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Credit report frustration

damsel. 4,956 374 October 17, 2015 at 06:42 PM
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I did something so stupid and I am really upset. I need a new car soon since my lease is about to expire in December and we're likely buying a house next year.

In June I paid off my Macy's charge balance like always. I ended up getting hit with a $2.00 finance charge. Because I paid off my balance and whatever, I didn't bother checking my statement when it came. Unfortunately, I ended up realizing it after 30 days had elapsed and they put a missed payment on my credit report. I am devastated that my credit score dropped nearly 90 points because of $2.00. I went from a 713 to 627. I've read online about doing goodwill letters and asking them to remove it, but people complain they are really strict and don't generally do it.

I've certainly learned my lesson to not be so lackadaisical. Is there anything else I can do about this? It's making me sick. Frown

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Joined Aug 2006
Permanently banned because serra said so.
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#2
Is the account now marked as "paid in full"? That should help improve it a bit.

If the goodwill adjustment doesn't work, you could always just try disputing the late payment with that credit bureau as inaccurate. Macy's might not even bother verifying the late payment since it's only $2. It's also possible not every credit bureau has the late payment on it, and thus if you find a car/mortgage lender that uses that one your score will be higher.

If all else fails, that late payment will have less and less effect on your credit score as time passes.

You didn't post this in the Lounge so I suppose "show cleavage" isn't a valid response.
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#3
Quote from damsel. View Post :
I need a new car soon since my lease is about to expire in December and we're likely buying a house next year.
Sorry if this is off-topic but it is hardly valid to feel the need to get a new car when the lease is about to expire. If you don't feel the need of switching car once every three years(or less), the credit score decrease would not put you in such stressful situation.

Sometimes people get trapped in the credit score game that they forget they can't afford the things they want. If you chose to lease the car when you have lots of cash, then it is more reason not to care about credit scores and just pay by cash.
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Last edited by teetee1 October 17, 2015 at 10:31 PM
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#4
Quote from teetee1 View Post :
Sorry if this is off-topic but it is hardly valid to feel the need to get a new car when the lease is about to expire. If you don't feel the need of switching car once every three years(or less), the credit score decrease would not put you in such stressful situation.

Sometimes people get trapped in the credit score game that they forget they can't afford the things they want. If you chose to lease the car when you have lots of cash, then it is more reason not to care about credit scores and just pay by cash.
Ah, when I say new car, I mean new to me. My plan is to get a used car this time since I don't do a lot of driving. I got a really good deal on my last lease, but I have only driven 19,000 miles out of 36,000. It was the right decision for me at the time, but this time I'm looking for something different.
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Good things fall apart so better things can fall together heart
#5
You live, you learn. Keep fighting, but if it doesn't help just keep doing what you can to help improve your credit score and just save, save, save. You may not get the best interest rate when you buy your home, but as your credit improves and if rates remain where they have been in recent years you can hopefully refinance in the future.
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#6
Quote from damsel. View Post :
I did something so stupid and I am really upset. I need a new car soon since my lease is about to expire in December and we're likely buying a house next year.

In June I paid off my Macy's charge balance like always. I ended up getting hit with a $2.00 finance charge. Because I paid off my balance and whatever, I didn't bother checking my statement when it came. Unfortunately, I ended up realizing it after 30 days had elapsed and they put a missed payment on my credit report. I am devastated that my credit score dropped nearly 90 points because of $2.00. I went from a 713 to 627. I've read online about doing goodwill letters and asking them to remove it, but people complain they are really strict and don't generally do it.

I've certainly learned my lesson to not be so lackadaisical. Is there anything else I can do about this? It's making me sick. Frown
Our country is just ridiculous MadMad
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#7
Quote from Buckyball60 View Post :
Our country is just ridiculous
Why is it ridiculous to expect responsibility and payment according to the terms a customer agrees to? There are plenty of things ridiculous about our country as well as every other country out there but this isn't one of those things.

No system is perfect and no one saying the credit system is, but this is clearly not ridiculous no matter how you slice it.
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#8
It is ridiculous when the credit score system is worshiped so much that people are giving themselves griefs for not keeping the credit score up. It is one way to evaluate if a person is financially responsible but it should not be the only way.
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#9
Quote from teetee1 View Post :
It is ridiculous when the credit score system is worshiped so much that people are giving themselves griefs for not keeping the credit score up. It is one way to evaluate if a person is financially responsible but it should not be the only way.

People are free to use whatever they want to judge a person's financial responsibility but most choose to use a credit rating because it's extremely accurate. The only thing you really have to do to have decent credit is not screw up. I'm sure there are some people with poor credit who are financially responsible but the majority aren't. Lenders don't have time to go through everyone's life story so they use a credit score which weighs a number factors to determine someone's creditworthiness and risk factor, it's no different than colleges weeding out people by sat score
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#10
Quote from teetee1 View Post :
It is ridiculous when the credit score system is worshiped so much that people are giving themselves griefs for not keeping the credit score up. It is one way to evaluate if a person is financially responsible but it should not be the only way.
You don't have to worship it or go nuts. Just being responsible is going to result in a decent score. It's a very good indicator. Yes it has it's problems. It's a picture at what has been the financial situation for an individual and gives a great indication on the level of risk that individual poses for lending. There are numerous ways to back that up with the data used.

Some people are ridiculous but that doesn't make the credit system ridiculous.

I'm not sure what "other way" a lending institution could use without discrimination lawsuits. The reason a systematic approach is taken is because you cannot favor any group/individual over another -- that is against the law and the credit system provides a level playing field in the eyes of many without regard to the individual circumstances to their credit situation. Newer credit platforms also take into account medical expenses as a much lower hit or no hit at all to credit.

I say it's ridiculous and ludicrous to believe the credit system doesn't work to provide a reasonable assumption of risk. Again, nothing is perfect and the expectation that it should be would be foolish.
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#11
Quote from eekthecat View Post :
Why is it ridiculous to expect responsibility and payment according to the terms a customer agrees to? There are plenty of things ridiculous about our country as well as every other country out there but this isn't one of those things.

No system is perfect and no one saying the credit system is, but this is clearly not ridiculous no matter how you slice it.
First, U.S. credit rating is not system, it's total crap!

Second, it is a matter of commensurability and the system failed. It is obvious that someone has not intent to carry a $2 ballance on an account that he paid in full all the timel. That must trigger an alert with manual review and subsequent end up to contact the customer.

As I said THE SYSTEM FAILED!
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#12
Quote from Buckyball60 View Post :
First, U.S. credit rating is not system, it's total crap!

Second, it is a matter of commensurability and the system failed. It is obvious that someone has not intent to carry a $2 ballance on an account that he paid in full all the timel. That must trigger an alert with manual review and subsequent end up to contact the customer.

As I said THE SYSTEM FAILED!
I disagree but we don't have to agree. The OP paid late firstly, and received a finance charge and then didn't keep up. There are two instances of not being organized to create a single report instance. The amount of money may be swaying to you, and I certainly agree this sucks over $2.00 but the fact remains that it was owed and should've been known as the first payment was late.. It only reported as a single late 30.

Now the original credit score was not all that high to begin with so this is in line with imperfect credit handling. Plus it will come up shortly anyway.

This could have been avoided and should've been avoided if you are going to be upset about the consequences. I believe the system worked, you could argue the degree of working but there wasn't a point of failure within the system.
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#13
The credit system is created totally biased to the financial institutions, evaluating if a person is financially responsible is only a side benefit from this system.

All that it tells you, if you have high credit score, is that you are open to carry debt and is able to pay it back. It excludes people who do not want to carry debt under any circumstances, use cash only, and have no trouble with their finances because they don't put themselves into debt if they cannot afford it in the first place.

You can argue that everyone is doing things in one way (using credits), it is pointless to do things in a different way. Then I can argue that homestead schools produce better results than the common education system that most people follow. Just because the financial institutions steer the general public to do things their way, does not make it the right way.

Then someone will be arguing about being a principled spender and credit card user will not be affected by the greedy banks and will be able to beat them at their own game by all the cashback and free miles with the traveling cards. However this group of people fail to see that they are not the target of the banks, the most or whatever the majority population who live paycheck by paycheck are banks main targets to get their hands into their pockets through interest rates.

At the end, the argument would end in impasse with the two sides having firm belief (and dis-belief) of the system, with the believers being the free-of-charge system defenders while the banks keep sucking money away from those who lack discipline or experience unexpected financial hardships.

This is not a conspiracy theory debate. It's the perspectives between the macro and micro views and how I detest the way banks from scamming people by exploiting their greed and lack of common sense.
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Last edited by teetee1 October 23, 2015 at 11:27 AM
#14
Quote from teetee1 View Post :
The credit system is created totally biased to the financial institutions, evaluating if a person is financially responsible is only a side benefit from this system.

All that it tells you, if you have high credit score, is that you are open to carry debt and is able to pay it back. It excludes people who do not want to carry debt under any circumstances, use cash only, and have no trouble with their finances because they don't put themselves into debt if they cannot afford it in the first place.

You can argue that everyone is doing things in one way (using credits), it is pointless to do things in a different way. Then I can argue that homestead schools produce better results than the common education system that most people follow. Just because the financial institutions steer the general public to do things their way, does not make it the right way.

Then someone will be arguing about being a principled spender and credit card user will not be affected by the greedy banks and will be able to beat them at their own game by all the cashback and free miles with the traveling cards. However this group of people fail to see that they are not the target of the banks, the most or whatever the majority population who live paycheck by paycheck are banks main targets to get their hands into their pockets through interest rates.

At the end, the argument would end in impasse with the two sides having firm belief (and dis-belief) of the system, with the believers being the free-of-charge system defenders while the banks keep sucking money away from those who lack discipline or experience unexpected financial hardships.

This is not a conspiracy theory debate. It's the perspectives between the macro and micro views and how I detest the way banks from scamming people by exploiting their greed and lack of common sense.
The fault to your thinking is that you believe the system is at fault for not knowing what happens outside of it and should just know the credit worthiness of cash users even though they don't have a history to predict upon.
Quote :
It excludes people who do not want to carry debt under any circumstances, use cash only, and have no trouble with their finances because they don't put themselves into debt if they cannot afford it in the first place.
It doesn't exclude them. They exclude themselves. I don't even know how to logistically maneuver around that kind of thinking. If you exclude yourself from a system by using cash you are doing so willfully and know the consequences of doing so.

Your entire post says the banks are to blame and end-users have no responsibility for their habits because the banks pushed them to make the choices they do.

I don't understand your argument other than I understand that you don't like banks.
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#15
I would give it a shot by sending them a goodwill letter and explaining your story to them. It's the best thing you can do at the moment. It wouldn't hurt if you try right?
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