Charge off Paid BUT>>> FICO DOWN

[ethelrose]

Good Day fellow Boardies. I have a huge problem. I just paid off a Charged off  Navy Federal account in the amount of $416.00, but instead of getting a boost in my credit score, my equifax score just went down 13 points. This account  was charged off in early 2009.  I paid it  few weeks back and it just showed up as paid on my account today. August 26th. I am totally confused.

Please help!

[MarineVietVet]

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@ethelrose wrote:

Good Day fellow Boardies. I have a huge problem. I just paid off a Charged off  Navy Federal account in the amount of $416.00, but instead of getting a boost in my credit score, my equifax score just went down 13 points. This account  was charged off in early 2009.  I paid it  few weeks back and it just showed up as paid on my account today. August 26th. I am totally confused.

Please help!

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First of all a CO is scored the same whether it is paid or unpaid. If this was this the first activity shown on this account since it was charged off that might have updated the account and made it appear more recent which will drop your score. It could also be that something else has changed on your reports at the same time but updating could be the answer.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work

[ethelrose]

wow! so you are saying that it might have been worst that I actually paid this Charge Off?

[Shane1]

From a FICO standpoint, you're ultimately about in the same boat as you were before. The debt's behind you and you shouldn't get sued over it, but unless you negotiate deletion, paying isn't a way in which to improve score.

[fused]

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@ethelrose wrote:

wow! so you are saying that it might have been worst that I actually paid this Charge Off?

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What happened to you is quite common when paying a baddie on your EQ report. Like Marine said, the DOLA (date of last activity) on this CO changed to a more recent date when you paid it, thus the hit to your EQ score. Its irritating!!!!!

[MarineVietVet]

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@ethelrose wrote:

wow! so you are saying that it might have been worst that I actually paid this Charge Off?

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It does happen like that sometimes but on the bright side you never have to worry about anyone else trying to collect on this debt in the future.

Does that help at all? 

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800
TU - 8/10-772
You can do the same thing with hard work

[ethelrose]

Thanks for the responses. I will be forever confused with the fico process.  I should have spent that $400 to pay down on my credit card and simply forget about the charge off for now. Ahhh welll..