can my credit come back from this....?

Question

i was over 30 days late on my mortgage but i quickly fixed it and i paid off all my credit cards with cash so even though i had a huge downfall, will paying off my cards and continue to make on time payments with my mortage bring my score up a little bit? how long will it take id like to sell and buy a new house next year but if my credit score stays this low i wont be getting anything?! any advice?

Answer 1

A late pay on a mortgage is more costly than a late pay on a credit card.

If all of your credit cards are paid off, DON'T close them, keep them open but don't use, because there's an algorithm on possible credit versus used credit, and if you close the card that algoritm will be thrown off.

If your credit score is low, you've got something more than a late mortgage payment.

Credit and mortgage payments are tracked and part of the score for 36 months, but their relative value in the scoring decreases after 12 months, so you should be better in 6 - 12 months from your problems.

Don't open any new cards, either, not even those depatment store ones with the discount coupons. Don't keep checking your credit score, that impacts score as well.

Answer 2

In addition to what the others are saying...

Did you know that each time you apply for a credit card or a loan and are turned down, that hurts your credit? Also, those "little" high-interest quickie finance/loan companies that people can get a loan from... those hurt your credit.

A banker once told me that when they see a finance company listed on a credit report, (even though every payment was made on time), it negatively affects your credit because it suggests that you were in a bind financially.

So be careful doing that and hopefully your score will come back up quickly.

Good luck!

Answer 3

Check with Mortgage compnay and see if they reported the 30 date, if not plead with them not to and let them know what you are planning on doing(suggest you may do your new loan through them It helps). If they did report the late its going to be there for all to see and most mortgage companies allow 1 or even 2, 30 day lates before you get a higher rate. Check your fico score before you start to bargain with any mortagge company if you have high 600's on up you have allot of bargaining pull. All mortgage compnaies are governed by same laws so pick a Loan officer you like, Check out waht he/she has done in the past and stick with them for your best bet. I'm in the business and you can bargain allot right now cause things are slow...hope that helps!

Sorry for all the typo's I'm talking on the phone!

Answer 4

I agree, don't close the credit card accounts. That will drop your scores.

I would also recommend contacting your mortgage company and explain the reason you were late (it should be a good reason, not - oh I forgot to send it, or I just didn't have the money at the time) Then ask them if they will delete the late. If it was the first time you have been late, they may work with you on it.

Answer 5

As long as you continue to make payments on times very month, then the credit lenders will report that to the credit bureau which will bring your credit up higher. I'd say about six months to a year for your credit to go up, just don't forget to the due date.

Answer 6

Why would your credit score be low based upon a single late payment? I was once 2 months late and it didn't affect my credit.

Answer 7

If you only were late once then it shouldnt affect it that much. The lendors look at how frequently and how often you were late. So if this is a one time occasion it is not that bad.

Answer 8

Talk to the people at www.CreditAvengers.com. They're helping me re-build my credit after a massive bankruptcy and they're amazing at it.

Answer 9

If you don't get behind on your payments, and everything is up and running. Call the Better business Bereu!!!