A Reddit user faced serious credit damage after misunderstanding mortgage payment requirements. Upon removing Private Mortgage Insurance (PMI), he mistakenly reduced his payment amount, which resulted in the bank rejecting it. Consequently, he ended up with eight late payments reported to credit bureaus and a drop of over 100 points in his credit score. The user is now seeking ways to mitigate the negative effect on his credit while contemplating next steps to recover and eventually move as planned.
The Reddit user failed to realize his mortgage payment was rejected due to an incorrect amount, leading to a negative impact on his credit score.
Upon removing PMI, he mistakenly reduced his payment thinking it would decrease, resulting in unpaid dues and a significant drop in his credit score.
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