19 point drop... Why?

[Ktwilson227]

Hi Everyone,

So my paid Verizon collection finally updated to show a zero balance. I got a nice 10 and 15 point boost from EX and TU which was great. Then... wait for it.. Score Alert... Dropped my EQ from 592 to 573... **bleep** was my initial reaction, but even after I have calmed myself down I still can't figure out why my score would drop 19 points? Does anyone have any advice/words of wisdom as to why it dropped? Score watch says nothing useful, no new negative info has been added. Why do the credit gods hate me so?!

Thanks for listening.

[pizzadude]

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@Ktwilson227 wrote:

Hi Everyone,

So my paid Verizon collection finally updated to show a zero balance. I got a nice 10 and 15 point boost from EX and TU which was great. Then... wait for it.. Score Alert... Dropped my EQ from 592 to 573... **bleep** was my initial reaction, but even after I have calmed myself down I still can't figure out why my score would drop 19 points? Does anyone have any advice/words of wisdom as to why it dropped? Score watch says nothing useful, no new negative info has been added. Why do the credit gods hate me so?!

Thanks for listening.

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Paying collections will never help your FICO score, and often will lower it unfortunately, if the collection is made to appear more recent as a result of the update.

[Ktwilson227]

So since it was showing as a collection, once I paid it and zero'd the balance it dinged me again for being in collections? Even though that lowered my overall DTI ratio?

[pizzadude]

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@Ktwilson227 wrote:

So since it was showing as a collection, once I paid it and zero'd the balance it dinged me again for being in collections? Even though that lowered my overall DTI ratio?

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Yep, that's pretty much it unfortunately.  Unless you can negotiate a PFD, your FICO score will often take a hit when paying collections.

[lmfields84]

+1