Reply
New Member
Thejumpsuitman
Posts: 4
Registered: ‎04-07-2009
0

On time, paid of Discover, and Equifax score dropped 26 points! WHY??!!!

I was livid last night to see that despite my settling with Discover Card and initiating a dispute over the categorization of another old neg. account (paid off years ago), AND paying my mortgage on time, my Equifax credit score dropped from 634 to 621 to 608!  Why on earth would this have happened?  Does filing a dispute cause a credit score drop???  Does settling an old written-off debt hurt your credit?  It seems I am being punished for doing the right things!  Can anyone out there explain this illogic to me?  Thanks.
New Member
Thejumpsuitman
Posts: 4
Registered: ‎04-07-2009
0

Re: On time, paid of Discover, and Equifax score dropped 26 points! WHY??!!!

I am new here, and have only recently re-entered the land of the living after not caring about my decimated credit score for years.  After reading some other posts, it sounds like I may have been re-bucketed???  Does that sound right?  An old Discover charge-off was settled, that's the major change that took place. 
Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

Re: On time, paid of Discover, and Equifax score dropped 26 points! WHY??!!!

You would only be re-bucketed if that CO went away completely. I'm guessing that the dispute could have caused the initial drop. The final drop, assuming nothing else happened to your reports, could have been caused by the date change on the "reported date" or the DOLA to the day or month you paid the account. FICO is likely reading this as a newer baddie and that could very well do that. A "settled" account with that mention on your CRs is just as bad as a CO in lenders' and FICO's eyes.

You could GW the OC and ask them to remove those comments. Comments may include "charge-off", "settled", "settled for less than full", "was a charge-off" or the like.
New Member
Thejumpsuitman
Posts: 4
Registered: ‎04-07-2009
0

Re: On time, paid of Discover, and Equifax score dropped 26 points! WHY??!!!

Thanks for the reply.  The Discover card was already listed as a charge-off, and still is.  So that must not be it.  There was a notation that Discover did some kind of reporting, but no numbers have changed.  I settled with them  in full for less than the original amount thinking this would help by removing the balance still owed.  Did I screw myself up?  You reminded me that a collection did drop off, but it did so last month, and my score went from 618 to 634.  It is very frustrating to do the "right thing" and be punished for it, if that's the case.

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}