Credit Repair Advice Needed

bigweather

LoanSafe Member
Greetings,
I am looking to refinance my primary home and found out today that one of my scores is terribly low - 658.
I learned from my refinance agent that I missed a payment on one of my credit cards that I wasn't aware of. The balance was $11 and it went unpaid for over three months. My score has dropped 80 points.

I had thought this card was paid off, but I was wrong. I was on paperless statements, and thinking it was paid off, never went back to check. 4 months later I got a call from Discover stating my bill was overdue and the amount owed was around $13. I paid it off on the spot.

My refinance officer suggested I call Discover and explain that I was unaware previously of the overdue bill, that I otherwise pay all my bills on time ( I do) and that I have been a member with them since 2000. I asked that they please remove late hits to my account so that I can restore my rating. I escalated to two different supervisors and none of them would budge. They said that the error wasn't theirs and that there was nothing they could do. Sorry. $11. I'm incredulous.

What can I do? Is there hope for being able to restore my credit?
Thanks!
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Hi bigweather,
This is something that I see all too often where people forget about a small payment and it damages their credit significantly. Your loan officer did advise you correctly, in order to get back to where you were you were, you need to have Discover say they reported the item in error. It will typically take around 30 days to remove the item from your credit. Ask them to write a letter saying that the items were reported in error. If you can obtain a letter from the creditor saying it was reported in error, we can submit it to the credit reporting agency and do a "rapid re-score" which should bring your credit back up and remove the late for the purposes of a new mortgage.

When calling them you may want to say that you're trying to buy a house and they just damaged your credit which is affecting your ability to do that. Maybe someone will have a heart and help you.

Those missed payments will haunt your credit report for some time, it will be extremely difficult to get back to where you were without removing the late. Keeping balances low to overall credit limits is the best way to increase your credit from what I've seen.
 
Last edited:

bigweather

LoanSafe Member
Thank you Erik for your reply. I will try calling them again. However, they are claiming that since the error was not theirs, they are unwilling to take it off. In fact, they said they couldn't by federal guidelines. I had escalated to two supervisors, but no luck.
So the question is: how do I get Discover to report it as an error when they don't view it as an error on their part?
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
I'm not sure to be completely honest with you. I've had a few clients where the same thing happened. One said oh my gosh I completely forgot (once someone called him) and he said let me go ahead and pay it off AND close the account at the same time. The rep said that no they would rather he keeps it open but they'll remove the late. Another borrower called in and said the same thing, that they had no idea a payment was due and would have paid it right there on the spot. It honestly comes down to an ethical standpoint, a balance of 11.00...that's not fair. Neither of these examples came from a Discover card.
 

bigweather

LoanSafe Member
Thank you Erik.
I tried again and got the same response. They won't do anything and claim they can not. My loan officer's credit department could not do anything either. She gave me the numbers of an attorney and credit repair service she has had luck with. So I will call them and see what they can do and will post back here to let you and others interested know.
I found out today that to refinance with my current score would cost me an additional $12K in fees. All over $11. Unethical indeed!
 

Hopefull2009

LoanSafe Member
Bigweather -- Unfortunately, calling the usual 800 customer service number won't really get you anywhere. You'll need to go onto the site and see who is in the executive office. Try Googling and see if you can come up with an email somehow. If you wrote to the executive office explaining the situation, changes are good they can have the late removed. Just explain honest error, never late, good customer, etc. I've done this before with BoA - took about a week, but I was successful.

Good luck!
 

Hopefull2009

LoanSafe Member
Bigweather -- Unfortunately, calling the usual 800 customer service number won't really get you anywhere. You'll need to go onto the site and see who is in the executive office. Try Googling and see if you can come up with an email somehow. If you wrote to the executive office explaining the situation, changes are good they can have the late removed. Just explain honest error, never late, good customer, etc. I've done this before with BoA - took about a week, but I was successful.

Good luck!
Bigweather -- try this (I don't know if it's still currently, but it should be)

David Nelms, CEO
[email protected]
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Thanks Hopefull for providing some insight, I'm sure bigweather appreciates it. :)
 
Top