13 months ago, I went 120 days late on 4 student loan accounts. I had good credit before that, but afterwards I obviously didn't. As of June 2017, my scores hovered around 600. After almost a year of rebuilding, my scores sat between 683 and 700, and I had a prequalifcation offer for the Amex Gold.
I wanted to apply, but I wasn't convinced that I could be approved for any good cards with 120 day lates being only a year old. Nevertheless I gave it a go, and to my surprise I was approved immediately for the gold card with an EX Fico 8 of 683, 1% utilization, and 4 HPs. So I suppose it's possible to apply for nice cards once your uber lates reach at least a year old, but that's not all that happened...
After I applied, the HP dropped my score by 4 points, to 679. I was fine with that, but I noticed something strange: When that happened, the "recent late payment" reason code, which disappeared when my lates reached a year old, suddenly reappeared, even though they were only a year old. This only happened on my EX Score. It become even more interesting because a few weeks later, a HP from last year aged to a year, and I received the ponts back - it increased my score back to 683, and the "recent late payment" reason code disappeared again. Bizarre.
I am wondering if anyone has any info on how lenders view severe lates over a year old. I would've thought I had no chance on applying for decent cards, but apparently I do... at least for Amex. I am half interested in applying for the CSR or Amex Platinum in the Fall - but I am not sure how those lates will be viewed in that case. Anyone have any ideas? If it helps, by that time I will have had a perfect 3 year history with Chase (Amazon Prime Signature Rewards Card) and a 6 month history with the Amex Gold, and my EX score will be over 700... I am new to Amex, but I have already noticed a few prompts from them (already) to try upgrading to the Platinum - is that standard? Thanks.
It depends on what was late. Student loans falling behind aren't out of the norm. When I was at Chase, we didn't care about medical collections (within reason) and according to my ex-co-worker that's still there, they still don't care about medical collections.
BTW, you can't upgrade to the platinum in the first year because of the CARD act. But, you can outright apply for one if you wanted to.
Ah, is that so? Student loans are pretty much all I have that are negative, so I guess that's a plus. I've heard that going late (but then paying) loans is much better than bankruptcy or charge offs - at least in terms of how lenders view them, but not in terms of how they affect your score... since you eventually made good on them, despite the late.
I have heard that you can't upgrade, so that's why I found it strange that they were suggesting that I try. If I did go for it, I would apply for it outright like you said.