Score Decreased.... Why?

[IMPROVELIFE]

Hey Fam,

I received an alert today that my score went down by 3 points today.  So when I got home I immediately logged into MYfico.com to see what was up.  It looks like since I have an old debt that I am making payments on, the amount owed decreases but I lost points (SEE TABLE BELOW) . hmmm.. Can't quite understand why this would happen.  I'm already in the low 500's w/ EQ I dont need another drop in my score, I am trying to REBUILD my credit. lol Can someone explain this to me?  THANKS IN ADVANCE 

Account opened: 4/2006
Description: Charge off account
Deposit related
Amount in high credit is original charge-off amount

	Previously reported	Newly reported
Balance:	$608	$439
Past due:	$608	$439
Status:	Bad Debt; Placed for collection;	Bad Debt; Placed for collection;
Last activity:	5/1/2007	5/1/2007
Description:	Charge off account Amount in high credit is original charge-off amount	Charge off account Deposit related Amount in high credit is original charge-off amount

[llecs]

Looks like SW alerted you to this change, right? First off, know that SW only provides a small hint as to maybe why your score changed, but that reason isn't necessarily why your score changed. It's very possible something else happened on your CRs (e.g. util is a likely culprit) that caused the score change. For example, I once got a SW alert that my FICO score increased 20 points because I added an inquiry. The inquiry didn't give me 20 but a dropped CA that SW doesn't alert for led to the score increase. Very likely, your util changed ever so slightly and that caused the drop. IMO, that alert alone wouldn't impact your FICO score.