Credit scoring system. It's a racket

[Anonymous]

 I paid off 2 derogatory accounts and 1 collection account, dropped my credit utilization 35%, had one account that reported missed payments, get corrected. Yet, I get no points whatsoever. I've been working extensively on my credit for the last 3 months. There has literally not been one negative thing added since I started working on it. However, every now and then I'll lose a few points here and there. Then I'll gain some only to lose a few. Its so obvious they're keeping me from going up to next credit rating. They want me to accept the credit card offers they keep sending notifications for. It's a racket!!

[Remedios]

Hi and welcome to the forums 

Unfortunately, it's not the scoring system, it's your prior negatives that are keeping you from "going forward" 

Now that's you've paid off accounts and they are no longer updating, you can expect to see some improvement in time untill the last negative is removed (after 7 years), at which time you should see large improvement

Meanwhile, to prevent stressing yourself, best you can do is not default again or let utilization get high. Those things you control. 

[Anonymous]

I thought the new FICO 9 scoring was meant to no longer factor collection accounts once they're paid off?

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@Remedios wrote:

Hi and welcome to the forums 

Unfortunately, it's not the scoring system, it's your prior negatives that are keeping you from "going forward" 

Now that's you've paid off accounts and they are no longer updating, you can expect to see some improvement in time untill the last negative is removed (after 7 years), at which time you should see large improvement

Meanwhile, to prevent stressing yourself, best you can do is not default again or let utilization get high. Those things you control. 

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[simplynoir]

While you're correct that FICO 9 takes paid collections on your report and not factor it in for scoring purposes, they still show up on your report and banks can see this information. Another thing is FICO 9 is not used by many financial institutions with FICO 8 still used the most when banks make their credit decisions. Because FICO 8 reports any negatives even if it has been paid off (why we encourage PFD whenever possible) it will hurt your scores til they fall off as @Remedios said

Best you can do for now is continue to stay on top of your finances and let the negatives get older and eventually fall off down the road

[nwa479]

My experience with FICO 9 is that they did not count the collection.  My EQ score shows 672 with Fico 8 and over 800 with FICO 9.  

What are your FICO 8s vs 9?   You might look at the negative reason codes for clues on what's holding the score down

You mentioned you reduced utilization by 35%.   What was the before and after utilization overall and for individual cards?  How many cards do you have?

What source are you using to get your Fico 8 and 9 scores?

With a few more details on your profile someone on the forum may be able to help identify steps to improve your scores

[FinStar]

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@Anonymous wrote:

I paid off 2 derogatory accounts and 1 collection account, dropped my credit utilization 35%, had one account that reported missed payments, get corrected. Yet, I get no points whatsoever. I've been working extensively on my credit for the last 3 months. There has literally not been one negative thing added since I started working on it. However, every now and then I'll lose a few points here and there. Then I'll gain some only to lose a few. Its so obvious they're keeping me from going up to next credit rating. They want me to accept the credit card offers they keep sending notifications for. It's a racket!!

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Great advice already given upthread @Anonymous.

Are you monitoring your FICO 9 scores exclusively or are you also comparing it to the other FICO version(s) and which CRAs?

[tcbofade]

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@Anonymous wrote:

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Fantastic edit!   

The above posters are trying to help, I promise.

It doesn't always make sense, and certain pieces defy common logic... but there IS a system in place that DOES apply to everyone... and some folks here have gained incredible knowledge of the existing rules and thresholds of how the various scoring systems work.

It's not always fun, but there's a lot of knowledge here if you want it!

Good luck!