Recent late on my credit

[wyattm]

I had a 30 day late back in sept on 2007, and I have been current up until last month. I have been trying to get qualifed for an FHA loan, but I needed one year of no lates. I tried everything to not be late, but circumstances arose and we just couldn't make the payment. Is there any way to get this late removed from the credit reports? How much will this affect my scores? Thank you in advance for the advice..

[guiness56]

Is it your only late?

You can try a GW. If it was your only one, they may act in your favor.

Any late will affect your score for the first 1 or 2 years. If you can get it removed you will probably see some sort of score boost. I may be incorrect on that.

[wyattm]

What is a GW? I had 2 lates last year, but Sept of 07 was the most recent.

[Anonymous]

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@wyattm wrote:

What is a GW? I had 2 lates last year, but Sept of 07 was the most recent.

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A GW is a letter requesting that they show you some "goodwill" and remove the lates, delete a negative tradeline from your report, increase your CLI, etc.

You can do a search on "GW" here and get oodles of GREAT examples, but I personally believe that YOUR own words will have the greatest effect. You simply write the creditor in question a letter explaining that you understand that the lates were YOUR fault, that you were going through _______ (insert description of finance-affecting situation here) and how sorry you are for their trouble. Then you ask that they please show you kindness and ________ (insert desired action here).

Personally, I think that calling in a GW would have more success. The person on the other end of the line can hear the sincerity in your voice, and their talking to you makes you more ... human, in their eyes. It's easier to dehumanize and become desensitized to a person's needs if just dealing with the written word (basic psych 101).

Also, if there are any extenuating circumstances, you have a better chance of explaining them while on the phone via dialog (and answering questions they might have) rather than relying on someone taking the time to write a personal letter BACK to you with any questions they might have. Personally, I'd bet $100 that many reps would LIKE to give some GW love out, but simply don't have the time to initiate a written dialog -- AKA write you back with questions.

But that's just been my experience with people. Of course, having a corn pone Southern accent might help!

[Anonymous]

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wyattm wrote:

What is a GW? I had 2 lates last year, but Sept of 07 was the most recent.

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wyattm,

Please see the "Guide to Common Abbreviations" thread stickied at the top of this forum.

http://ficoforums.myfico.com/fico/board/message?board.id=rebuildingcredit&thread.id=584

Also, please read at least the first post in the Credit Scoring 101 thread linked in my siggy if you haven't already.

[wyattm]

Thank you for the quick responses. In your opinion do you think I should ask for all of the lates to be removed or do you think I'll have a better chance at just the most recent late? When we first took out the auto loan it was only because my hubby's employer agreed to pay it as part of his salary. Shortly after working there his employer went out of business and we got stuck with the payment. Then after that we opened up our own business and due to business being extremely slow, we could not make our payment last month. Do you think I should explain all of that or is this over explaining myself? Thank you!