Ups and downs

[Minnie]

I broke down and paid Verizon the $122 they claim I owed. In addition, I had a Pier One account containing several year-old baddies (30-60-90) totally deleted! My score jumped from 613 to 648 on TU and from 603 to 628 on Exp. Equifax has not reflected the paid Verizon, but has deleted the Pier One. My score went DOWN from 617 to 601. Thus, I'm thinking the paid Verizon is what made the difference. Thoughts?

[GFer]

Although, it would seem wrong and counter-productive, when you pay on an old collection it becomes 'updated' and FICO sees it as more recent than it actually is. They should really fix this!

[Anonymous]

Here is an article that may help explain what has happened to your score. It sounds like the problem is going to be corrected for the future.

http://articles.moneycentral.msn.com/Banking/YourCreditRating/WhenPayingBillsCanHurtYourCredit.aspx

Best of luck.

[Anonymous]

If that collection is your oldest account, removing it can cost you history, and reduce your age of accounts. Yes, even derogatory accounts are factored into your total age.

[Minnie]

Actually, on the CRs where the Verizon payment is reflected, my score went up. On the one that it has not yet posted to, my score went down. I think the removal of tradeline for the old Pier One made my score go down, but the Verizon payment made it go up. That's what I'm saying.

[GFer]

The only reason your score would go up pertaining to a collection, is because the collection is also included in your utilization. Kind of like running a balance on a cc.

Message Edited by GFer on 09-23-2008 10:40 PM