Slow FICO response.

mtngirrrl · ‎11-27-2007

Hello: Within the last two months, I paid off $30,000.00 in consumer debt. I also paid off a small debt wihch had gone to a collection agency. My FICO score has gone from 530 to 601-an increase of 65 points. I recently charged $200.00 on a credit card for auto repair and my score immediately dropped to 595-a decrease of 6 points. Is this normal? It seems like it takes a month or two for the FICO score to respond to payments, but it responds immediately to charges. Also, should I request a credit review to make sure I am getting credit for paying down my debt?

Anonymous · ‎11-27-2007

Howdy mtngirrl, welcome to the forum. I'm a great plains girl myself. lol

What is the credit limit on the card you made a $200 charge on? Sounds like your utilization ratio caused the score drop(the ratio of what is owed/credit limit). That's very common. Also, how old is the card? You may be eligible for a cli(credit limit increase). That always helps.

Phew! That's a very hefty paydown on your consumer debt. Congratulations.

Anonymous · ‎11-27-2007

mtngirrrl wrote:
Hello: Within the last two months, I paid off $30,000.00 in consumer debt. I also paid off a small debt wihch had gone to a collection agency. My FICO score has gone from 530 to 601-an increase of 65 points. I recently charged $200.00 on a credit card for auto repair and my score immediately dropped to 595-a decrease of 6 points. Is this normal? It seems like it takes a month or two for the FICO score to respond to payments, but it responds immediately to charges. Also, should I request a credit review to make sure I am getting credit for paying down my debt?

an increase in only 65 points? you might as well have just kept the 30 grand and invested it in waiting out 7 years for that stuff to drop off...lol

Ausfarm · ‎11-27-2007

How old was the collection? Paying the collection may have prompted the agency/creditor to update your file to reflect that the collection has been paid off. When they updated the record, it may have made an old collection account new again. Have you tried sending a GW letter to the agency/creditor to see if they'd be willing to take it off of your credit reports?