Ouch I Missed a Payment

Ouch, I missed a payment, now what do I do?

My first thought was pay off the credit card and cancel it.  This does not help, your missed payment will stay on your credit report for seven years.  The lender will have no incentive to delete the missed payment.  Over time the impact of the missed payment will become smaller but you will never make it over an 800 credit score with a missed payment in your history. 

My favorite solution to a Missed Payment

I have used this with my Lowes card and my friends have used on other credit cards also.

• Do not cancel the card.  Make the missed payment and make the payments on time.  If the card has not been cancelled spend a little more on the card and make the payments on time.

• Call customer service and apologise and tell them you have sent the payment.  Be very nice.    

• After six months of making your payments on time call customer service.  Apologize for missing the payment.  Be very nice to the customer service.

• Tell them you are looking at cars, or working on your credit.  Ask them if they can help you by deleting the missed payment.

• If they do not or can not remove the missed payment continue on.  Use the card a little bit and always make the payment on time.  After another three months try again.  I would try every three months until they removed the missed payment.

Dealing with Customer Service at your Bank or Credit Card

The first Rule of dealing with Customer Service is  Always be nice.  These people have a tough job.  Many people do not accept responsibility for a missed payment and blame it on the bank, their wife, the weather, whatever.  Many people are just plain Mean to customer service.  Be a bright spot in their day.  

Your History with Customer Service

When you deal with Customer Service at your bank or credit card they keep track of the interaction.  If you are a jerk they will make a note of it and the next time you talk to customer service they will see that note on your account.  Always be nice.

My Lowe’s credit card missed payment.

I had one of those forgetful moments.  I did not setup my Lowes card on autopay.  They would not let me set it up online or on the phone.  They wanted me to set it up with snail mail.   Anyway I charged something small on my card and forgot.  I received the bill but did not open it.  I discovered I had missed a payment when it showed up on my Credit Karma report.    Ouch, it knocked sixty points off my score.  

I did not close the account, I drove directly to Lowes and made the payment.  The next day I called Lowe’s credit card division and made sure they had gotten the payment.  I explained how stupid I felt for having missed the payment.  

Next I bought a few more things on my Lowes card.  I made sure to make the payments on time.  After 5 months I called up Lowes Credit and gently asked them if they could remove the missed payment.  I told her I was looking at new cars.  (I was looking but not to buy, grin.)  Anyway she said she would need to talk to her supervisor and could I hold on for a minute.

Missed Payment Removed

She came back and said it was already removed.  I thanked her profusely and hoped she had a nice weekend.  

My credit score had already recovered 30 points from the 60 point hit in the five months from my late payment.  A week later the missed payment disappeared from my credit report.  My score jumped to a couple of points higher than it had been when I missed the payment.

Do not Close the Account with the Missed Payment

If I had closed the Lowes account the missed payment would have stayed on my account for seven years.  A company you no longer have a credit relationship with will not delete a reported missed payment.  

Moral of the story, do not miss payments, be very nice to customer service agents they will help you if they can.