Is it normal for your score to get worse before it gets better?

[musicalmom]

I couldn't find my original post but here's an update. Am I on a good track still? Any suggestions? 

Paid accounts: Indigo, First Prem, Credit One, Fingerhut, Mont Wards, and my secured Cap One that cannot be converted.

Got my Discover secured with a $200 limit. I have an $8 balance. I haven't been billed yet. Is $200 good or should I put more money? 

So I'm left with a $750 unsecured Cap One. It's at $750 balance. (When I get my $500 back from my secured card I'm going to put it towards this balance)

I'm in the second month of my Self Lender loan.

I have a Military Star with $3000 on it. I'm planning on having that paid by Feb/March.

That's it! I know I need one more credit card (at least I think) but I'm not sure what to try for or wait and maybe see after the first of the year where my score is at. 

Another note..I have 3-4 medical collections all less than $100. Do I pay those off? They're a couple years old. A Cox Cable $600, and an old Verizon $850. 

Thanks in advance for any suggestions. I'm really hoping to buy a house in 2020. Crossing fingers. 

[FireMedic1]

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@musicalmom wrote:

I couldn't find my original post but here's an update. Am I on a good track still? Any suggestions? 

Paid accounts: Indigo, First Prem, Credit One, Fingerhut, Mont Wards, and my secured Cap One that cannot be converted.

Got my Discover secured with a $200 limit. I have an $8 balance. I haven't been billed yet. Is $200 good or should I put more money? 

So I'm left with a $750 unsecured Cap One. It's at $750 balance. (When I get my $500 back from my secured card I'm going to put it towards this balance)

I'm in the second month of my Self Lender loan.

I have a Military Star with $3000 on it. I'm planning on having that paid by Feb/March.

That's it! I know I need one more credit card (at least I think) but I'm not sure what to try for or wait and maybe see after the first of the year where my score is at. 

Another note..I have 3-4 medical collections all less than $100. Do I pay those off? They're a couple years old. A Cox Cable $600, and an old Verizon $850. 

Thanks in advance for any suggestions. I'm really hoping to buy a house in 2020. Crossing fingers. 

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I'm not a collections expert. I'll leave that for someone else. You got a couple maxed cards. KILLER! Get them paid down. Practice the AZEO method once they are paid down. No more apps. You have more than enough revolvers. You have a installment loan. Good. More cards doesnt lead to higher scores. Now for the collection guys to chime in. GL!

[musicalmom]

ha! Thanks. I paid 6 cards down and closed in two months so I'm getting there. 

My plan is to be AZEO realistically by February. 

Now about those collections.....lol ?

[RobertEG]

Collections are treated as extended periods of delinquency until they are paid.

If/when a debt collector makes updated reporting to a CRA that shows the debt remains unpaid, that informs the scoring algorithm that the period of overall delinquency since date of initial delinquency has increased, and the debt remains delinquent.

Thus, updated reporting by a debt collector of an unpaid collection acts similar to updated reporting by a creditor that the account has moved from, for example, 60days late to 90 days late.

Once you pay the collection, updated reporting by the debt collector usually ceases, but even if they make updated reporting for some legit reason, such as to correct the accuracy of prior information, that reporting does not extend the period of delinquency for scoring purposes, as the current status will be paid,closed, which is not treated by scoring algorithms as an increased period of, and statement of continued, delinquency.

That is the long way of saying that leaving a collection unpaid will continue to have increased negative scoring impact if/when any updated reporting is made on the collection. 

Debt collectors can make regular monthly updated reporting on unpaid collections, and will often do so as part of their business model to entice payment of the debt.

[musicalmom]

Ok, at the risk of sounding dumb, can you break it down into plain English for me? Please 

[tubbynerd]

Cliff notes version:

They hurt, pay them. PFD if possible

[musicalmom]

OK, ty!

[Anonymous]

I paid off a couple of small medical collections and got a cute 26 point bounce. If nothing else, it’s good for the confidence boost.