Credit report question.

[Krutoy]

I recently applied for a credit card, and have been declined. The reason for the decline was because I had a 90 days past due account about a year ago, which I took care of since. Can anyone tell me how long that mark is gonna effect my credit for? Sincere help would be greatly appreciated.

 

[Orsorum]

What kind of credit card did you apply for? Do you have other open accounts at this time?

 

[Krutoy]

Applied for a Chase perfect card. I got MBNA, Citibank, Discover and Macy's cards right now. My debt/credit ratio is somewhere around 2000/6000.

 

[conjur]

Information stays on your credit report for 7 years.

But, since you were declined, you're eligible for a free copy of your credit report from the bureau they checked (you should get a letter in the mail stating the bureau they used...then contact them for your free copy of your report.)

 

[kranky]

Do you still have an account with the place where you were 90 days late? If you do, and you've been a good customer since that problem, you might be able to get them to remove that black mark.

 

[RossMAN]

Originally posted by: Krutoy
I recently applied for a credit card, and have been declined. The reason for the decline was because I had a 90 days past due account about a year ago, which I took care of since. Can anyone tell me how long that mark is gonna effect my credit for? Sincere help would be greatly appreciated.

1) Are you 100% certain that's the ONLY reason you were declined?

2) What exactly do you mean you "took care of it" please explain.

3) If you really did "take care of it" do yourself a favor, ask the creditor to send you a letter on their letterhead, listing your name, address and complete credit card number, signed confirming this. Again get this IN WRITING.

4) It usually takes 2 months for credit reports to be updated, so I would wait at least 3 months (6 months is even better) then re-apply.

 

[Vic]

I actually had an all-morning seminar with a credit bureau representative yesterday.
Here's what I can tell you. There is nothing worse for your credit score than a 90 day late. Nothing. We were told and explained that many times when we went over the scoring models. It will only affect your score itself for 2 years, so your score will improve in a year's time. It will remain on your credit report for 7 years.

Check out http://www.myfico.com/


edit: if he was in fact 90 days late on an account, that cannot be removed even if he still has that account and is current with it now. Factual information cannot be removed from credit reports.

 

[StageLeft]

As mentioned if you "took care of" by clearing up the miscommunication with the original cmopany then you need to do what rossman said. If on the other hand you've since paid it it will stay on the report for years. I didn't know that it would affect your score for only 2 years (I believe that inquiries affect it for 12 months, but stay on for 2 years, but they have a different guideline than actual credit items like this).

Why do you want another card at this point? You can get a free report, as conjur mentioned. But, to get real info you need your score. The report will allow you to confirm accuracies in your history, but the score is really what's used by a lender. myfico will hook you up on that.

 

[VictorLazlo]

I was 30 days late on a Capital One card payment (electronic payment made on friday, didn't go through until tuesday because of the weekend and a holiday, thus 31 days late 🙁 )

I explained the situation to a rep, and she told me that the computer notifies the credit agency automatically, and there was nothing they could do to stop it (read: too lazy to help).

How convenient that nobody can be there to process my payment on a holiday, but the computer is there working hard reporting late payments :|

 

[kranky]

Originally posted by: Vic
edit: if he was in fact 90 days late on an account, that cannot be removed even if he still has that account and is current with it now. Factual information cannot be removed from credit reports.

I had a situation when doing a refi a few years ago where Sears had me down for something which was years late (I suppose at some point they just did a writeoff). When I contacted Sears they said they closed my account due to nonpayment. I actually had a Sears account but under a different number. We couldn't figure out what had happened, but they said because I was a good customer they would remove that from my credit report (and they did). Maybe today they wouldn't (or couldn't) do it.

 

[Ogg]

Originally posted by: VictorLazlo

How convenient that nobody can be there to process my payment on a holiday, but the computer is there working hard reporting late payments :|

Yeah thats customer service!!

 

[Budmantom]

Originally posted by: VictorLazlo
I was 30 days late on a Capital One card payment (electronic payment made on friday, didn't go through until tuesday because of the weekend and a holiday, thus 31 days late 🙁 )

I explained the situation to a rep, and she told me that the computer notifies the credit agency automatically, and there was nothing they could do to stop it (read: too lazy to help).

How convenient that nobody can be there to process my payment on a holiday, but the computer is there working hard reporting late payments :|

Was that the first time you were late?

 

[StageLeft]

Originally posted by: Budmantom

Originally posted by: VictorLazlo
I was 30 days late on a Capital One card payment (electronic payment made on friday, didn't go through until tuesday because of the weekend and a holiday, thus 31 days late 🙁 )

I explained the situation to a rep, and she told me that the computer notifies the credit agency automatically, and there was nothing they could do to stop it (read: too lazy to help).

How convenient that nobody can be there to process my payment on a holiday, but the computer is there working hard reporting late payments :|

Was that the first time you were late?

Yeah it sounds like you had this AND a 90 day late elsewhere...?If so your credit score is probably poor.

 

[VictorLazlo]

Originally posted by: Budmantom

Originally posted by: VictorLazlo
I was 30 days late on a Capital One card payment (electronic payment made on friday, didn't go through until tuesday because of the weekend and a holiday, thus 31 days late 🙁 )

I explained the situation to a rep, and she told me that the computer notifies the credit agency automatically, and there was nothing they could do to stop it (read: too lazy to help).

How convenient that nobody can be there to process my payment on a holiday, but the computer is there working hard reporting late payments :|

Was that the first time you were late?

First and last time. I don't care about it any more. This was almost 3 years ago, and I have plenty of credit now, so my plan is to just wait it out.

 

[Krutoy]

Originally posted by: RossMAN

Originally posted by: Krutoy
I recently applied for a credit card, and have been declined. The reason for the decline was because I had a 90 days past due account about a year ago, which I took care of since. Can anyone tell me how long that mark is gonna effect my credit for? Sincere help would be greatly appreciated.

1) Are you 100% certain that's the ONLY reason you were declined?

2) What exactly do you mean you "took care of it" please explain.

3) If you really did "take care of it" do yourself a favor, ask the creditor to send you a letter on their letterhead, listing your name, address and complete credit card number, signed confirming this. Again get this IN WRITING.

4) It usually takes 2 months for credit reports to be updated, so I would wait at least 3 months (6 months is even better) then re-apply.

1) Well thats the reason they gave me for the decline, I know I have some other problems on my credit, like electric collections account which someone else ran out for me.

2) I mean I paid it off, because it was my fault for not paying, I can't really imagine the credit company writing it off my record.

 

[conjur]

Originally posted by: Vic
I actually had an all-morning seminar with a credit bureau representative yesterday.
Here's what I can tell you. There is nothing worse for your credit score than a 90 day late. Nothing. We were told and explained that many times when we went over the scoring models. It will only affect your score itself for 2 years, so your score will improve in a year's time. It will remain on your credit report for 7 years.

Check out http://www.myfico.com/


edit: if he was in fact 90 days late on an account, that cannot be removed even if he still has that account and is current with it now. Factual information cannot be removed from credit reports.

A 120-day late wouldn't be worse?
Collections wouldn't be worse?
Chargeoffs wouldn't be worse?
😕

 

[slycat]

how bad is a REPO on your credit?

...and does it show up in your credit report for sure?

 

[conjur]

Originally posted by: slycat
how bad is a REPO on your credit?

...and does it show up in your credit report for sure?

Pretty bad...esp. if you go to buy another car. What finance company would take a risk? You'd have to put down a chunk of change and pay a high interest rate, most likely.

And, yes, it shows up.

 

[Vic]

Originally posted by: conjur
A 120-day late wouldn't be worse?
Collections wouldn't be worse?
Chargeoffs wouldn't be worse?
😕

All other things being equal, dollar for dollar, they would all have the same effect as a 90 day late. Payment history is 35% of your credit score and anything 90 days late or worse within the last 3 months will lower your score by 35%. The total effect will last for 2 years from the time the payments were caught back up to current, and/or the collection or chargeoff has been paid off.

This has only to do with the credit scoring model itself though and not how lenders perceive your credit. Lending underwriters do see the differences and do care. Their guidelines vary though from lender to lender and program to program.

Check out myfico.com. It's very imformative.

edit: hell yes, a repo shows up. Think of it as many 90 days lates in a row over a long period of time. This is because the lender will usually keep actively reporting the residual balance of the repo (the difference between what you owed and what the lender auctioned the car off for) until you finally make good on it.

 

[SP33Demon]

Anyone know how many points/% your FICO goes up when u pay something off that was delinquent on your credit report? I just paid off like 3 things, and have kept a good revolving balance and my score has gone up about 65 points in the past 2 months... just curious.