HELP- My Score Dropped 125 Points***

[Anonymous]

First off, I am so happy to have found this Forum! It is so helpful and I love it! I'm constantly lurking in my free time and it has provided so much knowledge to help in credit building/rebuilding.

Recently I decided that I wanted to tackle my credit as I did have a baddie (medical collection) from years ago that is set to go off in August 14(TU only). I also have 2 installment loans (personal loan and car loan) with 100% on time payments. Car loan 2.5 yrs old and personal loan one yr old. I also have a Fingerhut account that started 4 mths ago with a $400 limit but has increased to $700 for perfect payments. I decided to apply for some cards to build my TL and went on an app spree (wanted inquiries to go off at same time). Here is what I was approved for: Cap1 Plat $300, Cape Quicksilver 1 $300, 3 store cards with a total limit of $250, $250 and $300 and Chase Freedom (after recon) $500 (most excited about this one).

I have been using Credit Karma, Credit Sesame and Quizzes to monitor any changes and did a trial with CreditReport.com to gain Plus Scores- On 7/11/114 my scores were- EX-701, TU (this is where the reported baddie is)-685 and EQ-691.

As of a few days ago, I received an alert that 2 new derogatory acts were added to Experience and sure enough they were.. Both medical collections from this year that I feel I was not provided enough time to correct. Received collection notices last week and reported this week?? So, I decided to be proactive and agreed to PFD (refused to agree in writing) but I paid that yesterday after calling several times and confirming PFD. The second one will be paid off with payments within the next few months.

I checked my score this morning and my EX is now at 576- that's 125 points lower. Only 2 of the cards I was approved for is reporting and the other 4 will follow soon. My UTIL is at about 15% across the board as I use them and pay in full or plan on paying in full.

Can someone please provide info on how my score will change when the one PFD collection is removed, when I make a payment on the second collection and when my other cards are reported. I'm literally in tears as I thought I was in the right direction. Thank you in advance!

[Shogun]

Once those collections are removed, your scores will recover.  Remember though, you have a couple new accounts that will hit your AAoA, so you might not go back up to where you were.  That's OK, because those new accounts are a necessary evil, they will give your score room to grow more.

[Anonymous]

Thank you! Since I PFD on the one account and will be paying monthly payments on the second one (will be paid off in a few months but not removed unless GW note will work) should I expect to see my score go back up by at least half once the PFD collection is removed? I'm not really concerned with the old medical bill as it is only reported on TU and set to go off next month but my EX and EQ were cleans reports. Now EX is "tainted". They also advised they reported to a second bureau but would not tell me which one. I'm not interested in pulling reports for at least a month and that is to ensure the PFD was uphelp. I'm just so bummed with the major decrease. I was in the "Good" rating and have been knocked back down to "Poor" within a matter of days.

[Anonymous]

Can anyone else she'd some light on this situation or similar stories? Thank you in advance!

[eduardofabian1]

Remember that every time new credit makes its way into the mix, your score will lower due to the lenght of the credit history. Eventually will go up, depending on how you pay.

[Anonymous]

Do you think that the two new collections plus two new TV were the cause of a 125 point decrease? Meaning it wasn't just the 2 new collections?

[Anonymous]

TL*** Stupid auto correct.. lol.

[Anonymous]

***Bump***

[Anonymous]

Can anyone provide additional information?

[elim]

YMMV, you will know soon enough. don't panic.  there is really nothing gained by trying to guess where your scores will be in 2 months as no one really knows. you are doing great so far, just keep paying debt, adding and gardening possitive accounts, and removing "what you can" from your reports. (every time i paid one off, another long lost collection showed up lol)

google "whychat hipaa" for med stuff (not discussed on this forum)  they will be gone and your scores will be exactly where they were. (mine were)

google "debtorboards" for legal stuff on legitimate fights  (not discussed on this forum)

i have learned here... "credit is a journey, not a race"

deep breath, your scores will be real nice in a year with the care and attention you are giving them.