HUSBAND'S SCORE TANKED 18 POINTS AFTER PAYING OLD COLLECTION!!!!! :(

[cocomadd]

Our LO told us that my husband's old Kohl's charge off had to be paid for Mortgage Loan approval, and now that the payment finally posted to EQ, his score tanked 18 POINTS!!!!!!  Why is EQ so unfair!!???  Does anyone out there know if this is temporary and score will start going up?  We need to have it at least at 640 by August 15th or so and right know it's only at 601!!!!  I believe his other scores are 641 and 670, but not completely sure....I do not want to pay to get the new scores yet until everthing is posted and updated.  BUT, I need to know if anyone out there has had a similar issue and how long it took to repair??

Thanks.

[pizzadude]

Paying a collection will never raise your FICO score ~ and unfortunately sometimes it will lower your score.

It's just speculation to guess how long it will take your score to recover, but it will probably take more than a few months.

[Mondavi]

Welcome to the flawed scoring system known as FICO. When a collection account has had no activity on it for some time and then is paid or updated FICO looks at it being a newer collection account. Thus why you saw a score drop.

Your LO should have known this. They could have pulled you credit and went with that score. Then told you as a required condition you would have to pay this account before you could close. Then before you close they should have done a soft pull to see the account had been paid.

There is a few things you can try to do now. Write a GW letter to Kohl's and explain what is going on. Maybe you could get lucky and they would remove the account.

The only other thing I could think of is if you want me to PM you a number at EQ that could help you. I know for sure first hand that if a "certain person is feeling nice" they will remove all the late payments from that account.

I also assume all your scores are EQ Fico as well?

[chasmith]

Remember they will go by the "mid-score" so if EQ is your lowest it will be ignored.

[swtneka]

I would call Kohl's and ask if they would delete or send the a GW letter explaining... Remember to be sincere

[cocomadd]

Thank you for your response Mondavi!  I would appreciate it if you could provide me with the EQ number to get this resolved....It will help us so much!  And yes they are FICO scores. 

Thanks again!

[ktm214]

Mondavi, can I get that too, please.

[cocomadd]

When we paid the bill with Kohls initially and asked for the PTD they scoffed at us and said they do not do that.  Kohl's billing is Cap 1 now, so they could care less.  I migght convince my husband to write the GW letter now that the payment is posted to see what they will do, but I am not holding my breath.  We are waiting until Tuesday to call the other CA TU and EX to see if payment posted there as well then we will pull those scores, if they are over 640 each then we will ignore the EQ score.  Either way we slice or dice it we have to wait and pray the scores will be up by application time....we dont want to lose this house!

I will keep you all posted.