topic Re: 15 Point drop via Score Watch in Rebuilding Your Credit

15 Point drop via Score Watch

thojawan2000 — Sat, 11 Apr 2009 18:52:42 GMT

So I have this old chargeoff for a Jared card in 2005. In February 2009 I decided to pay off the balance in. Early March I received a bump up in score which I can assume was related to cc utilization. But today I woke up to a score alert of this:

Previously reported

Balance: $0

Past Due: $0

Status: Bad Debt; Placed for collection

Last activity: 3/1/2005

Description: Charge off account, Charge, Amount in high credit is original charge-off amount

Newly reported

Balance: $0

Past due: $0

Status: Bad Debt; Placed for collection

Last activity: 2/1/2005

Description: Paid charge off, Account closed by credit grantor, Charge, Amount in H/C column is credit limit

What's different? How did the result in such a significant score drop. I thought in 2007 Fair Isaac made it penalty free to pay off old debts.

Message Edited by thojawan2000 on 04-11-2009 11:52 AM

Re: 15 Point drop via Score Watch

Anonymous — Sat, 11 Apr 2009 18:54:18 GMT

You need to compare the account from a prior report to a new report, line by line. All dates.

See what changed. A date or something changed somewhere.

thojawan2000 wrote:

. I thought in 2007 Fair Isaac made it penalty free to pay off old debts.

Could you expand on this? Not sure I know what you are talking about.

Re: 15 Point drop via Score Watch

Anonymous — Sat, 11 Apr 2009 18:57:49 GMT

I can attest to your situation the same thing happened to me. I payed off the debt. They reported to Exquifax and Expreian but not Transunion. So I diputed it. My score dropped 19 points. Then a week later it went back up 19 points. So maybe it was an error on their part that they may fix within a week.

Re: 15 Point drop via Score Watch

Anonymous — Sat, 11 Apr 2009 19:00:01 GMT

What's different? How did the result in such a significant score drop. I thought in 2007 Fair Isaac made it penalty free to pay off old debts.

There was no such thing!!

A CO remains the same paid or unpaid. Your score might have gone down because the collection was updated!

Re: 15 Point drop via Score Watch

thojawan2000 — Sat, 11 Apr 2009 19:02:12 GMT

What I don't understand is if I paid it off in February and they reported the balance to be zero. Why are they now updating the account? My relationship with them should be over, finished. There is nothing left for them to report on.

I just compared an old report to a new one I got today and the difference is the last activity date which is one month less than the previous report and the description. That's it.

Is there anything to dispute?

Re: 15 Point drop via Score Watch

Anonymous — Sat, 11 Apr 2009 19:04:06 GMT

No other dates changed?

Date closed?

They can continue to report monthly until CRTP expires.

DOLA could cause the drop, it makes it appear more recent.

DOLA shouldn't change any more since it is paid there wont be any activity on the account.

Re: 15 Point drop via Score Watch

thojawan2000 — Sat, 11 Apr 2009 19:04:37 GMT

Again, I understand it was a collection account that was previously updated with a zero balance. Then for them to come back a month later and "update" the account doesn't seem fair to me. As I stated earlier, just the last activity date and description changed...but why?

Re: 15 Point drop via Score Watch

thojawan2000 — Sat, 11 Apr 2009 19:06:02 GMT

Sidewinder,

Nope, no other dates chaged. And the date of last activty was reduced by a month. So I know it's not a lot of points, I'm just trying to understand the process.

Re: 15 Point drop via Score Watch

Anonymous — Sat, 11 Apr 2009 19:16:38 GMT

The last update would be from the Feb payment. This is showing that they last updated in 2005. As baddies age they lose some inpact on your scores. Because of the 2009 payment, the CA updated it and FICO will pick up the 2009 date and read it as new.

Unless you use a PFD to make a payment, the CA can continue to report up to CRTP. Approx 7 years from DOFD which is set by the OC.

Re: 15 Point drop via Score Watch

Anonymous — Sun, 12 Apr 2009 16:46:46 GMT

This same thing happened to me Friday. I am mad as he#% about it, too. My score just took a 19 point nosedive because I paid off an old charegeoff and settled on another. Both original creditors updated and FICO claims I really MISSED a payment. I am so through with this!

All I know to do is NOT pay another dime to anyone until the CRTP ends next year on all my major baddies.

This was so demoralizing considering I had crawled out of the 500's into the low 600's (613-618) and now I'm back weighing in at 594.

If I ever get out of this credit mess, I will never, NEVER, have this trouble again.

Re: 15 Point drop via Score Watch

thojawan2000 — Sun, 12 Apr 2009 17:21:01 GMT

palmbeach,

I feel the same way. When I made this mess I didn't know how big of a hole I put myself in. Now that I am becoming educated on credit and credit worthiness, I pay close attention to every dime I spend and pay. I found it is much easier to make timely payments using webpay. I don't have to think about when the payment is due nor do I have to write a check.

Let's both keep up the good work. As you have read on this site or others.....there is always light at the end of the tunnel...it's just the tunnel maybe 7 years long

Re: 15 Point drop via Score Watch

Anonymous — Sun, 12 Apr 2009 17:41:24 GMT

Check date closed as well.........especially when it says recently missed payment.

Just went through this with another member, when they paid the CO, the date closed was updated to Feb 2009 or March 2009 one, can't remember. And they got the same message "recently missed payment".

Re: 15 Point drop via Score Watch

Journey — Sun, 12 Apr 2009 23:18:09 GMT

That was me, and Sidewinder was right. The date closed changed to more recently, which somehow must have triggered SW that I "missed a payment." The creditor was Macy's, so I called them, at Sidewinder's suggestion, and they were very nice, telling me that my records matched theirs (date closed 7/06), and asked me to fax them a letter with copies of the CRs and a request to changed it back and fix the error. That was just Friday, so it is too soon to tell, but I hope it turns out well!

Hang in there...I heard someone once say that credit repair is not for the faint of heart, and I can certainly attest to that!

Re: 15 Point drop via Score Watch

Anonymous — Sun, 12 Apr 2009 23:25:21 GMT

Thank you Journey!

Yes, it was Macy's for me, too. It happened Friday. Somebody must've got laid off and decided to give everyone a bad day along with them.

I will call them tomorrow.

Such a timely post.

Re: 15 Point drop via Score Watch

thojawan2000 — Sun, 12 Apr 2009 23:37:51 GMT

I just got my report, Jared updated my account to Reposession/Foreclosure. Can they do that? They also updated it from 90 days late 4 times to 90 days late 45 times? All I did was pay it in full, which they updated the balance and account to closed. I sent another GW asking for the derogs to be removed and this is what I get. Seems tI pissedsomeone off?

Re: 15 Point drop via Score Watch

Journey — Mon, 13 Apr 2009 01:09:22 GMT

You are welcome, PalmBeach! Let me know how it goes...