Paid charge off just reported, score dropped 15 points.

[BM1990]

Today I've noticed that a chargeoff I  paid in full last month has just reported and now my score has dropped 15 points! This is very disheartening and discouraging. Can anyone explain why this would happen ? Such a bummer! I had some plans of treating my self to a nice car in the upcoming months. I'm almost positive that this score drop will make this task even harder. I can never win man, NEVER!! LOL..

[blindambition]

Was it previously updating regularly? If not, CO looks fresh to the algorithm. Now that it's paid, no more updating will occur. Scores can now rebound.

[BM1990]

Yes, it was reporting regularly and I was making monthly payments on it regulary, as agreed. After a while, I just decided to pay it all down in one big payment, boy was I wrong!!! I should've just kept making incremental payments on it (seems like that's what bureaus prefer). I just find it kind of awkward how it decreased my score like that. 

[blindambition]

That would have happened even if you took longer. It's now updated to $0, so there is no longer activity. Until the account is deleted completely.

[OmarGB9]

It's odd that a charge off that's updating regularly would cause a score drop once fully paid off. Are you sure nothing else on your reports changed? Utilization increase elsewhere? New inquiries/accounts? New collection popping up?

[Anonymous]

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@BM1990 wrote:

Today I've noticed that a chargeoff I  paid in full last month has just reported and now my score has dropped 15 points! This is very disheartening and discouraging. Can anyone explain why this would happen ? Such a bummer! I had some plans of treating my self to a nice car in the upcoming months. I'm almost positive that this score drop will make this task even harder. I can never win man, NEVER!! LOL..

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Are you looking at Fico scores or Vantage scores?

[BM1990]

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@OmarGB9 wrote:

It's odd that a charge off that's updating regularly would cause a score drop once fully paid off. Are you sure nothing else on your reports changed? Utilization increase elsewhere? New inquiries/accounts? New collection popping up?

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Yes, some interest accrued on a lingering collection I have. I'm trying to take care of all of my chargeoffs before I tackle my collection account. Should I be doing it the other way around ? Take care of collection first?

[BM1990]

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@Anonymous wrote:

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@BM1990 wrote:

Today I've noticed that a chargeoff I  paid in full last month has just reported and now my score has dropped 15 points! This is very disheartening and discouraging. Can anyone explain why this would happen ? Such a bummer! I had some plans of treating my self to a nice car in the upcoming months. I'm almost positive that this score drop will make this task even harder. I can never win man, NEVER!! LOL..

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Are you looking at Fico scores or Vantage scores?

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I got the score from Experian.com. It's Fico 8. I'm not sure about the others, they haven't reported yet. 

[Anonymous]

This actually happened to me last month. Discover card was updating monthly and I PIF and when it updated my score dropped 20 points. Nothing else on my report changed and it was FICO 8. 

[CyberChick]

Interesting. I have seen either no change or very small drop, like 3/4 points.