FICO Score Dropped 20+ points on paid account?

[Anonymous]

Hey Folks, I was wondering if anyone had some insights for me.  I had a 609 earlier this year, but used the FICO estimator to determine that my score would jump if I paid off an old Capital One tradeline.  I did that and my score jumped to a 662.  Great! But, then another credit card reported a balance mid-month and my score dropped a bit because of utilization. that I understand and can address by next month.  

My real question is that yesterday I got a notice that the now paid off Capital One tradeline was updated again with equifax, and that is when I experienced a 25 point drop in my FICO EQ score.  From what I can tell, the only two items updated to the tradeline were the balance went from 0 to "nothing", literally there's no balance listed now.  And, the second update was the description went from Paid Charge Off.  To Charge Off Account.

UPDATE: I also noticed that the 90+ days late moved from a previosly report 30 times, to a whopping 71+ times.   I suppose this could be the main factor?  

 Has anyone else experienced something like this?  Can a change of description bring down a FICO score? Should I be worried about the  account balance being blank vs $0? What kind of update could happen on a paid charge off account that would raise the score, and then drop it so suddenly?  I'm really confused.  What is the relation of a charge off account and a 90+ days late moving from 30 to 70? 

 Thanks for any feedback you have.  Happy to provide more details.  

[Anonymous]

From what I am reading, it isn't that you paid off the account, it is they updated the late payments on the account.  And yes, that is why your score dropped.

When you initially paid the account, the reported balance was forever removed from your utilizaiton which is why you probably got a small bump.  Then when they added all the additional late paymets it caused your score to drop.

When the OC still owns the account they can report monthly lates until paid.  If they hadn't been doing that and then suddenly did, that is where the other lates came from. 

The CO itself is scored separately than the lates so technically there is no relationship between that and the lates being reported.

[Anonymous]

is there anything I can do to get my score back to the level it was before Capital One reported the additional late fees.  I'm super disappointed.  I was in a great place to qualify for a mortgage before those additional lates were reported, and now my score are back where they were when I hadn't even paid this debt.  Do I have any next steps that could counter the 70 90+ days late are now weighing down my equifax score.  None of my other reports are showing this many late payment, but all of them now reflect much lower scores than when I first paid off the account.   

[Anonymous]

And, thank you so much for your reply! 

[Anonymous]

If the lates are accurate about the only thing you can do is send good will letters asking for there deletion.

How old is the account?  What is the DoFD?

[Anonymous]

Hey Folks! So,  I opened a Capital One card in 2006, and it was charged off in 2007.  I let that account sit, but recently paid it off to help my credit score.  This worked, and my score jumped to high 600's.  Unfortunately, Capital One updated my account a second time, only for Equifax, and logged a whopping 71 late payments.  However, some of these payments occured well after the charge off.  They also removed the $0 balance and left that field blank.

I'm reading mixed information here, some say that once an account is charged off, there can't be late payments because it is closed.  This account doesn't have any late payments records with Transunion and only 30 listed with Experian.  My Equifax is now my lowest score at 609, which is a bummer.  

What should be my next steps? Do I have any resolution through disputing this? Or, talking with Capital One?  Thanks in advance for your advice.

James

[Anonymous]

OP, I merged your post with the already existing same question.  Please do not post across different boards.

Yes, they can add lates if they still own the debt until the debt is paid.  Closed means it is closed to your use, not the same as paid and closed.  A charge off is an accounting term only of the status of the

[Anonymous]

I wanted a different opinion.

[Anonymous]

You can always ask for more opinions in the same post.

It is not allowed to cross post.  Thank you for your understanding.

To clarify,. if the OC still owns the account lates can be added.  If it was sold to a CA then the OC cannot add lates past the day it was sold as they no longer own the account.

[Anonymous]

I am about to explode with information overload....I have the same question and just like the OP, based on modeling , My EX FICO score will jump to 664 if i pay off (settle ) an old deliquent credit card.

I just want to get this out of the way.btw Found this link very useful 

https://www.youtube.com/watch?v=md1ZAFWPN1Q

Date of Last Activity: Credit Report Secrets

http://rfordin.hubpages.com/hub/DOLA-Date-of-Last-Activity-Credit-Report-Secrets

Starting Score: EQ: 576 - TU: 632 - EX: 615 - 12/20/2014
Current Score: EQ: 635 - TU: 662 - EX: 619
Goal Score: EQ: 700 - TU: 700 - EX: 700