how does scoring work?

[Anonymous]

we are paying our collection accounts off... or I should say just did.. per advice from our LO, I now realize our scores willprob drop drastically since most of these accounts will re age. I also plan to go from 99% util on CC to 0 on most (9 cards total) and one CC with under 5% util. My totla CC debt was about $2700, not alot but huge for us.. so with that being said... we expect a drop in score from payying old debt.. bow much will the scores go up each months after we have paid the CC off? if we maintain the util of 0 on most and under 5% on one... what effect will this have each month for our credit scores? any ideas?

[Anonymous]

anyone have any advice?

[creditwherecreditisdue]

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bobnraven wrote:
we are paying our collection accounts off... or I should say just did.. per advice from our LO, I now realize our scores willprob drop drastically since most of these accounts will re age. I also plan to go from 99% util on CC to 0 on most (9 cards total) and one CC with under 5% util. My totla CC debt was about $2700, not alot but huge for us.. so with that being said... we expect a drop in score from payying old debt.. bow much will the scores go up each months after we have paid the CC off? if we maintain the util of 0 on most and under 5% on one... what effect will this have each month for our credit scores? any ideas?

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Once every TL has reported these changes the variation from month to month will be very very slight. There will be a very slow trend upward on your FICO's after that as everything ages. The benefit of UTIL improvements is obtained immediately and not eventually. Some (many) CBR issues take either time or extensive remediation (PFD/GW) to overcome.

[Anonymous]

so i have the final payments set to be made in two weeks... the first payments were made yesterday. Should I call and tell them to PFD or just cancel the payments entirely? Im so sick right now over this, LO said to pay these collection off.. so I do, now I find paying them off will most likely screw my credit scores... no one will PFD, so I budget on everything as tight as we can.. and try to pay off our CC's only to find out this isnt going to help much? why the heck did i do all of this then? Im just very frustrated here, sorry for venting. I guess I dont know what to do at this point..Ill have to just wait, which really really sucks cause we looked and found the house we'd like.. and now there no hope.

[Jazzzy]

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@Anonymous wrote:
so i have the final payments set to be made in two weeks... the first payments were made yesterday. Should I call and tell them to PFD or just cancel the payments entirely? Im so sick right now over this, LO said to pay these collection off.. so I do, now I find paying them off will most likely screw my credit scores... no one will PFD, so I budget on everything as tight as we can.. and try to pay off our CC's only to find out this isnt going to help much? why the heck did i do all of this then? Im just very frustrated here, sorry for venting. I guess I dont know what to do at this point..Ill have to just wait, which really really sucks cause we looked and found the house we'd like.. and now there no hope.

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I'm confused...have you approached these creditors about PFD? Do you think you could get any of them to agree?

[Anonymous]

yea i asked them all, i sent GW letters to everyone too. I havent heard from anyone! No CA would agree.. now im upset because the LO said if i paid them he get get the approval for us.. so we set up to pay them.. looked at homes.. now find that paying them will re age them and DROP our score.. and we wont get approval.

[AndySoCal]

You have two factors affecting your credit report. The positive one is the lowering of your credit card debt which will help raise the score. The possible negative affect is the reaging of the collection accounts.  One may help mute the affect of the other. I hope the proof your LO will need that the accounts are paid is a copy of the cancelled check or something like that and not a new credit report. These paid collection accounts could take 30 days to report to the bureau. Good Luck

Message Edited by AndySoCal on 09-12-2009 04:56 PM