I spent $15k with my Fifth Third credit card this month. I was a little concerned because my limit is $21k, but I figured it would be okay because I always pay off my card in full. I have autopay set up to pay the statement balance on the due date.
Well, for the first time, autopay failed me; it only paid the minimum amount, not the statement balance. I noticed it 3 days after the due date, so I quickly manually submitted a payment for the rest. But my FICO credit score got dinged, and it dropped by 70 points.
What recourse do I have? Will my credit score recover?
Autopay failed and my credit score took a hit
byu/Pantacourt inCreditCards
Posted by Pantacourt
2 Comments
Paying the minimum means “pays as agreed” in credit score terms. The score drop is probably due to the large balance reported (i.e. utilization), which has no memory and yes will recover completely.
Sorry you had to pay a few days’ interest though, that’s annoying.
Paying the minimum doesn’t directly affect your score. If you noticed and paid in full after 3 days, that didn’t affect your score either because they must be 30+ days late for any derogatory scoring impact. Technically, you weren’t even late at all.
Nothing you described would affect your score at all, never mind to the level of 70 points.
The “effect” you saw was entirely coincidental timing. You charged a much higher amount this month and pushed up to about 75% of your limit. That high utilization dropped your score for this reporting cycle. I assume you have a thin credit file to see that much of an impact.
Utilization has no memory and does not affect scoring past the current month. Your score will bounce back when the lower balance is reported next month.
You have zero recourse from a “failed” autopay because it’s still entirely your responsibility to pay the lender on time. ~~You’ll get dinged with a late fee (though you can request a goodwill waiver, which usually works if you’re an otherwise good customer)~~ and you’ll owe forward interest on future purchases for the next ~two reporting cycles due to the revocation of your grace period.
Edit: never mind on the late fee because autopay paid the minimum. I clearly can’t read. The trailing interest still applies though.