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paid off $8000 of CC debt and score went down!????..HELP!

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Anonymous
Not applicable

paid off $8000 of CC debt and score went down!????..HELP!

Got some advice here on the forum a little over a month ago. had some money to pay towards outstanding debt and got solid advice as far as what to pay off to have the most impact on my score. Heres were i was to begin with and were i am now in regards to debt.

 

chase slate cc.............................................$3050 balance and a $3200 limit.

Chase freedom cc......................................$6000 balance and a $6000 limit

Capital one cc.............................................$2050 balance and a $2500 limit.

 

AFTER:

Chase slate.................................................$0 balance and $3200 limit

Chase freedom...........................................$2700 balance and a $6000 limit

Capital one..................................................$0 balance and a $2500 limit.

 

I have a few other issues on my CR that have remained the same. Short sale a little over 3 years ago. ex wife and i got stuck with a $10,000 balance we pay at 0% interest. She has made two (2) 30 day + late payments here and there is nothing I can do. have contacted the owner of the debt and they have us both on the hook for the now $7000 balance and will not give that up no matter how I plead. I pay half and she pays half.

 

I also have 2 collections on there. one is about 3 years old, medical for $520 and the other is pretty new. $100 and I have zero idea where it came from..my guess is the ex wife as during our year long divorce I was forced to keep her covered under my health insurance policy and im guessing she went to the doctor and never ponied up for copay. I never ever received anything in regards to this and have no clue what it is for. 

 

I make $60,000 annualy so I think my debt to income ratio is fairly good. No car payment.

 

havent pulled my fico scores through MY fico but have used credit karma and my score with transunion went down 2 points to 540! and my equifax remained the same at 601.  not sure about the accuracy of Credit karma, My girlfriend also uses it she is listed at 798 and her actual fico is 802.  All her scores are within 5 points. also used bankrate.com and they give me 605. 

 

To put things in perspective transunion had me at 672 in january and equifax had me at 660. I was forced to use apply for and use the above cards due to divorce costs ($34,000 total, yeah obscene I know) and almost max them resulting a large drop but since paying them I dont understand why no change. I used annualcreditreport to pull my 3 free reports and they show almost all of the reduced balances. One doesnt show the cap 1 card as paid off. 

 

I am at a loss here as to what to do. Help!

Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: paid off $8000 of CC debt and score went down!????..HELP!

Others will answer with more expertise than I have. However, I do see that on the one account you have a 45% balance. Under 30% or less is better to advance your scores. If you had reduced your balances equally percentage-wise across the board it would have been more helpful to your scores. Once you work on that one account you should see a difference.

 

As I said, others have more expertise, but that is one thing I see in a quick look.

 

Kudos to you for paying down your debt!

 

 

In my wallet: Venture 15k; Barclay Ring 12.5k; Discover 10k; PenFed Promise 10k; CareCredit 7.7k; Amazon Store Card 5k. QS 5k; BA Travel Rewards 3.5k; BA Travel Rewards 3.5k; BA Platinum Visa 2k; Barclay Apple Rewards 2k. Total Credit: 76,200. 7/2-FICO: EQ - 788; TU - 779; EX - 690; Utilization: 12%; GOAL: 780 across the board then 800 across the board. Inquiries: EQ: 7 TU: 7; EX 3; Chapter 13 seven years May, 2015. Reset my garden date to 7/7. Gardening until further notice.

 

Message 2 of 6
Anonymous
Not applicable

Re: paid off $8000 of CC debt and score went down!????..HELP!


@Anonymous wrote:

Got some advice here on the forum a little over a month ago. had some money to pay towards outstanding debt and got solid advice as far as what to pay off to have the most impact on my score. Heres were i was to begin with and were i am now in regards to debt.

 

chase slate cc.............................................$3050 balance and a $3200 limit.

Chase freedom cc......................................$6000 balance and a $6000 limit

Capital one cc.............................................$2050 balance and a $2500 limit.

 

AFTER:

Chase slate.................................................$0 balance and $3200 limit

Chase freedom...........................................$2700 balance and a $6000 limit

Capital one..................................................$0 balance and a $2500 limit.

 

I have a few other issues on my CR that have remained the same. Short sale a little over 3 years ago. ex wife and i got stuck with a $10,000 balance we pay at 0% interest. She has made two (2) 30 day + late payments here and there is nothing I can do. have contacted the owner of the debt and they have us both on the hook for the now $7000 balance and will not give that up no matter how I plead. I pay half and she pays half.

 

I also have 2 collections on there. one is about 3 years old, medical for $520 and the other is pretty new. $100 and I have zero idea where it came from..my guess is the ex wife as during our year long divorce I was forced to keep her covered under my health insurance policy and im guessing she went to the doctor and never ponied up for copay. I never ever received anything in regards to this and have no clue what it is for. 

 

I make $60,000 annualy so I think my debt to income ratio is fairly good. No car payment.

 

havent pulled my fico scores through MY fico but have used credit karma and my score with transunion went down 2 points to 540! and my equifax remained the same at 601.  not sure about the accuracy of Credit karma, My girlfriend also uses it she is listed at 798 and her actual fico is 802.  All her scores are within 5 points. also used bankrate.com and they give me 605. 

 

To put things in perspective transunion had me at 672 in january and equifax had me at 660. I was forced to use apply for and use the above cards due to divorce costs ($34,000 total, yeah obscene I know) and almost max them resulting a large drop but since paying them I dont understand why no change. I used annualcreditreport to pull my 3 free reports and they show almost all of the reduced balances. One doesnt show the cap 1 card as paid off. 

 

I am at a loss here as to what to do. Help!


The answer to your question is - Its Credit Karma!

 

Some other observations:

 

1) A 2 point change is not a drop - thats noise.

2) your annualcreditreport.com pull showed the Cap One balance - Obviously it has not hit your reports yet. So thats two of three cards with a large balance. No prizes awarded for that.

 

 

Once you get the Chase Freedom balance under $600, and the Cap one balance reports - THEN check your scores out.

 

One last question - is there any charged off revolving accounts showing an unpaid balance?

Message 3 of 6
Anonymous
Not applicable

Re: paid off $8000 of CC debt and score went down!????..HELP!

Great job. You're making a lot of progress in the right direction. Stay focused and encouraged.

 

Get the Chase card below $1799 or 30% of the CL.

And if possible either sign up for the 3 credit bureau report monthly monitor, or make a one time purchase of your three rports to know your current scores.

 

But wait for the new balances to update. Generally you'll have to wait 5-7 after the statement close date for them to update with the CRA.

 

Credit Karma is not the best for real scores since they provide the Vantage score, which is different from a Fico score. But CK is great for getting a weekly update of your credit profile. And it helps to monitor details of your accounts.  CK is very accurate for that.

 

You can go to Experian and sign up for a 1 week $1 Fico score. Remember to call and cancell before the week out. They will off you a reuced $9.99 monthly monitor of your score. If you use CK and Experian, you can get a good weekly (CK) and daily (EX) sense of where you are. Best wishes.

 

Also use the reports from annualcreditreport.com to see if there are any incorrect items you can dispute and get deleted.

Message 4 of 6
fishbjc
Senior Contributor

Re: paid off $8000 of CC debt and score went down!????..HELP!

I am sending you a private message.  I have a suggestion.

Message 5 of 6
fishbjc
Senior Contributor

Re: paid off $8000 of CC debt and score went down!????..HELP!

Credit Karma is a HUGE joke.  Don't even waste your time worrying about their scores.  They have my husband at 100 points less than the score I pulled here for him.

 

You're on the right track.  Get that other card balance down...and you will see improvement.  It's the long haul that counts.

Message 6 of 6
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