One missed payment (30 days late) can devastate your credit score. The better credit you have, the more points are docked for one mistake.
For example, one missed credit card payment can deduct 100 points off of a perfect credit file. It can deduct 70 to 90 points if your credit is A-. If you already have subprime credit, then another missed payment can deduct 35 to 50 points, depending on your overall credit profile.
Below is an illustration* of how one missed payment can hurt your credit score. Clearly, we all need to stay on top of our credit reports to make sure an error is not posted against us.
30 Days Late Points Off Prime Pts Off Subprime
Credit card 70 to 90 points 35 to 50 points
Car loan 65 to 85 points 40 to 60 points
Mortgage 85 to 100 points 20 to 40 points
60 Days Late Points Off Prime Pts Off Subprime
Credit card 80 to 100 points 40 to 55 points
Car loan 80 to 100 points 40 to 70 points
Mortgage 100 to 120 points 30 to 50 points
Charge-Off 90 to 130 points 45 to 65 points
Collection 100 to 150 points 50 to 80 points
The first step to managing your credit report is to request your free annual credit report by good old-fashioned USPS mail. Don’t be lazy and order your credit report online or you will be giving up some of your legal rights and make it more difficult to get errors corrected. Send your letter to:
Annual Credit Report Request Service
PO Box 105281
Atlanta, GA 30348-5281
If you need credit restoration and cannot afford or choose not to pay for a professional service, do yourself a favor and pick up a copy of the Expanded Edition of Repair Your Credit Like the Pros here. (You want the newest edition, that says “Expanded Edition” under the title, not the old 2015 book.)
* Chart based on data provided by myFICO