HELP WITH 42 POINT DROP???

srodier · ‎12-08-2010

I ran my report today just like any other time. I noticed a total debt drop of $91.00. I have 2 student loans that dropped the balance and high balance totaling 91.00. When I checked my score it had dropped 42 points? Also added comment "loan not in repayment", been in forbearance for 2 years. Why would my total debt dropping lower my score instead of raising it? Also how do I correct this as this has hit my score really hard I was almost out of the bad credit range.

llecs · ‎12-08-2010

@srodier wrote:
I ran my report today just like any other time. I noticed a total debt drop of $91.00. I have 2 student loans that dropped the balance and high balance totaling 91.00. When I checked my score it had dropped 42 points? Also added comment "loan not in repayment", been in forbearance for 2 years. Why would my total debt dropping lower my score instead of raising it? Also how do I correct this as this has hit my score really hard I was almost out of the bad credit range.

Where did you get your score info from? ScoreWatch I'm guessing?

On the surface, a decrease in installment balances won't drop your score by 42 points. In fact, it won't increase or decrease your scores at all. Something else must have happened (e.g. increased utilization, change in account status, dropped TL, updated baddie, etc.).

srodier · ‎12-08-2010

TRUECREDIT FROM TRANSUNION. AND NOTHING ELSE HAPPEN. JUST THE HIGH BALANCE AND BALANCE DUE DROPPED. JUST NOTICED CURRENT STATUS CHANGED FROM CURRENT TO UNKNOWN. HERE IS ONE OF THEM THAT WAS CHANGED THE OTHER WAS CHANGED THE SAME WAY EXCEPT FOR $16.00

Condition:

Open

Balance:

$572

$497

(-$75)

Type:

Educational

Pay Status:

Current

Unknown

Past Due:

$0

High Balance:

$2,075

$2,000

(-$75)

Terms:

23 Months

Limit:

$0

Payment:

$50

Opened:

10/03/2005

Reported:

10/31/2010

11/30/2010

Responsibility:

Individual

Remarks:

---

Student loan not in repayment

llecs · ‎12-08-2010

First off, ignore the score from TrueCredit. It's a FAKO and they tend to do weird things like ding for comments that FICO would never ever ding you on, assuming this is the only change. Your FICO score may not have even changed at all. Give me a few, but I'll check around with regards to that comment and FICO scoring.

srodier · ‎12-08-2010

I FIGURED SOMETHING LIKE THAT BECAUSE MY CREDIT KARMA RAISED 2 POINT.

Anonymous · ‎12-08-2010

Hi srodier,

When it gets to the point that fako scores are causing you concern, it's time to pull a FICO score.

When you have a few bucks, google discount codes for myfico and pull either a TU or EQ FICO here.

You'll feel confident knowing that you have your real FICO score; and your report will give you real advice on how to improve your score as you move forward.

Congrats on your hard work working with your credit scores and your lowered balances. All good stuff!