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Contributor
fairclok
Posts: 79
Registered: ‎10-03-2012
0

A little confused. Cleaning up credit report and decrease in Fico Score

Hi all.

 

I've been doing the Fitness Challenge and have made great strides so far.    See signature below.     These forums have been the main reason I have been able to rebuild my credit.

 

That said, I received 2 MyFico Alerts today that I don't 100% understand.    

 

I sent a letter to one of my creditors requesting information on my closed account from November of 2007, which I paid in full to the creditor, not a collection agency.

 

My score has dropped 10 points.    Its seems the creditor is reporting the item worse than before.

 

Can someone help me understand this and what I should do to fix this?

 

This is how it reported prior.

 

 

 

Balance [?] Current Status [?]
$0Pays account as agreed

Seven year payment history [?]

30 days late 60 days late 90+ days late
4 times
6 times (Sep 2007, Aug 2007, Jun 2007)
6 times (Oct 2007, Jul 2007, Mar 2007)

   

 

i then received these 2 alerts today (same day)

 

Account opened: 7/1996

Description:Closed or Paid Account/Zero Balance Credit card Amount in H/C column is credit limit
 Previously reportedNewly reported
Balance:$0 
Past due:$0$0
Status:Pays account as agreedPays account as agreed
Last activity:5/1/20075/1/2007
Description:Consumer disputes - reinvestigation in process Amount in H/C column is credit limit

Closed or Paid Account/Zero Balance Credit card Amount in H/C column is credit limit

 

 

 

Account opened: 7/1996

Description:Closed or Paid Account/Zero Balance Credit card Amount in H/C column is credit limit
 Previously reportedNewly reported
Balance:$0 
Past due:$0$0
Status:Pays account as agreedNot more than four payments past due
Last activity:5/1/20075/1/2007

 

 

Now it is reporting as:

 

Balance [?] Current Status [?]
$090 days past due

Seven year payment history [?]

30 days late 60 days late 90+ days late
3 times
6 times (Sep 2007)
6 times (Oct 2007, Mar 2007)

Worst Delinquency [?]

120+ days past due
 
 
Thanks

Starting Score: Sept. 2012 EX FAKO 601; EQ FICO 603; TU FICO 607
Current Score: Feb 2014 EX FICO 749; EQ FICO 744; TU FICO 763
Goal Score: 760 on all 3


Take the FICO Fitness Challenge

Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

Re: A little confused. Cleaning up credit report and decrease in Fico Score

Are the two alerts for the same account? Or if the same, are the alert dates exactly the same?

 

The first alert is clear. There was a dispute initiated on the account and it cleared. It was the clearing of the dispute comment that triggered the alert and the score change. Thankfully the damage is minor. I would have guessed a much bigger loss, though there are other factors at play. Per FICO scoring, when an account is disputed FICO will ignore the payment history. So, the damage was there before but FICO ignored it. Then the comment cleared and the points went away again.

 

When an account is disputed, it's not uncommon for the account to update with added lates or changed stati. Looks like the creditor removed a 30-day late but updated the status. It should have been reporting as it is now. Whenever you have a late reporting, it should be reporting a status equal to that late. So, since there was a 90 or worse, then it correctly updated to 90 days past due. Once the 90 day lates are removed, then it'll update to 60 days past due. Remove those, then 30 and so on. 

Contributor
fairclok
Posts: 79
Registered: ‎10-03-2012
0

Re: A little confused. Cleaning up credit report and decrease in Fico Score

Yes.   they are on the same account and came in on the same day.   

 

I kind of understand what you are saying but, my concern is previously the status said "pays as agreed" and after the alert/investigation is says "90 days past due".     Did I inadvertently hurt myself by asking for more information?       Should  I contact the creditor and see if they can return it to the original or maybe have it removed?   Its hurting my chances for refinancing my mortgage

 

thanks for your help with this

 

 


Starting Score: Sept. 2012 EX FAKO 601; EQ FICO 603; TU FICO 607
Current Score: Feb 2014 EX FICO 749; EQ FICO 744; TU FICO 763
Goal Score: 760 on all 3


Take the FICO Fitness Challenge

Valued Contributor
AndySoCal
Posts: 1,939
Registered: ‎04-07-2009
0

Re: A little confused. Cleaning up credit report and decrease in Fico Score

Most likely cause is the previous report the account was in dispute now it is not. When an account is in dispute remains nuetral in the FICO score calculation for the most part.

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