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@Anonymous wrote:
I filed an immediate dispute, to simply have the score fixed immediately.
Sorry but there's nothing to "fix" - your score dropped becuase you had an installment loan account PIF and closed, I assume it was your only installment loan, and thus your credit mix was lessened. A large part of your score is the credit mix that you have. I know it doesn't feel right but a dispute is used to correct info on your credit REPORT not your credit score - you did not note that anything was incorrect on your credit report thus nothing to dispute.
In terms of this being temporary, yes, in a sense it is. Your score fluctuates possible on a daily basis but it is unlikely that it will jump by 50 points anytime soon without an equivalent change in your report - getting those maxed out cards paid down could do the trick.
@Anonymous wrote:
Btw, speaking of a score dispute, is there a process somewhere where one can indeed file a complaint over a score change? Not regarding this case (I'll see about canceling said dispute I guess, or just wait it out) but in the future?
There is no such beast, said score dispute. A dispute is referencing data on your credit report, not that you may disagree with how your score is calculated. You score is determined by an algorithm - data from your credit report goes in and and a credit score comes out. The algorithm is proprietary, it is owned by the company providing your score, and there is nothing "wrong" or "right" with it, it just is what it is.
Now, while you can't dispute your score you could, under the right circumstances, sue FICO for, say, a flawed scoring methodology, show damages, and then let the courts decide. It's been done before.
FICO treats installment loans and revolving credit (Credit Cards) differently. FICO likes you to have an open installment loan on your reports and gives you points for having one. Close the loan, lose the points. FICO doesn't like you to use much of your revolving credit and will nick you points for it.
You want to end up with 1 credit card reporting a balance of less than 10% of its credit line and all the rest of the credit cards reporting $0. You NEED to have one card reporting a small balance! If all your cards report $0 your score will actually drop. In my case if all my cards report balances of $0 I lose 18 points.
Use the snowball method to pay off your credit cards. Pay the minimums on all the cards except the card with the smallest balance. Put any extra money towards the card with the smallest balance until it is paid off. Rinse and repeat. For every card that you pay off to $0 except the last card, you will gain points.