I paid my my mortgage late two months in a row. But have been back on track for the last 3. Was hoping my credit score would move back up soon because I noticed from my FICO score it went down quite a bit due to the late mortgage payments. And I have no new credit or anything. Actually paid off 2 credit cards that carried small balance like under $300 for both during that late period.
2007-09-06 09:11:28 · 4 answers · asked by kd 1 in Business & Finance ➔ Credit
It takes 12 months of on time payments to bring your FICO score back up, which is unfair because it should recover at the same rate that it went down at. Unfortunately, the system does not work that way.
Do not only look at the late mortgage payments but also look to see if any of your other creditors made inquiries during that time as well. A "hard" inquiry, i.e. one that shows up on your credit report, reduces your FICO on average 4-7 points per inquiry depending on the creditor requesting the information.
Your FICO score dipped because of the risk assessment made on what you had been late on. If you had been late on the low balance credit cards vs. your mortgage, it would not have dipped the way it did. Credit reporting agencies and the creditors who use their system, rate certain "credit" differently. A mortgage is weighted more than the credit cards because of the level of investment involved.
2007-09-06 09:51:54 · answer #1 · answered by thequeenreigns 7 · 1⤊ 0⤋
It is much harder to bring them up than it is to drop them. I know you said late but in my business I see that people say late but what they mean is didn't make the payment for 2 months. if that is the case you need to get caught up because even if you are making payments on time now you still are 2 months behind and have rolling lates on your credit. It's gonna be a good 6-12 months after you get caught up to get close to where you were before.
You can be up to 15 days late before you start to rack on lates fees and it doesn't report to the credit bureau unless you are 30 days late. If you are going to be late just don't be 30 days late.
2007-09-06 19:11:30 · answer #2 · answered by curse08 3 · 0⤊ 0⤋
around 6 months
2007-09-06 16:18:45 · answer #3 · answered by Xiomy 6 · 0⤊ 0⤋
probably takes longer to recover than it did to go down, maybe 6-12 months to get it back to where it was
2007-09-06 16:18:18 · answer #4 · answered by Anonymous · 1⤊ 0⤋