A couple of credit score questions....

[Mr N8]

1. How long does it take for a 30-day late payment to essentially drop off from affecting your credit score? I have 1 from 18 months ago, and it still seems to have some affect.

2. How bad are dept store cards for your credit? I have a Sears and Target card that I used for a discount, and haven't touched them since. They are both inactive, no doubt, but still open. Should I call and have them closed, or reactivate them and keep them paid off?

 

[Smolek]

1. It going to be on there for the life of the line, but as long as you keep up your payments on time it will little by little lose it's harm. I would, however, suggest you write the company that issues the card and ask for a good faith correction if that's the only problem you had with the account. Explain the circumstances and tell them it would be greatly appreciated. Some will change it, some won't but it's worth a shot.

2. Not bad at all. Keep them open and just use them every few months and pay them off. They don't do any harm (as long as you pay on time) and only benefit you.

 

[StageLeft]

It will drop off after seven years, and have a decreasing influence on your score as time goes on...

 

[Smolek]

Originally posted by: Skoorb
It will drop off after seven years, and have a decreasing influence on your score as time goes on...

No, it will stay in the comments section for the Tradeline for the life of the account PLUS 7 years (10 in some spots) after the line is closed.

 

[Mr N8]

Originally posted by: Smolek
1. It going to be on there for the life of the line, but as long as you keep up your payments on time it will little by little lose it's harm. I would, however, suggest you write the company that issues the card and ask for a good faith correction if that's the only problem you had with the account. Explain the circumstances and tell them it would be greatly appreciated. Some will change it, some won't but it's worth a shot.

2. Not bad at all. Keep them open and just use them every few months and pay them off. They don't do any harm (as long as you pay on time) and only benefit you.

Good idea, I'll write a letter to their credit dept, and see if they can help me. It won't hurt to ask, and it sure would be good to have that gone.

Any else have any advice?

 

[kranky]

You'll probably improve your chances of getting a good-faith correction if you are an active customer. If you haven't done any business in the 18 months since you had the 30 day late, there isn't much motivation on their end to do you a favor.

 

[Mr N8]

Originally posted by: kranky
You'll probably improve your chances of getting a good-faith correction if you are an active customer. If you haven't done any business in the 18 months since you had the 30 day late, there isn't much motivation on their end to do you a favor.

I've been a very active customer. I keep the balance low, but there is activity almost every month. I think my balance right now is ~$120, and I've made on-time payments for just about 18 months, now.

 

[Mr N8]

Does anyone know where to get a sample letter to ask for removal of the 30-day late payment, to send to the creditor? If not, do you have any ideas of what should be said? I appreciate all the help!

 

[Smolek]

Here, just customize it
--------------------------------------------------------
YOUR NAME
YOUR ADDRESS 1
YOUR ADDRESS 2

Month Day , 20XX

COMPANY NAME
DEPARTMENT NAME
ADDRESS
CITY, STATE ZIP

Dear NAME:

I have been an company name customer since 19XX and during that time, I have enjoyed my experience with ________ (company name) greatly. I am writing to see if you would be willing to make a "goodwill" adjustment to your reporting to the three credit agencies. I have a late payments on the above referenced account that date back to 19XX. Since that time I have been an exceptional customer paying every month on time.

Because of my exceptional payment history over the last X years, I would like you to consider removing the negative payment from my credit report. At the time of the late payments, I ______________ (give a reason why it was late). I say that not to justify why the payment was late, but rather to show that the late payment is not a good indicator of my actual credit worthiness. I hope that company name is willing to work with me on erasing this mark from my credit reports.

I have been a very happy customer in the past and hope to continue a long relationship with company name. With today?s credit industry so competitive, I know how important it is to maintain good relationships with customers. _________ (company name) has been exceptional in my book so far and I highly recommend it to all my friends and relatives. I hope that you will deeply consider my request and prove once again, why company name is heads above the rest. I look forward to your reply.

Sincerely,



your name

 

[jdobratz]

Having too many open lines of credit will increase your revolving debt score. That is, the potential amount of debt you can incur should you choose to maximize all open lines of credit. This is not a huge factor in your score, but having many open lines of credit is most definately not good if you can avoid it.

 

[alent1234]

Originally posted by: Smolek

Originally posted by: Skoorb
It will drop off after seven years, and have a decreasing influence on your score as time goes on...

No, it will stay in the comments section for the Tradeline for the life of the account PLUS 7 years (10 in some spots) after the line is closed.

no it won't

by law negative info is supposed to come off credit reports after 7 years

best way to get rid of it before that time is to dispute it off

 

[Smolek]

Credit Card payments are different then collection accounts and disputing isn't the answer because he could end up losing the line reporting altogether.