FICO score went DOWN after cleaning credit report?
My FICO score dropped 20+ points as a direct result of corrections to my credit report that I made -- clearing old data, bad data, changing account status from "open" to "closed," etc. Can someone explain why? I went through the bother of getting these corrections made, and my score actually dropped as a reult. Help!
Re: FICO score went DOWN after cleaning credit report?
If you closed accounts and still carry revolving debt your debt to available credit would have increased. If this was the case it just means that your UTL now needs to be lower to stay blow 10% or so to keep your score up. A large part of score is keeping your % of total available credit low. Once an account is closed that credit line is no longer counted. If you have $0 debt and score dropped this would be another factor.
If you removed an old account that had a late and this old accounts age was helping your average age, and deleted this could lower average age, resulting in a small score drop.
If you removed an old account that had history and a negative that was very old, the negative was out weighed by long term history. When you deleted this account the history was gone.
But most likely it was just you closed an account that had a credit line helping your total debt to total credit. I am going to guess that you have some debt balances showing on credit cards, paying them off will return your score, maybe higher.