topic Re: Paid Off Collection, Score Went Down in General Credit Topics

Paid Off Collection, Score Went Down

faiths13 — Mon, 07 Jan 2013 23:48:19 GMT

We paid off a collection from a Utility Co and now my husbands score has gone down ALOT. LIke 30 points. I have heard that paying of debts can make your score go down but didnt expect this. Is this something that is going to stay down, or is it going to go back up? Is there something we can do to make the score go up?

Re: Paid Off Collection, Score Went Down

pizzadude — Tue, 08 Jan 2013 00:17:02 GMT

In some cases I believe that yes, paying a collection can lower your FICO score. I think it has something to do with one of the dates being updated to make the collection appear more recent.

Have you asked them to GW remove the collection ?

Re: Paid Off Collection, Score Went Down

faiths13 — Tue, 08 Jan 2013 00:28:33 GMT

Im not sure waht GW means?

Re: Paid Off Collection, Score Went Down

pizzadude — Tue, 08 Jan 2013 00:30:24 GMT

faiths13 wrote:
Im not sure waht GW means?

GW is Goodwill. It is a request to a creditor to remove derogatory information, such as late payments, collections, charge-offs, from your credit reports.

Re: Paid Off Collection, Score Went Down

faiths13 — Tue, 08 Jan 2013 00:32:31 GMT

No we didnt. I will try to see if they will, but now that we paid they prob wont care.

Re: Paid Off Collection, Score Went Down

pizzadude — Tue, 08 Jan 2013 00:37:32 GMT

GW success varies by creditors. You have nothing to lose by trying. And if they say no you can always try again.