FICO score went down - help!

[Anonymous]

Hello!  I signed up for Score Watch recently and just got my first alert and my FICO score went down!  There was also an account change on the same day but to me, it seemed like a good change.  A little bit of history:  I have TERRIBLE credit...when I signed up a couple months ago, FICO was 512 (today went down to 503).  I am in a credit counseling program to help me get some of this debt under control and today, one of my accounts reported a new balance (went down by $10 maybe) and said something like "is behind by 2 payments" whereas the previous comment on this account was "is behind by 3 payments" so to me, I thought, if it did anything, it would HELP my score, not make it go down!  Any ideas why I lost 9 points?  Thanks so much -- I'm learning a lot from these forums!  The goal is to buy a house this year but not sure I can get my score to where it needs to be...

Mindy

[Anonymous]

If that is the only change, I would say the decrease is from the negative account updating.

[Anonymous]

So even though the account is better than before (only 2 pmts behind instead of 3), because its still considered a negative account, it sent the score down?  If that's the case, I'm in big trouble in the next few months because I have a few that are like that...  

Thanks!

[corkyduckfan]

I just contacted Equifax and disputed an account that isn't mine with AFNI (scumbags).  Among other things, I have Scorewatch and Creditwatch through Equifax and my score went down 27 points as I had an alert regarding my dispute with AFNI.  I am assuming that that is the reason that my score went down 27 points.  Is my thinking correct about this?

[marty56]

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@Anonymous wrote:

I am in a credit counseling program to help me get some of this debt under control

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Are you in a Debt Management Program (DMP) or a debt Settlement Program.  The DMP does not reduce the principle you owe and should not be making late payments.  A Debt Settlement program says they will reduce the principle of what you owe but they are rip-offs and will destroy your credit.  If you are with a debt settlement company, you need to get iout of that program ASAP.

[Anonymous]

Correct me if I am wrong in my understanding  all your accounts updated. So previously you had a 90 day late on that account. You made a payment so now it shows 60 days late.

Now you have a 60 AND a 90 day late. The lates are adding up. If you get current and go 90 days late again  you will get another 90 day - and so on. They keep a counter. It will then say 30-3  60-2  90-3  or whatever.