Credit score lowered by 50 points

Submitted by Anonymous (not verified) on Thu, 05/13/2010 - 04:00
Forums

Hi,

I have been waiting for a year now to buy a house. I've been approved by underwriting. In April I paid a land loan on-line through my bank. I've done it before too. I posted it for paid on 4/23, no later than 4/26. I checked on 4/30 and am sure enough it had been paid on 4/26. A week later I got a my FICO alert that my credit score decreased. I checked my credit report and they were reporting my loan as 30 days late with a 50 point hit!!!!! I called the bank and they said that even though it had been debited from my account on 4/26, the payment didn't reach my loan bank until after 5/1 so they reported it as 30 days late!! Luckily my loan has been through underwriting and my broker has checked my credit but I was planning on applying for a pool loan.

I've just sent three dispute letters to the CRA's including the statement showing the funds were withdrawn on 4/26, I've also called the bank. They said they'd work on it and see what they could do but I thought I'd get some ideas from you as well.

Hi Young,

The lender cannot report this as a 30 day late. If you had posted on 4/23, and it got paid on 4/26, then he can't report it as a late account. Can you tell when was the due date? If the due date was before 5/1, then the lender can charge late fees, but aren't supposed to report it as a 30 day late. If you can show proof that you had paid much before the due date, you may be able to dispute this late reporting.

Thanks,

Aaron

Thu, 05/13/2010 - 05:41 Permalink