Late payments on business cc... how will it affect FICO?

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daveinla
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Late payments on business cc... how will it affect FICO?

Postby daveinla » Mon Jul 20, 2015 3:50 am

I have a US Bank Club Carlson business credit card that I use rarely for pretty much just some hotel stays. I stayed at a Radisson on 5/14/15 and then had a change of address around that time. I completely forgot about that charge, all all statements and late payment reminders were sent to an old address that didn't forward to my current address. I just got a pile of mail from that address today and was notified of my late payment. I quickly called USB and was able to reverse the late charges and paid off the balance ($145), but the rep notified me that payments more than 30 days late are reported to the credit bureau. This is a business card, but he and a supervisor notified me that this would negatively impact my personal credit score as well. I just checked my CK scores, and they're both around 800 and don't have any negative marks. USB told me that they report to the credit bureaus once per month, but they didn't know what date that would be. Since my score is still intact, I assume that this date hasn't come yet. They can't remove that mark from my account. What's next? It was a supervisor who told me that this late payment on a business card would negatively affect my personal score... is she necessarily correct? I applied for the card with my SSN (no EIN).

Also, I typically apply for a lot of credit cards to get airline miles and hotel points. I have (had?) excellent credit my whole adult life. Will 1 single late payment pretty much put me out of commission with regard to credit card applications?


whit
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Re: Late payments on business cc... how will it affect FICO?

Postby whit » Mon Jul 20, 2015 8:12 pm

I would call back and speak with another rep; most doesn't tend to read the comments (if any is placed) so you can just ask as if you didn't already.

I suspect, whether you had applied with ssn or EIN that it would affect your score personally because while business cards don't really contribute to your credit file (which can be beneficial if your business is going through cash flow issues and therefore carrying high balance near the limit..it wouldn't show on your personal record)

However if you default (be late over 30 days) or all together bankrupt; than it would.

No business credit is not based on a personal guarantee even if you run through 7 figures in deposits, unless you're a huge corporation like Gap, inc.

When you call back, you have to see if there's a way to spin it which is pretty hard. I will play devil advocate and hopefully that would better prepare you for the convo.

----You say you had moved, but don't you have online access? Wouldn't you know that there's going to be a payment due at least within 30 days of when you had used the card?----

Banks would almost never, and I say never because I successfully helped one person get the mark removed, but it was very isolated incident and to this day I still don't understand 100% how it happened since it wasn't a bank error but I'm not the grinch, obviously if it can be done I would want it done.

I would also recommend for anyone who hasn't already, to do autopay for minimum amount due because 1) guarantees as long as you have that amount in your bank on due date, that you'll never be late.

2) if you pay in full before due date they will not take out the minimum, so really if you're already paying in full you can continue to do so with the autopay for minimum amount due as safety net.

3) even if you don't pay in full but would like to control in amounts what you pay, you can always take the amount you plan (say 800, and subtract what the usual minimum is 15/20/25/etc so it's 785/780/775/etc) so you still pay as much as you want, but have the safety net.

And if you only pay the minimum (thanks to autopay) because you didn't realize you had a bill due, because you don't receive statements because the address is an old one and the card tied to that account looks a lot like another card you regularly use..and therefore didn't think to log online to see the statement..because you didn't even realize you used that card..

So you missed paying altogether yourself, but autopay saved you a late fee and possible mark on your report (nearly impossible if not altogether Impossible to get rid of)

And you're only stuck with the apr charge which shouldn't be too high, esp in your situation of a hundred something..I don't think they do interest apr on late fee charge itself right? :ppp

So yeah, long story short, everyone should be on auto for minimum unless your super anal about checking your cc account every day and only carry less than a handful of cards..

takeshi
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Re: Late payments on business cc... how will it affect FICO?

Postby takeshi » Tue Jul 21, 2015 3:06 pm

daveinla wrote:It was a supervisor who told me that this late payment on a business card would negatively affect my personal score... is she necessarily correct? I applied for the card with my SSN (no EIN).

Yup. While personally guaranteed business cards generally don't report to personal credit reports they will if delinquent.

daveinla wrote:Also, I typically apply for a lot of credit cards to get airline miles and hotel points. I have (had?) excellent credit my whole adult life. Will 1 single late payment pretty much put me out of commission with regard to credit card applications?

No idea but derogs tend to have a significant impact and hold scores down as long as they report. You would be better off without a derog on your reports but exactly how much is difficult to say.

whit wrote:So yeah, long story short, everyone should be on auto for minimum unless your super anal about checking your cc account every day and only carry less than a handful of cards..

I don't do either and I don't use autopay. I just schedule payments that get paid out of each paycheck when the funds are available. As you said in another thread, no one way is best. Each needs to do what works for the individual. I'd suggest autopay for those that find it useful but I wouldn't say "everyone should".

whit
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Re: Late payments on business cc... how will it affect FICO?

Postby whit » Tue Jul 21, 2015 3:30 pm

takeshi wrote:
daveinla wrote:It was a supervisor who told me that this late payment on a business card would negatively affect my personal score... is she necessarily correct? I applied for the card with my SSN (no EIN).

Yup. While personally guaranteed business cards generally don't report to personal credit reports they will if delinquent.

daveinla wrote:Also, I typically apply for a lot of credit cards to get airline miles and hotel points. I have (had?) excellent credit my whole adult life. Will 1 single late payment pretty much put me out of commission with regard to credit card applications?

No idea but derogs tend to have a significant impact and hold scores down as long as they report. You would be better off without a derog on your reports but exactly how much is difficult to say.

whit wrote:So yeah, long story short, everyone should be on auto for minimum unless your super anal about checking your cc account every day and only carry less than a handful of cards..

I don't do either and I don't use autopay. I just schedule payments that get paid out of each paycheck when the funds are available. As you said in another thread, no one way is best. Each needs to do what works for the individual. I'd suggest autopay for those that find it useful but I wouldn't say "everyone should".


Heh good catch

I didnt go back and change it but I did see that too, me myself I'm that anal person that would check it everyday or other day but, essentially whatever system works as long as it works..I totally agree with you in that aspect

I've just seen a lot of folks who has had their system break and by then it's too late

daveinla
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Re: Late payments on business cc... how will it affect FICO?

Postby daveinla » Tue Jul 21, 2015 3:41 pm

I just called USB again and the CSR who answered insisted that USB doesn't report to credit bureaus until payment is late for 60 days. I mentioned someone else told me 30, and he was absolutely sure that only applied to personal accounts. Should I just be content with this, or try calling another rep to convince him/her to not report it? I've heard that USB reports at the beginning of the month, and the CSR I spoke to said that if USB were to report at 30 days, they would've done it already. Is he wrong? Or could I be lucky regarding the 60 days for business accounts?

daveinla
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Re: Late payments on business cc... how will it affect FICO?

Postby daveinla » Tue Jul 21, 2015 4:10 pm

ONe more thing-- I found this when searching online.
http://thepointsguy.com/2013/07/how-can ... e-payment/

A reader to this guy's blog was in the same situation as me-- same card, roughly same number of days late. He called and was told 90 days for business credit cards. I did more searching and kept on getting conflicting info. My original due date was 6/16.

daveinla
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Re: Late payments on business cc... how will it affect FICO?

Postby daveinla » Wed Jul 22, 2015 1:49 pm

I called again and this agent agreed with the first-- no report is sent to bureaus for my personal credit until 60 days. BUT she said that USB will report to Dun & Bradstreet for my business credit report. I applied for this business card with my SSN (I don't have EIN), so I was worried that D&B would send the info to the major credit bureaus for my personal score. The agent said that, as far as she knew, they didn't do this. Again, I tried searching online and can't find anything specific about this. I see that personal credit can affect business credit, but don't see anything about the reverse.



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