New Credit Remark Lowered Score

[Anonymous]

I disputed a paid account which is marked as a "Paid - Charged Off." I received a current credit report in the mail from TransUnion "per my request." I didn't request the report. The account is paid in full!

Today I got an email alert and my "Trans Union" account for the disputed card stated I have a new remark - "Canceled by credit grantor."

My TransUnion score plunged 72 points, now 97 points lower than Equifax. How can a remark, particularly on a paid account, cause this drop! I was getting prepared to apply for a VA mortgage at the beginning of the year but now that dream is gone!!

[Anonymous]

I am not an expert in derogs.  Some people here are and they may well be able to help.

In order for them to help you best, here is some stuff they would be good for them to know.

(1)  The name of the creditor.

(2)  Whether the account was revolving (credit card, charge card, etc.) or installment (loan, finance company account, etc.).

According to the credit report...

    (3)  What was the date opened?

    (4)  What was the date closed?

Do both of those dates seem right to you?

What is your memory of the history of this account?  In your memory, did you ever miss any payments (or be late with any payments) with this account?  If the account was closed, who closed it -- you or the creditor?  Why?  When the account was closed, was the balance $0?

At sounds like at some point you disputed something about this account with TU.  When did you submit that dispute?  What exacty did you say in your dispute was incorrect about the way the account was reading on your TU report?

How exactly did the account read before the dispute and how exactly does it read now?

[Anonymous]

Thank you for replying. Here is all the pertinent information I have from a TransUnion credit report received last week.

Capital Bank

Opened: 07/25/2012

Revolving Account/Individual

Credit Card (Secured)

Last Dated Updated 04/15/2015

Payment received: $154.00

Last Payment Date: 03/26/2015

Original Charge-Off: $154.00

Pay Status: Account Paid in Full; was a Charge-Off

Terms: Paid Monthly

Date Closed12/31/2013

Date Paid: 03/26/2015 - Maximum Delinquincy of 90 days in 12/2013

High Balance: $404.00

Credit Limit: $250.00

Estimated Month/Year time of removal: 09/2019

This account was established and paid online. At one point they were changing their entire website so I was delated in payment. I requested a paper statement in lieu of these changes and never received one. At one point, my email which was part of a web domain server was removed and all records from me to Capital Bank were lost.

I have written correspondence trying to correct this but I was always sent boilerplate letters. I let sleeping dogs lie until the last few months when I decided to purchase a home with my VA benefits. I've been building my score the last few years so I was ready to go. I tried once again to dispute the Capital Bank problem in the last two weeks. Then I received an "Alert" of a change one week after TransUnion responded to my dispute with a fresh credit report.

This "Alert" and huge score drop have me in disarray. It's a disaster and I can't find any information that a remark could have this effect. Nothing else has changed - I went back to older credit reports and verified the Capital Bank information. My utilization scores are all under 8 percent, I have a good history exluding this new change.

[Anonymous]

Best of luck with this.  Like I said I don't have much experience with derogs, but other folks here do.

Giving them more info like this will help.  So sorry you have run into this trouble!

[JLK93]

While your account was in dispute, it wasn't being scored by FICO.

Once the dispute was resolved, it was included in scoring.

Maybe that is why your score dropped.

[Anonymous]

As I stated, nothing ever changed for the aforementioned credit card. The score never changed, the latest credit report that TransUnion sent me did not have the remark "Canceled by credit grantor" on it, the previous one had nothing in "remarks."

By the logic TransUnion is using, adding a remark lowers one's score a remarkable 72 points. This is beyond reason or logic. The account is marked under status as "Closed-Paid." Also, no amount is past due.

This remark appears why? Because I questioned the nomenclature concerning the charge-off and paid? My only recourse may be using an attorney or my State's consumer affairs. As far as my VA loan, time is of the essence and my other two credit reports are exemplary.

[JLK93]

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@Anonymous wrote:

My TransUnion score 

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Removing the remark won't change for FICO score.

Is this a FICO score?

[Anonymous]

Sounds like FAKO behavior....Since you refer to just Transunion and Equifax (no Experian) scores, I have the feeling you're using Credit Karma. They use the Vantage Score 3.0 scoring model, and is not a FICO score, nor is it one that is found to be used much of anywhere. Also, their reports are not always accurate to what the actual Credit Bureau has reported, either.

Since you mention about getting a mortgage, you'll want to know your FICO mortgage scores to really know where you stand. You can get them on this site when you buy a 3B report or subscribe to the monitoring service. I'm not saying it isn't possible your score went down, I'm saying you may not really know where you're at to begin with. Best of luck to you!