General Credit Topics

[faiths13]

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?

[pizzadude]

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 ?

[faiths13]

Im not sure waht GW means?

[pizzadude]

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faiths13 wrote:

Im not sure waht GW means?

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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.

[faiths13]

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

[pizzadude]

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