Credit score dropped 186 points over late payment

[Bee71]

I'm in some hot water and could use some advice. I'm SO sorry this is so long!!

I had a credit score of 766 and in the last two years, it's never been below 710. I have $5K in CC debt across 2 cards and I'm paying more than the monthly payments and as long as no financial surprises come up, they're scheduled to be paid off by June. 

Two days ago, I found that my score dropped to 580 due to a late payment on my Target RedCard and they changed my credit limit from $1800 to $500. It was to be due Feb 8th. I immediately paid the balance once I got wind of it so there is nothing owed. In December, I set up automatic payments but I must have made a mistake somehow as I thought everything was caught up. I didn't get anything in the mail either so I though all was well. I don't believe it's been sent to collections yet. Looking back, in 2021, I had a payment that was 14 days late, paid the late fee and it wasn't reported to credit. In 2022, had another payment that was 3  days late, also not reported. Other than that, things have been fine. 

I talked to Target, they said there's nothing they can do and they're required to report it. I haven't talked to TD Bank USA, the bank that Target uses. I don't care about the late fees and I'm even willing to pay MORE fees, I just want this off my credit. My report says that there aren't any derogatory marks, my payment history went from 100% to 99%, my credit utilization is at 10%, my credit line/limit is at $89K, and there have been 4 hard inquiries (recent one was in February when I was getting qualified for a mortgage, others are years old).

I'm devasted. I can't stop crying because I'm going (or was) to be buying a house in September and now I've ruined my chances in getting a good rate, or even finding a bank willing to give me a loan with such a bad score. Even if I get a loan, my payments will be pretty hefty. I worked SO hard in getting my finances under control and building my credit, and now it's all gone to hell. I'm going to try writing a goodwill letter but I highly doubt it will help.

With my situation, as long as I keep paying down my open balances, is it at all possible to get my score at least to 700 by August? Is there anything else I can do besides wait?

Thank you for reading and offering any advice on this. I can't eat, I can't sleep, and this is all I can focus on. I feel so helpless.

[sznthescore]

What model of credit scoring did this drop occur?

[Epiki71]

OP, 

We all here understand your pain, as the above poster mentioned, can you please share where are you getting your score from? 

Finally, it's important to take care of yourself during this stressful time. Try to focus on things you can control, like paying down your debts and making sure your bills are paid on time. And remember that while credit scores are important, they're not the only measure of your financial success.

[FireMedic1]

You mjust be looking at Vantage scores. FICO doesnt drop that much. Some love auto pay. Some dont like me. I like to be in control of my finances and not a computer. Make it a habit. Coffee is done brewing. Sit down and look over your accounts min every few days. Good luck on yourt GW request.

[donkort]

What counts in mortgages, for the most part, are your FICO 5, 4, and 2 scores.  If your middle score of those scores are 620 or above, you're probably okay.  Especially 640 or 680 or above.

A 186-point drop for one late payment is excessive.  I once had a late, and my FICO 8 score dropped 86 - 100, depending on the bureau.  Other scores dropped similarly. 

Make sure there isn't something else that is bringing the score down.  Look over all your credit reports thoroughly.

[TRC_WA]

---

@FireMedic1 wrote:

You mjust be looking at Vantage scores. FICO doesnt drop that much. Some love auto pay. Some dont like me. I like to be in control of my finances and not a computer. Make it a habit. Coffee is done brewing. Sit down and look over your accounts min every few days. Good luck on yourt GW request.

---

@FireMedic1  @Bee71 

Exactly this.

I don't have a single bill on autopay.  I like to be in control.  I have all my bills on a spreadsheet on my PC... and I print out a list of bills with amounts and due dates and keep it in my wallet.

When I pay a bill I circle it as paid on my paper copy.  Easy to keep track of and impossible to miss anything.  If I don't see a payment posted to my checking account I notice it immediately and find out why.  I actually had that happen last month when I paid my Care Credit bill... the payment didn't post for like 4 days so I called them and I had accidently used my old WF checking account as a payment source.

The payment wasn't due for another week so it wasn't a huge deal.  I just deleted my WF account from my payment sources so it wouldn't happen again and then paid it out of the correct account.

Best of luck OP getting this cleared up!

[TRC_WA]

---

@donkort wrote:

What counts in mortgages, for the most part, are your FICO 5, 4, and 2 scores.  If your middle score of those scores are 620 or above, you're probably okay.  Especially 640 or 680 or above.

---

@Bee71  @donkort 

This too.

For the sake of comparison my FICO 8 scores are all in the 650-675 range... but my 5/4/2 scores are 690+.  My middle score is 698 as of today.  Not quite ready for a mortgage though.  

[Bee71]

I feel so stupid... I didn't even think to check my fico score. I was going off of what credit karma showed and when looking up my FICO score, I've only lost 46 points. Still a ding to my credit but I can at least bring it back up in time. 

[CYBERSAM]

I think you should call them and call them! If you can show that auto pay was setup and somehow it did not go through then you can make a case for them to reverse the late fees and then ultimately remove the late from your CR.

Typical customer service can not do this, so you need to escalate as much as possible.

If you can show this was an error and not intentional late payment, then you have a chance, slim but still a chance...

Don't give up!

[Rogue46]

I would call everyday if you have to and plead your case. Explain how hard you've worked to build your credit for the upcoming mortgage and explain it was an honest mistake. Eventually you will get to a rep that might show some compassion. I wish you all the best!