COLLECTION PAID SCORE DROPPED??

[dpage]

Hello everyone, I paid off a collection account and now my score has dropped 19 points for doing so, can anybody give some insight on this??

[MarineVietVet]

Hi there.

Was this your last derogatory? If so sometimes this will result in a score drop because of being "rebucketed". Or something else in your reports might have changed.

Just paying a collection won't affect your score. The damage is the same whether paid or unpaid.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[jnydc]

FICO may be listing that as a recent "late payment".  Though the account is closed, you have now but recent activity with the late payment, and they dingged you!

[Anonymous]

Any recent activity on a negative account seems to update to a recent negative.  I have experienced that and it will drop your score .  it is always best to attempt a pay for delete with collectors, if all else fails pay the bill but expect a drop in FICO

[MarineVietVet]

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@Anonymous wrote:

Any recent activity on a negative account seems to update to a recent negative.  I have experienced that and it will drop your score .  it is always best to attempt a pay for delete with collectors, if all else fails pay the bill but expect a drop in FICO

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This doesn't apply to collections. I have been guilty in the past of spreading this in error. Since HTSU explains things MUCH better than I can I will C&P this from one of her posts:

Collections are scored off the date of assignment, not the DOLA. A change in DOLA shouldn't affect the score. .

This is such a common belief that we're trying to find examples with before-and-after reports where it happened, in order to see what's going on. If either the CA or the CRA is handling the data incorrectly, it needs to be corrected.

Here's a thread discussing this: Settle or Pay in Full?

Again, I'm not saying that it doesn't happen, but it's not supposed to, if the CA is reporting correctly and if the CRA is putting the info into the correct data fields.

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From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".