Score Continuing to Drop Despite Paying Off Debt!!! (Update Score Going Up!!!)

[MattieNumNums]

Well Sallie Mae is up to their old tricks. I was in the student rehab program and part of that is they removal all negatives and your account is paid in full because of consolidation. Sallie Mae decided to update all my records with Paid Through Insurance or Settled and all the derogs are still there. My score dropped drastically to 574 and 603. I hate Sallie Mae. They got their money why are they doing this!

[Booner72]

I'm sorry about these [Edited].  Which is what they are.  They are reporting two separate 120 lates (07) (08).  I was never late.  Luckily I was able to pay off the loan by going to DirectLoan's IBR PEFP.

I disputed this last year and it came back verified.  I know I wouldn't have qualified for DirectLoan if these loans weren't up to date.  Faxed  a GW last week.

I hope you get this straightened ou!

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Let's keep things g-rated please. Thanks.

MarineVietvet, myFICO moderator

[MattieNumNums]

Well I decided I would just pay that last student loan off. Settled it with Sallie Mae for around 60% of the balance. Lets see how long it takes them to update this.

Wow my report is going to be very different here in the next 2 months. A paid off car, a new car lease, 3 paid student loans. All of my open accounts are now current and in good standing. I am pretty sure that the 574 and 605 will jump. Hopefully mid to upper mid 600's!!!!

[Anonymous]

Can you confirm...

Paying off collections accounts will not increase my score? 

I have a 2008 account $462.  

Will paying it off help?  

Thanks

[llecs]

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@Anonymous wrote:

Can you confirm...

Paying off collections accounts will not increase my score? 

I have a 2008 account $462.  

Will paying it off help?  

Thanks

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Paying off collection agencies will not help your FICO score. Paying off non-CC charge-offs like utilities, loan, and similar items won't help either. However, paying off charged-off CCs can help in some situations provided your utilization improved as a result. The impact from the charge-off would remain though.