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

[LS2982]

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@MattieNumNums wrote:

My damn score dropped again today. I called MyFICO and they were NOT helpful at all. I disputed 3 accounts showing up as delinquent and they were updated to paid. My score has dropped almost 60 points in 1 1/2 months and all of my negative reports minus 2 are paid and in good standing. The credit system is a joke and a fraud. I've done everything I can and my score keeps going down and I get NO answers. All I get it the same recanned bull answer of well scores change. No crap someone tell me right now why my score has gone down when things are paid. I'm so frustrated. I've spent close to 10 grand getting out of debt and I was in better shape before I started this worthless journey. I kept telling the phone rep that this is only happening on Experian and that my Transunion is fine but she continued to ignore me.

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Right there is one of your problems. A collection does the most damage if it is recent. Say if those unpaid collections were 6 yrs old, you just paid it off, it updated, now it is updated as paid on TODAYS date making it recent. The fact that its on your CR still and updated as recently paid hurts your score.

[MarineVietVet]

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@LS2982 wrote:

Right there is one of your problems. A collection does the most damage if it is recent. Say if those unpaid collections were 6 yrs old, you just paid it off, it updated, now it is updated as paid on TODAYS date making it recent. The fact that its on your CR still and updated as recently paid hurts your score.

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This doesn't apply to collections. :

Collections are scored off the date of assignment, not the DOLA. A change in DOLA shouldn't affect the score. .

This is such a common belief that we're trying to find examples with before-and-after reports where it happened, in order to see what's going on. If either the CA or the CRA is handling the data incorrectly, it needs to be corrected.

Here's a thread discussing this: Settle or Pay in Full?

Again, I'm not saying that it doesn't happen, but it's not supposed to, if the CA is reporting correctly and if the CRA is putting the info into the correct data fields.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[MattieNumNums]

Truth. I paid off a collections and 3 months later it fell off due to being over 7 years old.

[MattieNumNums]

A new credit card I recieved about 3 months ago posted to my credit report today and dropped my score 8 points

[Anonymous]

That's pretty normal.  The plus in your case is that it was already 3 months old when it first reported.  Nice!

[sobreezy]

Others have said it previously but I wanted to say it again please don't give up.  I would like you to try to send out GWs to get some of the paid collections removed.  Also try to ensure that you keep your actual balance around 1-9% of your CL.  And be patient, it took you years to build a CR and score such as what you have and it will take time to improve it.  There are tons of GW examples all across this board but here is a link to some that have worked for others.

http://ficoforums.myfico.com/t5/General-Credit-Topics/Frequently-Requested-Threads/m-p/10675

Also check out some of the other threads listed in the above link.  I know that this will help you.

[MattieNumNums]

Im not giving up now. I saw the light. This whole expirience has made me a better person financially. My credit scores are in the low - mid 600's, I opened up a Roth IRA, I am contributing more to an emergency fund, taking this head on. I really feel like once I am in the 700's my financial life from here on out is going to be well planned. I just need to execute.

My next goal is to be able to get a house. I'd love to be able to buy a house in this market especially where I live. Housing is at an all time low.

[MattieNumNums]

Yeah I figured it might drop a  litte; new account + lowering my average account life. I am hoping in a few months it will contribute positively. I am really hoping that my paid off car + new lease + new credit card will get me to my next goal of 660 (puts me in the mortgage bracket I want to be in.) With the amount of rent I pay buying a house will actually save me money!

[Anonymous]

This DID happen to me. I found a medical collections on my record from 2004 or 2005 (I think 2004. Trying to remember exactly when my miscarriage was because that's what it was from.). I paid in January 2010. Now it shows updated to 2010. Paid, but still makes it look like it was recent, even though it was from 2004 or 2005, I cannot remember. Truly, although I am glad that I paid it because it was rightfully mine, I am not glad that I paid it, too because it makes me look like I am negligent recently and I am not.

[MattieNumNums]

Edited. Make them update it. These collections companies seem to think that everyone they deal with is a dead beat. When my grandmother died we lost everything because she was sick for almost 7 years. Collections companies don't give a damn and they will **bleep** you on your credit report unless you stay dilligent about checking them. Edited.

Advocating or suggesting the disputing of accurate info violates our Credit Repair Discussion Guidelines, Terms of Service, and User Guidelines that prohibit the promotion of certain types of credit repair. - llecs, myFICO moderator.