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I had two collection accounts that were on my credit report. They had a very high balance so I decided to try the PFD route. It worked. I checked my report today.. the collections were gone (HOORAAAAAY), but my score had dropped 10 points!!
How did this happen? Is it because my AAOA was reduced? How can I get my score back up?
Probably dropped from the AAoA, or could be a rebucketing issue. Doesn't matter, it was baddies removed. This will give your score more room to grow.
How old were they? Also, if this happens to me after my recent PFD I'll lose it
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The accounts were both 6 years old, ready to drop off next year. Unbelievable. I thought I was doing the right thing.
Oh 100% you still are. What were the collections account? Were they listed under the OC or a CA? Also, I assume this was a score watch alert right?
| Chase Freedom $9500 DCU Visa $10000 Capital One QS $2000 AMEX BCE $3000 | Lowe's CC $8500 WalMart CC $3100 BOA Platinum $600 AMEX Gold NPSL |
You did do the right thing, a 10 point drop and a cleaner report. Your score will rebound and be better. What positive TLs do you have?
@Anonymous wrote:I had two collection accounts that were on my credit report. They had a very high balance so I decided to try the PFD route. It worked. I checked my report today.. the collections were gone (HOORAAAAAY), but my score had dropped 10 points!!
How did this happen? Is it because my AAOA was reduced? How can I get my score back up?
Wow pretty nuts. As other's have asked, were the accounts in collections or did they show charged off?
The score probably dropped becasue of the AAoA unfortunately.
I hope I don't run into the same thing, I just mailed off a PFD two days ago. My account shows in collections with all three CRAs and it's about 5 years old.
That's good to now. I am happy about not having those two orange flags.
Baddies remaining
Wells Fargo Financial (Auto) - a 30 day and 60 day [Feb 2010]
Capital One - 30 day [Jul 2009]
Capital One - 30 day [Aug 2009]
BK, Chapter 7 [10/2003]
Right now my scores are:
TransUnion: 668
Equifax: 661
The collections have not been removed from my Equifax, so my score has not been affected.
The lates are over 2 years old so they've lost most of their sting, and your BK is almost 10 years old. Overall, you're making good progress.
@Jutz wrote:Oh 100% you still are. What were the collections account? Were they listed under the OC or a CA? Also, I assume this was a score watch alert right?
Jutz -- these accounts were reported by a CA. The 2 accounts were from the same OC.