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StormPetrel

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Equifax 76 pt drop, mortgage paid off, card debt reduced 27%, only old derogs, 1 challenged
In the past six weeks I have paid off my mortgage on schedule, with no missed payments over the 25 year term with BB&T, I paid more than 27% off my credit card debt, a week ago, and, with no new derogatories (only a few old ones which I am challenging )Equifax dropped my rating by 76 points, and Transunion by 43 points in a week, when the Credit Karma simulator said that my credit score should have gone up from "fair" to "good" following the reduction in credit card debt. During the past 6 weeks I also chaHow can I redress this? Do credit agencies exact retribution for challenging derogatories? Should I hire one of the credit services recommended by Credit Karma?

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Slow down. There is no need to hire a credit repair company, you just need to do some reading. Understand that when you pay off and close an account, your scores will be dinged, especially here as I don't believe Vantage scoring factors "closed accounts" into the "average age of accounts". Good news is, FICO scoring models do factor in "closed accounts" to the "average age of accounts". Even better news, most lenders use a version of FICO scores, so they are the ones that matter. Purchase them somewhere, myfico or Experian and see where you are with FICO. That is the scoring model that you should be aiming to please, not the model used here. Keep paying down your credit cards and if you currently have no open installment loans being reported, consider opening up a small installment loan to take the place of the one you just closed. Amount of loan doesn't matter, just make sure that it would be reported to all three credit bureaus before applying. Of course you will get your credit dinged again for opening the new loan, but it would be a necessity for the long term. Start reading everything that you can about credit, it will benefit you greatly.

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And no, the credit bureaus cannot come after you to punish you for filing a dispute. Sometimes filing a dispute can cause a dip in scores because if the account hasn't updated for a while, the recent update will look new to scoring systems. The bureaus are not allowed to punish you for disputing items on your reports.

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