Amex Settlement / Zwicker / 29 Point Drop...

[Anonymous]

I had an Amex charge off back at the end of 2016 for around 50k.  In November 2019, I made the decision to enagage with Zwicker to pay off.

I chose the option to get a new Amex with same number, restoration of points, etc if I pay in full within 24 months.

Made a 6k down payment.  When Amex updated the amount owed, my credit score dropped by 29 points.

- Is this due to 'reactivating' the debt?

- Can I assume that once this is paid off, and they reintate my charging privledges that my score will jump back up?

Thanks...

[silver_idle]

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@Anonymous wrote:

I had an Amex charge off back at the end of 2016 for around 50k.  In November 2019, I made the decision to enagage with Zwicker to pay off.

I chose the option to get a new Amex with same number, restoration of points, etc if I pay in full within 24 months.

Made a 6k down payment.  When Amex updated the amount owed, my credit score dropped by 29 points.

- Is this due to 'reactivating' the debt?

- Can I assume that once this is paid off, and they reintate my charging privledges that my score will jump back up?

Thanks...

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It could be due to it being updated since it was CO back in 2016 with no further changes or updates to it (other than it reporting to the CRA). Once its paid off it should bounce back up abit but age and any positive payment history will your score as the derog history gets older.

[Anonymous]

Yeah it’s because it was updated. Did they agree to drop the negative history upon re-payment?

[sjt]

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@silver_idle wrote:

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@Anonymous wrote:

I had an Amex charge off back at the end of 2016 for around 50k.  In November 2019, I made the decision to enagage with Zwicker to pay off.

I chose the option to get a new Amex with same number, restoration of points, etc if I pay in full within 24 months.

Made a 6k down payment.  When Amex updated the amount owed, my credit score dropped by 29 points.

- Is this due to 'reactivating' the debt?

- Can I assume that once this is paid off, and they reintate my charging privledges that my score will jump back up?

Thanks...

---

It could be due to it being updated since it was CO back in 2016 with no further changes or updates to it (other than it reporting to the CRA). Once its paid off it should bounce back up abit but age and any positive payment history will your score as the derog history gets older.

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Amex usually reports monthly, so that is unlikely the case.

[sjt]

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@Anonymous wrote:

I had an Amex charge off back at the end of 2016 for around 50k.  In November 2019, I made the decision to enagage with Zwicker to pay off.

I chose the option to get a new Amex with same number, restoration of points, etc if I pay in full within 24 months.

Made a 6k down payment.  When Amex updated the amount owed, my credit score dropped by 29 points.

- Is this due to 'reactivating' the debt?

- Can I assume that once this is paid off, and they reintate my charging privledges that my score will jump back up?

Thanks...

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Once you get it to zero, your score should bump