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New Member
ccfaith12
Posts: 3
Registered: ‎04-18-2013
0

Why did my score go down?!!!

I had a credit score of 633. In an effort to get to a 640 to obtain an FHA, I paid off 2 collections on my report. One of those collections was immediately taken on the report, so they said "as a courtesy", the other has stayed on but I received a letter from them in writing that the account is now "closed". So why did my score go down 10 points?!!! I am trying SO HARD to repair my score but I'm about to give up at this point and keep renting which is something that I don't want to do forever. Could anyone please help and tell me why this happened? And what can I do to raise this score to a 640 as quickly as possible?

Established Contributor
InvincibleSummer3
Posts: 640
Registered: ‎11-20-2012
0

Re: Why did my score go down?!!!

What does the rest of your credit file look like? It's really hard to say without knowing the larger picture.

New Member
ccfaith12
Posts: 3
Registered: ‎04-18-2013
0

Re: Why did my score go down?!!!

I have a few other collections on there but they are medical bills. The report says that they are supposed to be taken off in a few months because they are so old. Also, a lender that I was working with said she didn't see anything that stood out and that she just thought I needed more time. But this was said before I paid off the two collections. I also have some student loans on there but none of those are in default.

Established Contributor
InvincibleSummer3
Posts: 640
Registered: ‎11-20-2012
0

Re: Why did my score go down?!!!

Do you have any open revolving accounts? If so, what does your utilization look like? Has that changed since your last report?

New Member
ccfaith12
Posts: 3
Registered: ‎04-18-2013
0

Re: Why did my score go down?!!!

I have a car payment paid on time every month. I also have 3 CC's that were paid off before the FICO score was checked again. All of them have a 0 balance.

Established Contributor
InvincibleSummer3
Posts: 640
Registered: ‎11-20-2012
0

Re: Why did my score go down?!!!

It's not impossible that the payment could have been part of the drop, but I'm also inclined to think that if all your credit card balances were at zero that might be a factor too. For optimum scoring, you'll want to have a small balance on one. So two cards that report at zero, and one that reports with less than 9%. For whatever reason, there's a score ding when all cards are at zero. Even $10 is better than zero.

Don't lose hope. This could be a fixable drop.

New Member
robbyg
Posts: 2
Registered: ‎02-05-2013
0

Re: Why did my score go down?!!!

I know this is old, but I'm not sure if anyone answered your question. Your score most likely dropped after you paid off the collection that continued to report. It shows on your credit report as new activity on a collection account. Even if it's good that you finally paid it off, sometimes it's better to not wake the beast, so to speak. Getting them deleted is the only way to go, otherwise it's best to leave them alone until right before you close (if that's a condition of your lender) and then your score won't update until after you've already closed. 

Regular Contributor
sarahcmgreen
Posts: 113
Registered: ‎01-28-2013
0

Re: Why did my score go down?!!!


robbyg wrote:

I know this is old, but I'm not sure if anyone answered your question. Your score most likely dropped after you paid off the collection that continued to report. It shows on your credit report as new activity on a collection account. Even if it's good that you finally paid it off, sometimes it's better to not wake the beast, so to speak. Getting them deleted is the only way to go, otherwise it's best to leave them alone until right before you close (if that's a condition of your lender) and then your score won't update until after you've already closed. 


Yep. Exactly what it was. 


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