Paid collections and score drops..

Anonymous · ‎04-05-2018

Hi, I’ve been trying to rebuild my credit and a few weeks I paid off 4 medical collections and one bank loan that has always been paid on time. I have also reduced my revolving line of credit by 100.00. All the collections have all been deleted from my credit reports. The loan says pays as agreed/ paid in full and reflects a zero balance. The line of credit shows a lower balance, from 500 to 388.00. My credit is already poor and now I’ve lost 12 points on my equifax report, but no change on the other two.

This is very depressing because I was expecting a score increase but lost points instead. What am I doing wrong?

thornback · ‎04-05-2018

Was the loan your only installment account? If so, paying it down to zero and thus, closing the account, eliminated your mix of credit. Credit mix makes up 10% of your FICO.

Personal Aphorism:"Forget What You Feel, Remember What You Deserve"

Starting FICO 8s | 09/2017: EX 641 ✦ EQ 634 ✦ TU 647
Current FICO 8s | 04/2022: EX 796 ✦ EQ 793 ✦ TU 790
Current FICO 9s | 04/2022: EX 790 ✦ EQ 788 ✦ TU 782
2022 Goal Score | 800s

My AAoA: 4.6 years not incl. AU / 4.9 years incl. AU
My AoOA: 9.2 years not incl. AU / 11.2 years incl. AU
Inquiries: EX 0/12 ✦ EQ 0/12 ✦ TU 0/12
Report Status: Clean
Garden Status:

Without patience, we will learn less in life. We will see less. We will feel less. We will hear less. Ironically, rush and more usually mean less.

gdale6 · ‎04-05-2018

No open instalment loans typically costs 8-17 Fico 8 basic points. How many revolving cards do you have open and balances to credit limit too pls.