So I have a collection on my account. It's over $1500 and apparently they are adding interest. I just received an alert that my fico score changed. Upon checking the reason why it's because that collection account increased my balance by $7.00 My score went up 12 points. I'm not complaining...but my concern is I was going to pay off my old collection bills so I can qualify for a mortgage. This is the 2nd time this has happened with this particular account. My score went up several points in August when they raised the balance by a few dollars. This particular collection is not set to come off my credit report until late 2013/early 2014.
Is this normal? What should I do?
I guess I'm confused by the reasons fico score's go up and down. I thought it was the opposite. A balance increase makes it go down? But I guess that's wrong cause last month I paid a measley $350 I owed to captial one that was in collections and when they updated the balance to ZERO it made my score DROP 20 points.
Can anyone shed some light on my state of confusion?
Thanks in advance!
