I want my 5 dollars!!!
December 22, 2005 5:08 PM Subscribe
Credit woes: How bad is 30 days late?
I've paid every bill on time for the last several years, and was finally enjoying very good credit from all three bureaus. Until recently.
On one credit account, I sent in a payment of 6K in order to (what I thought) pay it completely off. Turns out my interest calculation was slightly off, and I left a 5 dollar balance that I didn't notice until yesterday. I quickly sent a payment, and then checked my FICO scores. Sure enough, MBNA reported 30 days late (the missed payment was in October), and my scores plummeted about 30 points (Equifax really dinged me).
Is there anything I can do? MBNA says they can't do anything, and technically it is accurate information, so I'm afraid disputing won't work either. I'm thinking my scores may look bad because it's very recent, but does anyone know if an isolated 30-days-late flag will stay on there for a while?
I've paid every bill on time for the last several years, and was finally enjoying very good credit from all three bureaus. Until recently.
On one credit account, I sent in a payment of 6K in order to (what I thought) pay it completely off. Turns out my interest calculation was slightly off, and I left a 5 dollar balance that I didn't notice until yesterday. I quickly sent a payment, and then checked my FICO scores. Sure enough, MBNA reported 30 days late (the missed payment was in October), and my scores plummeted about 30 points (Equifax really dinged me).
Is there anything I can do? MBNA says they can't do anything, and technically it is accurate information, so I'm afraid disputing won't work either. I'm thinking my scores may look bad because it's very recent, but does anyone know if an isolated 30-days-late flag will stay on there for a while?
Funny, the same thing happened to me last month! Thanks for asking.
posted by k8t at 5:22 PM on December 22, 2005
posted by k8t at 5:22 PM on December 22, 2005
You may be able to work your way up the food chain at MBNA to a reasonable human being who would understand what happened and remove it from your credit report. It may take a while, because this is MBNA, and they are a behemoth, but it could happen. It's only five bucks, and if you had a good history with them previously, I think it would be worth a shot. You may also try sending a letter explaining what happned and asking to have the problem waived. If it doesn't work, it's not the end of the world. It's one 30-days-late. Just paying your bills on time can hike your score 100 points, so all in all it will be okay.
posted by Medieval Maven at 5:47 PM on December 22, 2005
posted by Medieval Maven at 5:47 PM on December 22, 2005
With such a mark on your record, you would surely be Better Off Dead? (Unless it was due to One Crazy Summer...)
posted by benzo8 at 5:54 PM on December 22, 2005
posted by benzo8 at 5:54 PM on December 22, 2005
Response by poster: Thanks, especially to benzo8 for getting the ref :)
posted by surferboy at 5:58 PM on December 22, 2005
posted by surferboy at 5:58 PM on December 22, 2005
Response by poster: The MBNA guy said it would be illegal for them to take accurate information off of my credit report. Not sure if I believe him, but that's as far as I could get.
posted by surferboy at 6:06 PM on December 22, 2005
posted by surferboy at 6:06 PM on December 22, 2005
They really have no reason to take it off your report, as it is accurate information. In my opinion/experience, it's highly unlikely you'll get it removed.
But if your credit is otherwise healthy you should rebound quickly.
You're also allowed to put notes in your credit report. If you feel it's important enough, I'd suggest doing so.
posted by FlamingBore at 6:13 PM on December 22, 2005
But if your credit is otherwise healthy you should rebound quickly.
You're also allowed to put notes in your credit report. If you feel it's important enough, I'd suggest doing so.
posted by FlamingBore at 6:13 PM on December 22, 2005
Here's my anecdotal advice: don't worry about it and continue to maintain a good record. Unless you're currently applying for a major loan, the score right now doesn't mean anything, and as long as your report is accurate, you're ahead of the game (I know how that sounds, but really, inaccuracies are so prevalent these days that accuracy is a virtue, instead of the norm).
If you are applying for loans right now, many banks have the ability to negotiate rates, IF you know what you're talking about. For instance, if you're applying for a mortgage and given your income and down payment you're expecting a 5% interest rate (based on your research of lendees with similar circumstances) and they charge you 6%, you'll know to tell them what happened with that late payment and they can usually "see what they can do".
But from a purely theoretical view (you don't need the score to "work for you" right now), my opinion is to simply not worry about it. Just keep saving and be prepared to have a stash of cash for a future down payment.
posted by SeizeTheDay at 6:16 PM on December 22, 2005
If you are applying for loans right now, many banks have the ability to negotiate rates, IF you know what you're talking about. For instance, if you're applying for a mortgage and given your income and down payment you're expecting a 5% interest rate (based on your research of lendees with similar circumstances) and they charge you 6%, you'll know to tell them what happened with that late payment and they can usually "see what they can do".
But from a purely theoretical view (you don't need the score to "work for you" right now), my opinion is to simply not worry about it. Just keep saving and be prepared to have a stash of cash for a future down payment.
posted by SeizeTheDay at 6:16 PM on December 22, 2005
Yeah, once it's on your record, it's on there.
In the future, if you notice your lateness relatively soon after your due date, call them immediately and ask for a one-time grace, on account of how good you've been in the past. Nine times out of ten, you get it.
posted by deadfather at 6:44 PM on December 22, 2005
In the future, if you notice your lateness relatively soon after your due date, call them immediately and ask for a one-time grace, on account of how good you've been in the past. Nine times out of ten, you get it.
posted by deadfather at 6:44 PM on December 22, 2005
Same thing happened to me a couple months ago. I took about a 40-point hit. Unless you're trying to get a major loan (car, house) don't even worry about it. I've picked up about ten points since it happened, just by paying on time. They ding ya, but as long as there are no chargeoffs or CONSISTENT lates, you should be okay.
posted by TeamBilly at 6:53 PM on December 22, 2005
posted by TeamBilly at 6:53 PM on December 22, 2005
Yeah, once it's on your record, it's on there.
I don't think that's always true, Godfather. We had a big tiff with Honda Finance a few years ago (car was totalled and insurance company was v slow with the payoff). They reported us 60 days late, but once the loan was paid off I was able to convince a nice person (not even too far up the line even, to have the ding removed) and it was.
So, in theory at least, MBNA does have the ability to take it off. If you're a good customer otherwise, you can threaten to close your account and they'll do just about anything you want.
posted by SashaPT at 6:55 PM on December 22, 2005
I don't think that's always true, Godfather. We had a big tiff with Honda Finance a few years ago (car was totalled and insurance company was v slow with the payoff). They reported us 60 days late, but once the loan was paid off I was able to convince a nice person (not even too far up the line even, to have the ding removed) and it was.
So, in theory at least, MBNA does have the ability to take it off. If you're a good customer otherwise, you can threaten to close your account and they'll do just about anything you want.
posted by SashaPT at 6:55 PM on December 22, 2005
don't worry about it and continue to maintain a good record. Unless you're currently applying for a major loan, the score right now doesn't mean anything
Took the words right out of my mouth.
posted by frogan at 11:18 PM on December 22, 2005
Took the words right out of my mouth.
posted by frogan at 11:18 PM on December 22, 2005
Yeah, I had a situation a few years ago where I went through a very chaotic move, got a new job, etc, which basically relieved me from being completely dirt poor. I missed a bill from a credit card, and since my previous worse-than-paycheck-to-paycheck existence meant that I'd been late a couple of times already, they put me into collection. I wrote a very polite letter to explain what had happened, and told them I'd make payments of X amount (which was about four times the minimum) for X amount of time, and could they please forget that I'd made this mistake? And magically, they did. So it's not impossible.
posted by Medieval Maven at 3:52 AM on December 23, 2005
posted by Medieval Maven at 3:52 AM on December 23, 2005
The MBNA guy said it would be illegal for them to take accurate information off of my credit report.
This is not true. All the information banks report to the credit bureaus must be accurate, but that doesn't mean they must report everything, and they have considerable leeway in how they report. In the event of a settlement, for example, banks are sometimes willing to include a notation of "pays as agreed" rather than "account settled" (the latter being a major ding) -- since they have "agreed" to accept your settlement, "pays as agreed" is technically correct ("the best kind of correct!").
Practically speaking, the only time a bank gets in trouble for inaccurate information is if a debtor challenges it, which you are unlikely do to in the case of an "error" in your favor. Even when you challenge a derogatory error, there's not going to be any consequence so long as they correct it in a timely fashion.
posted by kindall at 9:07 AM on December 23, 2005
This is not true. All the information banks report to the credit bureaus must be accurate, but that doesn't mean they must report everything, and they have considerable leeway in how they report. In the event of a settlement, for example, banks are sometimes willing to include a notation of "pays as agreed" rather than "account settled" (the latter being a major ding) -- since they have "agreed" to accept your settlement, "pays as agreed" is technically correct ("the best kind of correct!").
Practically speaking, the only time a bank gets in trouble for inaccurate information is if a debtor challenges it, which you are unlikely do to in the case of an "error" in your favor. Even when you challenge a derogatory error, there's not going to be any consequence so long as they correct it in a timely fashion.
posted by kindall at 9:07 AM on December 23, 2005
Yeah, you got the stock answer from someone who didn't have the power to do anything for you anyway. Yes, the law says all reported information must be accurate but there's 2 things the grunts don't grasp there:
1) things have to be accurate when they are reported, but they don't have to be reported. This is pretty irrelevant when dealing with an MBNA type but with collections agencies etc it's very pertinent - pay-for-deletion (you can do your own reading at the above Art of Credit link) is common and happens all the time. You don't want to be de-listed anyway, you want reporting but more flattering
2) What makes that data accurate is in many ways up to the consumer and creditor, particularly when the issue of 'late' comes up. They can decide, after all, that you weren't late, or that the amount was wrong, or any number of things.
You problem likely is going to be that MBNA has little motivation to placate you - apparently you took your ball and went home, at least from their perspective. Paying them off is BAD from their perspective. If you kept the account open you have more leverage - call back and ask if they have a customer retention specialist and express your dissapointment. Many companies allow a single exception a year and they're more motivated to do it for you if you're going to bail out on them.
Just keep calling till you get what you want. After all, what's the downside? You're told no? Rejection is a part of life :)
Don't let the fact that you really were late keep you from disputing either. You can dispute based on the idea that the amount WAS sufficient so you weren't late. It's unlikely it'll get you anywhere but again, what do you have to lose? AoC will provide you with ways to beat them up on the dispute front.
posted by phearlez at 12:02 PM on December 24, 2005
1) things have to be accurate when they are reported, but they don't have to be reported. This is pretty irrelevant when dealing with an MBNA type but with collections agencies etc it's very pertinent - pay-for-deletion (you can do your own reading at the above Art of Credit link) is common and happens all the time. You don't want to be de-listed anyway, you want reporting but more flattering
2) What makes that data accurate is in many ways up to the consumer and creditor, particularly when the issue of 'late' comes up. They can decide, after all, that you weren't late, or that the amount was wrong, or any number of things.
You problem likely is going to be that MBNA has little motivation to placate you - apparently you took your ball and went home, at least from their perspective. Paying them off is BAD from their perspective. If you kept the account open you have more leverage - call back and ask if they have a customer retention specialist and express your dissapointment. Many companies allow a single exception a year and they're more motivated to do it for you if you're going to bail out on them.
Just keep calling till you get what you want. After all, what's the downside? You're told no? Rejection is a part of life :)
Don't let the fact that you really were late keep you from disputing either. You can dispute based on the idea that the amount WAS sufficient so you weren't late. It's unlikely it'll get you anywhere but again, what do you have to lose? AoC will provide you with ways to beat them up on the dispute front.
posted by phearlez at 12:02 PM on December 24, 2005
This thread is closed to new comments.
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posted by trevyn at 5:16 PM on December 22, 2005