My Score Dropped 30 Points!

Anonymous · ‎05-21-2008

I paid off an old account and my score dropped from 589 to 559! They changed the balance from $602 to $0 and changed the status from Charge Off to Paid Charge Off. This was the only change to my report and ScoreWatch reported that the score change was a direct result of that account change. Can anyone help me understand this? Thank you in advance!

Anonymous · ‎05-21-2008

PS. I should add that the creditor reported to TU and EX but EQ originally did not change. I used the online dispute to get them to update the status. Could this be why?
They emailed me to say that the dispute was resolved in my favor and that they changed the status per the creditor.

AAARRRRGGGGHHH!

llecs · ‎05-21-2008

I would pull that FICO report to look for other changes. Recently I got a SW alert for 20 plus points. It said it was due to an increase in CC balances. Nooooooooo, CC balances increasing didn't cause the increase, but rather a baddie that dropped off that SW didn't see. SW doesn't catch everything.

RobertEG · ‎05-21-2008

The old account was apparently a collection, since you said it was a chargeoff. The account behind the collection may have updated its derog dates from the payment date of the collection, thus making the derogs count more. Just a guess, but paying off a collection does not eliminate the account history upon which it was based. I would suggest that you go back and look at what the account behind the payoff is now showing.

Anonymous · ‎05-22-2008

No it was not a collection. It was the original account from the original creditor. Does that make a difference?

Anonymous · ‎05-22-2008

And I pulled a new EQ and that was definitely the only change from last month! ???

I have one more collection that I will be paying off today (NCO so no PFD)

and a LARGE judgment that I will be paying off next week and then all of my baddies will be taken care of.

If the trend continues, I will have a 400 by the time I finish paying off these accounts.