Paid CO but no score change - WHAT???

[Anonymous]

OK, so I am really confused and aggravated now with this scoring!

I paid a CO last month, $1052 with the OC and it will fall off March 2016.  However, 1 this is the one that has the longest to sit and #2 it was direct with the original creditor and I wanted to hope to get back in someday.  So I chose to pay this now.

Well, it just hit the bureaus as PAID...................NO SCORE CHANGE AT ALL.    WHY????????????????

I don't understand at all a tthis point.  Paid a old collection on hubby that was a miscommunication with he company for $110 and he jumped 40 points.

Why didn't this CO paid change my scores signicantly???  #1 was reporting monthly jurting me and my utilization as shown as balance due.  Now 0 paid in full.

I did notice it says it is 'Disputed' - does that mean it won't count on my scores at all or doesn't show ???

Really frustrated and confused with this.

Thanks for any available insight FICO Forum!!  Why pay any at this point if it isn't going to matter a hoot.

[Kathy4NU]

Paid or not paid it scorces the same.  Seems unfait.  I know.  But FICO doesn't care if it is paid or not.  The fact that it is there is what hurts.   I have actually seen where once it is paid it takes points away because of new activity.    Would they not PFD?  Maybe you can start goodwilling it ?

[Anonymous]

Uggh.

Thanks......no it was Discover and they will not PDF or do a courtesy early delete either.  

[Anonymous]

It's certainly a bummer, and frustrating, but as already mentioned, the damage gets done when the account goes late/to charge-off. It takes a while to get to that point, hence, 60/90/120 day lates hurt a lot more, and for longer, than 30 day lates. 

Look on the bright side though:

1. The update of a negative account with recent activity didn't hurt your score (which sometimes happens; some creditors will keep updating monthly, even if there's no change in status, and because it was recent "activity" on a negative account, it suppresses your score. This can be a reason why some people who are rebuilding see slower growth than others - it's dependent on the creditor's reporting frequency.)

2. You only have a year before this falls off. It's not like you're starting at square one. I'm still probably facing 7 years before I see real growth due to a tax lien reporting.

3. You've re-established some measure of goodwill with that creditor by paying it off instead of completely burning them. It's a calculated move in order to eventually have a relationship with them again. This didn't happen overnight - based on the fall-off date, this account was sitting negative for 6 years. The repair isn't going to happen overnight either.

Think of it as you would think of an investment, where you're forgoing spending money now in order to have more of it later. Sometimes, you have to accept that you have to let go of instant gratification (score boost) for bigger dividends (better credit) down the road.

[Booboo71]

Same thing with me I had a First Premier card that I defaulted on May 2010 I payed the $485 but missed Aprils deadline to update for April. I feel so much better I payed them I did owe it, but what was killi g me was the last 6 months they kept updating it on my reports and it was holding me back. 1st premier will not remove it but ut is what it is and I know now its done and paid! So to the OP I feel your pain!