Established Member
faiths13
Posts: 86
Registered: ‎03-11-2012
Paid Off Collection, Score Went Down

We paid off a collection from a Utility Co and now my husbands score has gone down ALOT. LIke 30 points. I have heard that paying of debts can make your score go down but didnt expect this. Is this something that is going to stay down, or is it going to go back up? Is there something we can do to make the score go up?

Moderator
pizzadude
Posts: 9,674
Registered: ‎01-28-2010
Re: Paid Off Collection, Score Went Down

 

In some cases I believe that yes, paying a collection can lower your FICO score.   I think it has something to do with one of the dates being updated to make the collection appear more recent.    

 

Have you asked them to GW remove the collection ?

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Established Member
faiths13
Posts: 86
Registered: ‎03-11-2012
Re: Paid Off Collection, Score Went Down

Im not sure waht GW means?

Moderator
pizzadude
Posts: 9,674
Registered: ‎01-28-2010
Re: Paid Off Collection, Score Went Down

faiths13 wrote:

Im not sure waht GW means?


GW is Goodwill.   It is a request to a creditor to remove derogatory information, such as late payments, collections, charge-offs, from your credit reports.

 

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Established Member
faiths13
Posts: 86
Registered: ‎03-11-2012
Re: Paid Off Collection, Score Went Down

No we didnt. I will try to see if they will, but now that we paid they prob wont care.

Moderator
pizzadude
Posts: 9,674
Registered: ‎01-28-2010
Re: Paid Off Collection, Score Went Down

 

GW success varies by creditors.   You have nothing to lose by trying.   And if they say no you can always try again.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX