topic Re: Payment Plan with Collection Agency in Rebuilding Your Credit

Payment Plan with Collection Agency

Anonymous — Sat, 20 Apr 2013 02:26:29 GMT

Due to my mistake I missed a court date that I was aware of and Portfolio Recovery won a default judgement against me. Next came legal filing to start garnishment. So in order to prevent garnishment I agreed to a payment plan. I can not afford the pay the balance in full. One payment has already reported to all 3 credit breaus. It didn't seem to have any negative effect on my Transunion and Experian score however my Equifax score has dropped 60 points!! Nothing else has changed on my report so I have to belive its the recent payment brining my score down. So my questions are:

Why was only my Equifax score effected?

Will each monthy payment drop my score more every month?

Even though Transunion and Experian wern't affected this month could they be effected in future months?

Thanks in advance for your help and/or suggestions

Re: Payment Plan with Collection Agency

Anonymous — Sat, 20 Apr 2013 02:44:32 GMT

When was the last time they reported? Had the account been dormant for a while?

Making a payment should not have dropped your score, especially 60 points.

Did you get your reports directly from the CRAs after the drop?

Re: Payment Plan with Collection Agency

Anonymous — Sat, 20 Apr 2013 03:06:27 GMT

Thanks for responding so quickly

The collection agency had been repoted the balance monthly, the only activity was date reported from 2008. Now its updated with my recent April 2013 payment. I received a FICO score watch alert on 4/7/13 that said my Equifax was 574. My Equifax FAKO through USAA monitoring was 568 on 4/5/13. Today I checked through Equifax directly and i was schocked to see a 513.

What else could have caused the score drop?

Re: Payment Plan with Collection Agency

Anonymous — Sat, 20 Apr 2013 04:06:28 GMT

You would have to look over your report carefully and make sure nothing else happened, like a late payment, another CA. Something like that. I just don't believe it was for that payment. Way to big of a drop.

Re: Payment Plan with Collection Agency

Anonymous — Tue, 23 Apr 2013 16:57:05 GMT

Guiness56 you were right. My weekly FICO score watch alert says my score hasn't changed and is still 574. So I guess my FICO Equifax and Equifax FAKKO are sixty points apart. That just seams so far apart considering they are pulling info from the same database.

Re: Payment Plan with Collection Agency

Anonymous — Tue, 23 Apr 2013 21:16:08 GMT

60 points between a FAKO and a FICO is really nothing. I have seen them 100+ points off.

They may pull from the same data however each score is calculated entirely differently.