indeed 30 days + late, so there is no valid reason for dispute. What you can do, especially since you indicated you have a good relationship with the bank, is a process we call Goodwill. What it means is you write a letter to the bank (or a bank executive you have a relationship with) and explain the circumstances and request their "goodwill" in rectifying the situation. There are examples of such letters in one of the stickied threads at the top of the forums, probably in the rebuilding your credit forum. In the letter you want to be polite and stress the importance of a good future relationship with the bank. Their credit reporting department can make an adjustment with the credit bureaus and remove the late payment notation.

Please be aware that it is contrary to the banks agreement with the credit bureaus to do this, and you may run into some initial reluctance or refusal to do it. But it has been (is) done on a regular basis for people and persistence is often the key.

Good luck and let us know how it works out for you.

Edit to add: and RobertEG said it in a lot fewer words.

[Anonymous]

Thanks so much RobertEG and HoldingOntoHope, I appreciate you taking the time to reply. One follow up question.....I will contact the bank, and I am fairly certain they will be fine doing a deletion of the prior recording. If so, how long (approx) does it take for The FICO score to re-adjust to the deletion. Again, many thanks for your help.

[pizzadude]

Your FICO score is calculated from your credit report as it appears at the point in time when you requested the score.   So once the late is removed, any subsequent FICO scores based on that report won't reflect the late payment.  

I hope that they will work with you to remove it.....Good luck !!