Correcting Indigo Card Credit Reporting Error

[Anonymous]

We were all ready to buy a home--- literally about to start the process the Monday. Last week, however, I woke up to my scores dropping a huge 55 points because Indigo MasterCard reported I maxed out my $300 credit line.

What actually happened was the auto-pull set up for the mid month and nothing pulled out! Nothing on bank statements and customer service even has notes that it didn't pull. I went ahead and manually made a payment the morning of the 23rd once I realized nothing had changed in the account. Unfortunately, the payment posted on the 24th, and the statement came out later day of the 23rd. Statement had me maxed out.

The reps have admitted the company's fault, but are saying the process could take up to 60 days. We cannot wait that long to start home buying as we are month to month with very high rent. I am wondering if I should take another more direct route to get this removed? Should I go to the bureau directly? Should I write a letter?

Any experience or expertise would be helpful!

[K-in-Boston]

As it is not a reporting error (but rather a payment that wasn't pulled in time to reflect prior to statement reporting), I would not dispute it with the credit bureaus.  I would contact Indigo to see if they can do mid-cycle reporting to show your now lower balance and as soon as that is reported to the credit bureaus, your scores will bounce back.  Worst case, it should be updated just after the 23rd when your statement closes, not in 60 days.

If anyone has information on whether Indigo will do mid-cycle reporting, please chime in.

[Anonymous]

That it's good advice..I wasn't even aware that you could ask for that. Say they refuse to do this.. Is there a reason not to go to bureaus directly? I'm just concerned that my scores will go up, but not up all the way back. I'd hate to have to put our life on hold because they can't even be trusted to take my money correctly!

[Remedios]

Indigo will not report mid cycle. Lenders that do are exceedingly rare.
Yes, there is a good reason why you should not dispute.
Accounts under dispute are temporarily excluded from scoring while dispute is ongoing. While this type of dispute could only last a few days, several weeks are also a possibility.
Depending on number of cards you have, and their age, exclusion could be a bad thing.
Your best bet is to wait till it reports again

[CreditInspired]

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@Anonymous wrote:
We were all ready to buy a home--- literally about to start the process the Monday. Last week, however, I woke up to my scores dropping a huge 55 points because Indigo MasterCard reported I maxed out my $300 credit line.

What actually happened was the auto-pull set up for the mid month and nothing pulled out! Nothing on bank statements and customer service even has notes that it didn't pull. I went ahead and manually made a payment the morning of the 23rd once I realized nothing had changed in the account. Unfortunately, the payment posted on the 24th, and the statement came out later day of the 23rd. Statement had me maxed out.

The reps have admitted the company's fault, but are saying the process could take up to 60 days. We cannot wait that long to start home buying as we are month to month with very high rent. I am wondering if I should take another more direct route to get this removed? Should I go to the bureau directly? Should I write a letter?

Any experience or expertise would be helpful!

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I'm slightly confused. Is it a maxed out card or is it a late payment? What date was payment due? And did you go over the CL. I'm only trying to get some clarification. If it's a maxed out card, no worries, your UT is temp and points will rebound. Did you PIF? 

However, if payment was 30 days late, that's a different story. 

Also, what does the rest of your credit profile look like if you dont mind providing some DPs. 

[Anonymous]

No problem.

-For clarification, I did use the card to the max $300 without realizing, but it should not have reported as the automatic payment was set to clear it all on the 21st.

-Since I noticed the automatic payment wasn't even pending, I manually paid $200 on the 23rd.

-The statement posted later the day of the 23rd and my payment posted the next day the 24th.

[Anonymous]

For the second half of your question, I actually don't have much else on my credit. I have one other card with no problems, an authorized user account, and an auto loan.

[Remedios]

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@Anonymous wrote:
For the second half of your question, I actually don't have much else on my credit. I have one other card with no problems, an authorized user account, and an auto loan.

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In that case, if the account is temporarily removed from scoring during the dispute, you'd still need to wait till it's completed, because with no accounts of your own, you have a good chance of experiencing further score drop.

So, you can dispute, but you will need to wait till dispute is completed, or you can wait another 20 days (some cra take longer to update, so dont start anything till you see new balance reflected.

Another thing, and I dont want to confuse you too much here, but if AU account is the only one reporting a balance, there could be some points lost there too.

It would be a lot better if AU account reflected $0.00 balance, with your own reporting something little like $10.00

If both accounts report 0, you guessed it, even bigger scoring drop. 

[Anonymous]

@AnonymousIf all your AU accounts report zero and they are properly counting, expect a dip on your version 8 scores. However this is nothing to worry about because that’s not the score used for mortgages.

As @Remedios said, for mortgages it’s better to have all cards reporting zero except for one primary.

[lot08]

If time is a priority as you mentioned... your best option is having a mortgage loan officer due a Rapid Rescore for you... note not all will want to do this as it costs them money as they legally can not charge you for it... Find a loan officer you like, explain your entire profile prior to letting them pull credit and see what they say... But without doubt, Indigo is not going to correct this for you in the time period you need... a rapid rescore done by your loan officer can make your timeline work...