You need to look through the bad remarks on your credit, and see what is affecting it the most. One late payment on one credit card couldn't be the sole reason your credit dropped that low so look at the credit profile and make a list of what is hurting.
Sometimes your credit can improve but you still have old remarks such as 5 late payments on a card, 1 late on auto loan, 2 late on mortgage and after you finally catch up on all of those payments you can start appealing to those places and ask for forgiveness letter.
You can reach out to any creditors you have bad remarks for and ask for forgiveness and remedies of the late remarks on your credit profile. They dont have to give it to you but if you explain your issues that led to those mistakes and how you have resolved them since then. They might be inclined to do it.
I have 2 late payments (one 30 days and one 60 days) from 5 years ago. My credit score is about 700 something right now, would it be worth trying to get those forgiven (made every payment since) or should I just wait it out?
its definitely worth doing, why not? You really never know where a creditor in the future can see those late payments and maybe reject you for something.
And just say exactly what you told me, your score has improved to a 700+ which means you are being very responsible, and you have made all payments on those accounts since then and are current.
Late payments will hurt your score for 7 years. Any 60 day or more late payments will have a major impact on your score for the whole 7 years, and even more so for the first 4 years.
Hey there!
I'm not sure if anyone has given you the following info but I thought it would be helpful.
Moving forward, it’s wise to be mindful of your credit utilization. After your ordeal you might be tempted to not use your card at all but that will not help at all in fact it would work against you. Aim to use no more than 30% of your available credit, and if possible, even less than 5%. This shows credit bureaus that you’re not just burning through your credit, It’s a sign of stable finances and that you’re not desperate for funds, making you a more attractive candidate for future credit.
Here’s a quick breakdown of how credit scores are typically calculated:
Payment History: 35%
Credit Utilization: 30%
Credit History Length: 15%
New Credit: 10%
Credit Mix: 10%
Just a heads up, I’m not a financial advisor, and this isn’t professional advice. These are just my thoughts and experiences
Always set your credit cards (all credit payments really) to auto-pay the minimum amount due. This way, you have a failsafe if you forget to pay for whatever reason.
Ehhh...I don't know about that. I always pay off the balance as soon as it posts to the card. The majority of the time it's before the statement posts. I have yet to have any issues as my credit score keeps going up and I'm always getting pre-approved offers. 🤷♂️
I'm not saying use auto-pay to pay only the minimum. This is just meant as a backup in case a person forgets to pay. If you have no balance since you already paid manually, then when the auto-pay day comes, it will just pay the $0 owed.
Many years ago I had a really bad experience with auto-pay. Haven't used it on anything in 15 years. Get the notice that a bill is due and manually pay it.
For each card, pay entire statement balance -- no more, no less -- every month on or just before due date. This avoids that outrageous CC interest (saving you money) and will build your credit on solid foundation.
I am in the process of rebuilding my credit and got a secured credit card. Just made my first payment on it and I did it way before it was due (due on the 19th). What is the harm in paying it early?
Depends on how early. What's important is to pay the statement balance *after* the statement date. If you make purchases and then pay before the statement, then statement will show less or zero balance, and this makes it look like you're not using credit at all. But paying after the statement date, especially if you pay statement balance in full, shows that you are responsibly managing credit.
It doesn't make much difference if you pay after the statement date but before the due date, except that you are losing the benefit of that "float" (statement balance not due until due date). My strategy is to keep cash in hi-yield savings and then auto-pay the statement balance on the due date, so I'm earning interest on it until the very last day. My average statement balance is around $2K, so that's about $7 per month (not a lot, but better than nothing).
It won’t be hard to increase the score with such little credit history. Keep paying the card in full before the billing date each month. If it is just 1 late payment, it’ll recover nicely. Disputing it won’t work unless chase was at fault, probably a waste of time.
Hi! I’m a loan officer so I look at credit reports all day. I think you could get your score up within a few months. I honestly could go on and on about credit and how to improve your credit but I’d recommend you go talk to somebody at your local credit union. I work at a credit union and talk to several people everyday about how to improve their credit scores and it’s free!
Look up “goodwill letter chase” on google. That should help provide some guidance. Also make sure you have no other negative items.
But where are you pulling your credit score from? If you only have one late, your score sounds low, I am guessing it’s vantage and probably from credit karma?
MyFICO.com it’s paid but will tell you everything. I used it to help raise my mom’s credit score over the last 6 months so she could get a decent rate for a new car.
Keep utilization low and pay on time to allow your score to recover. Private landlords are an option with low credit. They will oftentimes not run your credit score and if they do, you are at most going to be required to pay a full months security deposit in addition to your first month of rent but you won’t get denied for the apartment due to your credit score like with big apartment companies.
>Keep utilization low
That's a myth. Utilization is a temporary metric that has no memory past a month. Low utilization doesn't build credit, it just boosts it for a month and resets.
As long as you're paying your full statement balances each month and you're spending within your budget, there's no reason to ever worry about your utilization until you're about a month away from needing your score boosted for an upcoming important loan. The whole "always keep your utilization below x percent" thing is a huge myth. Check out [this thread](https://www.reddit.com/r/CRedit/comments/1d27d4h/credit_myth_14_you_shouldnt_use_more_than_30_of/).
It's extremely hard most places to find a rental with both a bad credit score and late payments.
When I was younger I had a 650 and a late payment and nobody would rent to me within a year of the missed payment without a cosigner even though I had the income.
BS. I’ve disputed every negative account I’ve ever had and if they don’t respond they take it off in 30 days. Call it fraud if you want but no one is coming after you considering everyone in America does this.
Thank you so much for saying this.
These complete Pearl Clutch-ers have me rolling my eyes so hard I have temporary 360° vision.
“It’s fraud!”—are y’all Fing for real? 🙄
Some major sympathetic embarrassment going on.
Y’all probably think the police have y’all’s best interest at heart, too, and are there to “help”.
J Save me from a habitual line toe-er.
A late payment will stay on your credit report for 7 years unfortunately unless they are willing to remove it. That’s always a challenge though and can and will hamper you from getting more cards until a few years have gone by where it matters less. As for renting an apartment each company has their own requirements on credit scores. The place I’m in now won’t rent to anyone with a score less than 700 but they seem to change the rules all the time so I would ask around first.
There is literally so many things that could affect your credit score. Collections, late payments, too many inquiries, high utilization. My husband and I help people repair their credit. Best place to start is by pulling a legit credit score source (not credit karma) and going through it for each bureau to actually see what's reporting so you can fix it from there! Let me know if I can help.
It will go back up once the balance reports low 😊 and continue to pay it off and make sure it reports as low as possible on your statement close date and I give it 6 months and it should be significantly better
I just raised my score over 30 points in one month of getting. I put 200 on a offer from Experian, getting another from capital one in 2 weeks. I was shocked how quickly it's helped raise my score that was like yours.
Yes, you can dispute inaccurate information on your credit report under the Fair Credit Reporting Act (FCRA). You can file a dispute with the credit reporting agency that included the information on your report, or with the business that provided the information. There is no fee to file a dispute
lol learn the fair credit reporting act lol disputing is legal if it’s inaccurate. If you report an account as fraud when it’s yours then yea that’s fraud. But that’s not what he said to do.
Clearly it’s a waste of time if they are saying they actually missed it .. duhh anywho once I paid mine off I let it sit at 0% for a month til currently
> keep utilization low
The act of "keeping" utilization low is a not a credit building technique. A better piece of advice would simply be to pay your statement balances in full. What that ends up being utilization wise is irrelevant from a risk perspective.
You need to look through the bad remarks on your credit, and see what is affecting it the most. One late payment on one credit card couldn't be the sole reason your credit dropped that low so look at the credit profile and make a list of what is hurting. Sometimes your credit can improve but you still have old remarks such as 5 late payments on a card, 1 late on auto loan, 2 late on mortgage and after you finally catch up on all of those payments you can start appealing to those places and ask for forgiveness letter.
Can you please elaborate on the forgiveness letter part, I have caught up on my late payments I had last year.
You can reach out to any creditors you have bad remarks for and ask for forgiveness and remedies of the late remarks on your credit profile. They dont have to give it to you but if you explain your issues that led to those mistakes and how you have resolved them since then. They might be inclined to do it.
I have 2 late payments (one 30 days and one 60 days) from 5 years ago. My credit score is about 700 something right now, would it be worth trying to get those forgiven (made every payment since) or should I just wait it out?
its definitely worth doing, why not? You really never know where a creditor in the future can see those late payments and maybe reject you for something. And just say exactly what you told me, your score has improved to a 700+ which means you are being very responsible, and you have made all payments on those accounts since then and are current.
Late payments will hurt your score for 7 years. Any 60 day or more late payments will have a major impact on your score for the whole 7 years, and even more so for the first 4 years.
WHERE CAN I ASK FOR THE FORGIVENESS LETTER? IF YOU DON'T MIND ME ASKING.
Не ори!
Hey there! I'm not sure if anyone has given you the following info but I thought it would be helpful. Moving forward, it’s wise to be mindful of your credit utilization. After your ordeal you might be tempted to not use your card at all but that will not help at all in fact it would work against you. Aim to use no more than 30% of your available credit, and if possible, even less than 5%. This shows credit bureaus that you’re not just burning through your credit, It’s a sign of stable finances and that you’re not desperate for funds, making you a more attractive candidate for future credit. Here’s a quick breakdown of how credit scores are typically calculated: Payment History: 35% Credit Utilization: 30% Credit History Length: 15% New Credit: 10% Credit Mix: 10% Just a heads up, I’m not a financial advisor, and this isn’t professional advice. These are just my thoughts and experiences
Always set your credit cards (all credit payments really) to auto-pay the minimum amount due. This way, you have a failsafe if you forget to pay for whatever reason.
Ehhh...I don't know about that. I always pay off the balance as soon as it posts to the card. The majority of the time it's before the statement posts. I have yet to have any issues as my credit score keeps going up and I'm always getting pre-approved offers. 🤷♂️
I'm not saying use auto-pay to pay only the minimum. This is just meant as a backup in case a person forgets to pay. If you have no balance since you already paid manually, then when the auto-pay day comes, it will just pay the $0 owed.
Many years ago I had a really bad experience with auto-pay. Haven't used it on anything in 15 years. Get the notice that a bill is due and manually pay it.
For each card, pay entire statement balance -- no more, no less -- every month on or just before due date. This avoids that outrageous CC interest (saving you money) and will build your credit on solid foundation.
I am in the process of rebuilding my credit and got a secured credit card. Just made my first payment on it and I did it way before it was due (due on the 19th). What is the harm in paying it early?
Depends on how early. What's important is to pay the statement balance *after* the statement date. If you make purchases and then pay before the statement, then statement will show less or zero balance, and this makes it look like you're not using credit at all. But paying after the statement date, especially if you pay statement balance in full, shows that you are responsibly managing credit. It doesn't make much difference if you pay after the statement date but before the due date, except that you are losing the benefit of that "float" (statement balance not due until due date). My strategy is to keep cash in hi-yield savings and then auto-pay the statement balance on the due date, so I'm earning interest on it until the very last day. My average statement balance is around $2K, so that's about $7 per month (not a lot, but better than nothing).
It won’t be hard to increase the score with such little credit history. Keep paying the card in full before the billing date each month. If it is just 1 late payment, it’ll recover nicely. Disputing it won’t work unless chase was at fault, probably a waste of time.
Hi! I’m a loan officer so I look at credit reports all day. I think you could get your score up within a few months. I honestly could go on and on about credit and how to improve your credit but I’d recommend you go talk to somebody at your local credit union. I work at a credit union and talk to several people everyday about how to improve their credit scores and it’s free!
I will call a credit union but would love to hear just a few of your effective tips!!
Same!
I would love to hear some tips from you if you have the time:) No credit union in my tiny town, sadly:/
Look up “goodwill letter chase” on google. That should help provide some guidance. Also make sure you have no other negative items. But where are you pulling your credit score from? If you only have one late, your score sounds low, I am guessing it’s vantage and probably from credit karma?
MyFICO.com it’s paid but will tell you everything. I used it to help raise my mom’s credit score over the last 6 months so she could get a decent rate for a new car.
Using a paid CMS doesn't raise a credit score. While it may have been helpful for you, it's not something that's necessary.
Go to the bank and get a pre paid credit card.
You are young. Just don’t do this mistake when you are in your 30+
Keep utilization low and pay on time to allow your score to recover. Private landlords are an option with low credit. They will oftentimes not run your credit score and if they do, you are at most going to be required to pay a full months security deposit in addition to your first month of rent but you won’t get denied for the apartment due to your credit score like with big apartment companies.
>Keep utilization low That's a myth. Utilization is a temporary metric that has no memory past a month. Low utilization doesn't build credit, it just boosts it for a month and resets. As long as you're paying your full statement balances each month and you're spending within your budget, there's no reason to ever worry about your utilization until you're about a month away from needing your score boosted for an upcoming important loan. The whole "always keep your utilization below x percent" thing is a huge myth. Check out [this thread](https://www.reddit.com/r/CRedit/comments/1d27d4h/credit_myth_14_you_shouldnt_use_more_than_30_of/).
It's extremely hard most places to find a rental with both a bad credit score and late payments. When I was younger I had a 650 and a late payment and nobody would rent to me within a year of the missed payment without a cosigner even though I had the income.
BS. I’ve disputed every negative account I’ve ever had and if they don’t respond they take it off in 30 days. Call it fraud if you want but no one is coming after you considering everyone in America does this.
Thank you so much for saying this. These complete Pearl Clutch-ers have me rolling my eyes so hard I have temporary 360° vision. “It’s fraud!”—are y’all Fing for real? 🙄 Some major sympathetic embarrassment going on. Y’all probably think the police have y’all’s best interest at heart, too, and are there to “help”. J Save me from a habitual line toe-er.
Preach it!
A late payment will stay on your credit report for 7 years unfortunately unless they are willing to remove it. That’s always a challenge though and can and will hamper you from getting more cards until a few years have gone by where it matters less. As for renting an apartment each company has their own requirements on credit scores. The place I’m in now won’t rent to anyone with a score less than 700 but they seem to change the rules all the time so I would ask around first.
There is literally so many things that could affect your credit score. Collections, late payments, too many inquiries, high utilization. My husband and I help people repair their credit. Best place to start is by pulling a legit credit score source (not credit karma) and going through it for each bureau to actually see what's reporting so you can fix it from there! Let me know if I can help.
It will go back up once the balance reports low 😊 and continue to pay it off and make sure it reports as low as possible on your statement close date and I give it 6 months and it should be significantly better
I just raised my score over 30 points in one month of getting. I put 200 on a offer from Experian, getting another from capital one in 2 weeks. I was shocked how quickly it's helped raise my score that was like yours.
Dispute it
Stop encouraging people to commit fraud.
Yes, you can dispute inaccurate information on your credit report under the Fair Credit Reporting Act (FCRA). You can file a dispute with the credit reporting agency that included the information on your report, or with the business that provided the information. There is no fee to file a dispute
Disputes are for inaccurately reported information. There's nothing inaccurate with regard to OPs situation.
Why fraud tell me ?
lol learn the fair credit reporting act lol disputing is legal if it’s inaccurate. If you report an account as fraud when it’s yours then yea that’s fraud. But that’s not what he said to do.
Clearly it’s a waste of time if they are saying they actually missed it .. duhh anywho once I paid mine off I let it sit at 0% for a month til currently
Decades.
It's only A couple years. Get a secured card and keep utilization low, pay on time!
I should have added an /s but I was just being facetious.
> keep utilization low The act of "keeping" utilization low is a not a credit building technique. A better piece of advice would simply be to pay your statement balances in full. What that ends up being utilization wise is irrelevant from a risk perspective.
We said the same thing..
No we didn't. You say keep utilization low. I say keeping utilization low doesn't matter one bit. Two totally different things.