topic Re: FICO drop of 94 points with TU in Understanding FICO® Scoring

FICO drop of 94 points with TU

Sadie5150 — Tue, 16 Oct 2018 18:09:09 GMT

I think I made a mistake on my credit repair tactics. Prior to joining this group and reading all of the valuable information, I had a charge off from Capital One on my CR. The last date of reporting was 2/2016, stating charged off and paid with lower amount owed. I called Cap 1 and found out that I had paid a settlement amount of $75 less than owed. I thought I was doing the right thing when I said I would pay that, so it would show paid instead of settled. Well, they updated with paid alright, and it also updated the reporting date to be 9/2018. Shot my transunion straight down by 94 points ... Is there anyway I can get this fixed? I've already submitted a Goodwill letter to CEO and got a call this morning stating they will review my letter and get back to me within 3-5 days. Not holding my breath that they will do that though.

Re: FICO drop of 94 points with TU

AndySoCal — Wed, 17 Oct 2018 01:31:19 GMT

Ask if you can pay the balance in full rather than settling the account. It may be too late to change the out come.

@Sadie5150 wrote:
I think I made a mistake on my credit repair tactics. Prior to joining this group and reading all of the valuable information, I had a charge off from Capital One on my CR. The last date of reporting was 2/2016, stating charged off and paid with lower amount owed. I called Cap 1 and found out that I had paid a settlement amount of $75 less than owed. I thought I was doing the right thing when I said I would pay that, so it would show paid instead of settled. Well, they updated with paid alright, and it also updated the reporting date to be 9/2018. Shot my transunion straight down by 94 points ... Is there anyway I can get this fixed? I've already submitted a Goodwill letter to CEO and got a call this morning stating they will review my letter and get back to me within 3-5 days. Not holding my breath that they will do that though.

Re: FICO drop of 94 points with TU

Sadie5150 — Wed, 17 Oct 2018 04:36:00 GMT

That's what I have already done. I was trying to do the right thing by paying the additional portion off, g that they charged off in the settlement amount, thinking that it would look better on my report. Instead, it did the opposite, by updating and dropped my score by the 94 points. I've sent a second request to Cap 1 for a Goodwill Deletion, but I doubt it's going to happen. Staying hopeful though.

Re: FICO drop of 94 points with TU

Shooting-For-800 — Wed, 17 Oct 2018 13:17:56 GMT

I would keep sending letters to every address I could find.

Explain the simple situation:

"I should not be penalized for giving you more money."

GL!

Re: FICO drop of 94 points with TU

Sadie5150 — Wed, 17 Oct 2018 17:54:05 GMT

Thank you... I'll include that statement in my letter for sure.

Re: FICO drop of 94 points with TU

Sadie5150 — Sat, 20 Oct 2018 16:27:37 GMT

I've sent emails and snail mail letters pleading with Cap One to honor the information I was given if I paid the amount that was charged off back in 2016. That's when I paid with a "settled for less amount." On my transunion in the "condition" status, showed PAID before making this good will payment, and last activity reported was 2/26/2016. After payment, that status was changed to DEROGATORY with an updated date of 9/13/18. Just that update caused my Trans score to drop 94 points. I'm heartbroken over it and praying they will agree to report the prior status back to credit bureaus. Can they do this? Or am I asking for something they can't do?

Re: FICO drop of 94 points with TU

fuzzle — Sun, 21 Oct 2018 02:24:51 GMT

They can do it, though they might have their own policy that makes it "impossible"

Re: FICO drop of 94 points with TU

Anonymous — Sun, 21 Oct 2018 16:22:40 GMT

@Sadie5150 wrote:
I think I made a mistake on my credit repair tactics. Prior to joining this group and reading all of the valuable information, I had a charge off from Capital One on my CR. The last date of reporting was 2/2016, stating charged off and paid with lower amount owed. I called Cap 1 and found out that I had paid a settlement amount of $75 less than owed. I thought I was doing the right thing when I said I would pay that, so it would show paid instead of settled. Well, they updated with paid alright, and it also updated the reporting date to be 9/2018. Shot my transunion straight down by 94 points ... Is there anyway I can get this fixed? I've already submitted a Goodwill letter to CEO and got a call this morning stating they will review my letter and get back to me within 3-5 days. Not holding my breath that they will do that though.

It seems that once you get on Cap1's bad side, they will never pass up an opportunity to screw you again. What happened was on the old TL (before the payment) they had a DOLA of 2/2016. Once a derog TL hits 2 years old it loses some of its impact on your score. Your mistake was paying them at all - you gave them a new DOLA of 9/2018 which looks to FICO like a brand new default. Next time, if a creditor go 2 years without pressing hard for payment, don't pay them at all unless you have a written agreement that they will not report anything to any CRA.

Re: FICO drop of 94 points with TU

Sadie5150 — Sun, 21 Oct 2018 23:52:08 GMT

Lesson learned for sure . I have written letters and addressed them to 9 different emails to corporate offices, along with an email to the CEO to plead with them for at least a reversal of this latest information reported. I laid it all out there, telling them why I was so irresponsible and not paying them back in 2014. I had taken full responsibility for charge off. Now, I'm just praying they will reverse this last reporting.

Re: FICO drop of 94 points with TU

Shooting-For-800 — Tue, 23 Oct 2018 10:33:14 GMT

@Anonymous wrote:
@Sadie5150 wrote:
I think I made a mistake on my credit repair tactics. Prior to joining this group and reading all of the valuable information, I had a charge off from Capital One on my CR. The last date of reporting was 2/2016, stating charged off and paid with lower amount owed. I called Cap 1 and found out that I had paid a settlement amount of $75 less than owed. I thought I was doing the right thing when I said I would pay that, so it would show paid instead of settled. Well, they updated with paid alright, and it also updated the reporting date to be 9/2018. Shot my transunion straight down by 94 points ... Is there anyway I can get this fixed? I've already submitted a Goodwill letter to CEO and got a call this morning stating they will review my letter and get back to me within 3-5 days. Not holding my breath that they will do that though.
It seems that once you get on Cap1's bad side, they will never pass up an opportunity to screw you again. What happened was on the old TL (before the payment) they had a DOLA of 2/2016. Once a derog TL hits 2 years old it loses some of its impact on your score. Your mistake was paying them at all - you gave them a new DOLA of 9/2018 which looks to FICO like a brand new default. Next time, if a creditor go 2 years without pressing hard for payment, don't pay them at all unless you have a written agreement that they will not report anything to any CRA.

That is not accurate at all.

Cap One is probably the most forgiving bank there is.

I burned them and now have $80k in credit cards and a 2.49% car loan with them.

Re: FICO drop of 94 points with TU

Anonymous — Tue, 23 Oct 2018 12:25:11 GMT

@Shooting-For-800
Cap One is probably the most forgiving bank there is.

Opinions on different lenders vary greatly based on personal experiences. You think they're the most forgiving, the post above you feels the exact opposite. Having no dog in this fight at all (no personal experiences), I disagree with them being anywhere near the most forgiving bank there is. I've done a lot of reading in the rebuilding section of the forum and CO is one of the most difficult lenders when it comes to forgiveness in terms of things like GW adjustments.

Re: FICO drop of 94 points with TU

Sadie5150 — Tue, 23 Oct 2018 17:16:08 GMT

Like I said, lesson learned. I have been able to get 3 deleted from my credit report, which helped tremendously, only leaving with 2 derog accounts. Cap one and Dept of Ed. Dept of Ed is hopefully going to delete, as they have reported a completely innacurate account status and then verified it as accurate twice now with disputes. I have escalated the dispute, citing sections FRCA 623, and 611. NOW, they have decided they will investigate it. So we will see. Had I not opened up that can of worms with Cap One, my FICO would no doubt be in the high 700's. Here's the kicker to this story. I was told that another credit card with a higher limit would help my score. Cap One came back with pre-approvals. So, I applied for their QuickSilver1 card and got an approval of $3000. Just emailed that my card has shipped... sheez...go figure...lol... I haven't given up hope yet. I'm hoping that the multiple letters sent out to them recently, will reach someone who cares enough to at least reverse their most recent reporting and change it with the credit bureaus. Fingers crossed.

Re: FICO drop of 94 points with TU

Anonymous — Tue, 23 Oct 2018 19:27:56 GMT

@Sadie5150I was told that another credit card with a higher limit would help my score.

Credit limits have no bearing on FICO scores. Whoever gave you that information was misinformed.

Re: FICO drop of 94 points with TU

Shooting-For-800 — Wed, 24 Oct 2018 10:30:26 GMT

Cap One is one of the most forgiving banks there is based on blacklisting and 2nd chances.

Time and time again you read horror stories about Citi, Chase, Amex, etc never allowing one to open another account after having issues in the past.

The exact opposite is true with Cap One.

OP - opening higher limit credit cards can help one's score if the have cc debt as it lowers thier utlization ratio.

GL!

Re: FICO drop of 94 points with TU

Anonymous — Wed, 24 Oct 2018 12:12:39 GMT

@Shooting-For-800Cap One is one of the most forgiving banks there is based on blacklisting and 2nd chances.

Time and time again you read horror stories about Citi, Chase, Amex, etc never allowing one to open another account after having issues in the past.

Keep in mind though that Capital One is welcoming to those with iffy profiles relative to the other lenders you mentioned, even with 1st chances. Cap One has no problem approving someone for an entry-level product with a 590 credit score, where the other lenders you mentioned wouldn't touch such a profile in 99.9% of cases. My point is that I don't know that it's so much about Cap One giving second chances as it is they have no problem taking on weaker profiles.

Re: FICO drop of 94 points with TU

Anonymous — Wed, 24 Oct 2018 15:19:59 GMT

OUCH. It's so backwards that paying a debt off penalizes you. What incentive do people have when it comes to paying off debts??

Re: FICO drop of 94 points with TU

Anonymous — Wed, 24 Oct 2018 15:48:54 GMT

@AnonymousIt's so backwards that paying a debt off penalizes you. What incentive do people have when it comes to paying off debts??

Less debt.

Less debt is always more important than FICO scores.

I think it's also a misconception on this forum (from threads like this) that paying off debt penalizes you. There are very few examples of that, such as having all revolvers report $0 balances and paying off your only open installment loan. For every one of these examples, though, there are 100 examples of people paying down debt (lowering reported balances) that results in a score gain.