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Large Score Drop?

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Anonymous
Not applicable

Re: Large Score Drop?


@SouthJamaica wrote:

* Other Loan balances dropped by about $15k!! (i thought this would help in some way?)

If any instalment loan balances dropped to zero, that might have been a negative; otherwise no.

 

Any thoughts?

 


 


why would an installment loan dropping to zero, or being paid off, be a negative?

Message 11 of 20
Anonymous
Not applicable

Re: Large Score Drop?


@Anonymous wrote:

@SouthJamaica wrote:

* Other Loan balances dropped by about $15k!! (i thought this would help in some way?)

If any instalment loan balances dropped to zero, that might have been a negative; otherwise no.

 

Any thoughts?

 


 


why would an installment loan dropping to zero, or being paid off, be a negative?


Because it's part of the scoring "mix". Stupid, but that's the way it is. That said, paying off a loan would not cause an 83 point drop. The worst I've seen, and it was me, was 33 points. Now, did you by any chance used to have a negative entry or entries in your TU file that had dropped off?

Message 12 of 20
Anonymous
Not applicable

Re: Large Score Drop?


@Anonymous wrote:

@Anonymous wrote:

@SouthJamaica wrote:

* Other Loan balances dropped by about $15k!! (i thought this would help in some way?)

If any instalment loan balances dropped to zero, that might have been a negative; otherwise no.

 

Any thoughts?

 


 


why would an installment loan dropping to zero, or being paid off, be a negative?


Because it's part of the scoring "mix". Stupid, but that's the way it is. That said, paying off a loan would not cause an 83 point drop. The worst I've seen, and it was me, was 33 points. Now, did you by any chance used to have a negative entry or entries in your TU file that had dropped off?

yeah, i havent paid off the loan yet but will this month. im worried that my score will take another hit after that! i have two negative entries in various forms. one is a collection/charge-off from a phone company from 2012, not sure if that is still impacting my score? the other was a tax bill that was paid late which is sometimes listed as a negative. but on my transunion (gotten throught creditkarma) it has zero collections and zero public records

Message 13 of 20
Anonymous
Not applicable

Re: Large Score Drop?


@Anonymous wrote:

@Anonymous wrote:

@Anonymous wrote:

@SouthJamaica wrote:

* Other Loan balances dropped by about $15k!! (i thought this would help in some way?)

If any instalment loan balances dropped to zero, that might have been a negative; otherwise no.

 

Any thoughts?

 


 


why would an installment loan dropping to zero, or being paid off, be a negative?


Because it's part of the scoring "mix". Stupid, but that's the way it is. That said, paying off a loan would not cause an 83 point drop. The worst I've seen, and it was me, was 33 points. Now, did you by any chance used to have a negative entry or entries in your TU file that had dropped off?

yeah, i havent paid off the loan yet but will this month. im worried that my score will take another hit after that! i have two negative entries in various forms. one is a collection/charge-off from a phone company from 2012, not sure if that is still impacting my score? the other was a tax bill that was paid late which is sometimes listed as a negative. but on my transunion (gotten throught creditkarma) it has zero collections and zero public records


TU is dishing up a cached report to Barclays that includes the negatives. This is a known glitch. I dealt with it for months, and it finally corrected itself. Here's the key: During that time any time a creditor pulled my report, either soft or hard, the correct clean file and score were rendered.

Message 14 of 20
Anonymous
Not applicable

Re: Large Score Drop?

on creditkarma i am now seeing that Equifax is reporting an old cell phone (2012/2013) as collection/charge-off which makes my payment history 99.3%.

 

first, why would this change now? 

second, is there anyway to get it off/dispute it?

third, how long will that sit on the report?

Message 15 of 20
Anonymous
Not applicable

Re: Large Score Drop?

Is what is being reported accurate or an error?

Message 16 of 20
Anonymous
Not applicable

Re: Large Score Drop?

it was a late payment, but not a collection. i called the phone company to ask them to mark the account "closed" as it was still listed as open and then this happened

Message 17 of 20
RonM21
Valued Contributor

Re: Large Score Drop?


@Anonymous wrote:

on creditkarma i am now seeing that Equifax is reporting an old cell phone (2012/2013) as collection/charge-off which makes my payment history 99.3%.

 

first, why would this change now? 

second, is there anyway to get it off/dispute it?

third, how long will that sit on the report?


If this is in fact true, no matter what bureau it is, this can cause a big drop, combined with the decrease in available credit and slight raise in utilization.  THe collection would be the lion share of that percentage though.  It will be on there 7 years +180 from the time of negative, unless you dispute it and are succesful, or went the goodwill route to get it removed.



Total CL: $321.7kUTL: 2%AAoA: 7.0yrsBaddies: 0Other: Lease, Loan, *No Mortgage, All Inq's from Jun '20 Car Shopping

BoA-55k | NFCU-45k | AMEX-42k | DISC-40.6k | PENFED-38.4k | LOWES-35k | ALLIANT-25k | CITI-15.7k | BARCLAYS-15k | CHASE-10k

Message 18 of 20
Anonymous
Not applicable

Re: Large Score Drop?


@RM21 wrote:

@Anonymous wrote:

on creditkarma i am now seeing that Equifax is reporting an old cell phone (2012/2013) as collection/charge-off which makes my payment history 99.3%.

 

first, why would this change now? 

second, is there anyway to get it off/dispute it?

third, how long will that sit on the report?


If this is in fact true, no matter what bureau it is, this can cause a big drop, combined with the decrease in available credit and slight raise in utilization.  THe collection would be the lion share of that percentage though.  It will be on there 7 years +180 from the time of negative, unless you dispute it and are succesful, or went the goodwill route to get it removed.


what is the goodwill route? it was never showing as a negative up until this week despite the fact that it is 4 years old!

Message 19 of 20
Anonymous
Not applicable

Re: Large Score Drop?

You may want to add another installment loan now before you pay off your other current loan so that when the other one reports you'll satisfy that part of your mix regardless of if the first loan is paid off.  Worst case scenario is that the new loan doesn't report right away and you go 1 month without an installment loan reporting so you take a score hit for that one month.  No big deal there, but at least you'll have a plan in place to rebound from it the following month.

Message 20 of 20
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