Recent late payment will plummet your credit scores

Late Payments

Recent Late Payments

Your credit report and your credit scores is the most important factor that creditors will evaluate when you apply for credit.  A recent late payment will plummet your credit scores by more than 80 points or more.  The higher your credit score, the more of an impact it will have.  If you barely qualify for a mortgage loan with your current credit score, a recent late payment will instantly disqualify you for the mortgage loan.  If you have a recent late payment and are or were planning on applying for a residential mortgage loan, you need to somehow correct the recent late payment and try to have it deleted or removed or you need to wait out the time until your credit scores improves again.

Contact your creditor who has reported you late and plead with them to remove it

If you had the credit account for some time and had a good payment history with the creditor but just got that one recent late payment, contact your creditor and see if you can have them remove it.  Most creditors will give you a one time reprieve and as a courtesy will remove the recent late payment off your credit report.  If you have had previous late payments, the creditor will probably give you a hard time and fight you in not removing the late payment.  I would try to have it removed and if the creditor will not, ask to speak to a supervisor and plead with the supervisor.  If you have no luck with the supervisor, the only other means you have is to try to dispute it to the credit reporting agencies or get more positive credit to offset the negative late payment history.

Credit disputes are not allowed during the mortgage application process

A recent late payment will definitely drop your credit scores and can delay your mortgage application process.  If the creditor is not willing to remove your recent late payment off your credit record, your other choice is to wait out the late payment with time.  As time passes, your late payment will have less and less impact on your credit scores.  It might take as long as six months for your credit scores to start improving again.  Another option you have is to get the late payment record deleted by contesting it with the credit bureaus.  Again, this takes time and your mortgage application process will come to a halt because credit disputes are not allowed during the mortgage application process.

Secured Credit Cards To Improve Your Credit Scores

A great option to offset the late payment and boost your credit scores is by getting several secured credit cards.  The positive impact the secured credit cards will have will offset the negative impact the late payment has caused on your credit scores.  Get three secured credit cards.  We highly recommend that you go to and order your secured credit cards.  All secured credit cards at report to all three major credit reporting agencies.

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The information contained on Gustan Cho Associates website is for informational purposes only and is not an advertisement for products offered by The Gustan Cho Team @ Gustan Cho Associates or its affiliates. The views and opinions expressed herein are those of the author and/or guest writers of Gustan Cho Associates Mortgage & Real Estate Information Resource Center website and do not reflect the policy of Gustan Cho Associates Lenders Network, its officers, subsidiaries, parent, or affiliates.

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