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mewise36

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I Paid off all of my collection accounts and my score dropped 150 points?!?
about 2-3 months ago I started paying off all of my collection accounts, and now they are all at a zero balance. I had to file several disputes before they all changed to a zero balance. During this whole process my score was going up steadily and I was feeling extremely encouraged. But now that the collections are all paid off and my only remaining credit card is paid down to 80% utilization (previously 107%) now my score has dropped about 150 is the past 2 weeks. Anyone have any idea what might be going on? The only other things I have are my mortgage (on time payments for 26 months) and my student loans (on-time payments for 10 months.) I have tried calling Transunion and Equifax and they are no help. My calls are always routed to call centers in India and they are extremely rude to me. I would appreciate any advice.

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When you paid the collections and the balances went to zero that means that the collection accounts all updated and that can look like new collections to scoring systems. I believe this may be a potential cause. Work on getting the utilization brought down to less than thirty percent on your credit card. After a month of doing that, purchase your FICO scores somewhere and see what they are showing. It is important to know what they are. Understand that it can take some time for your scores to recover, but they will. As the negative info ages it will cause less damage and eventually when it falls off your reports things will really brighten up for you. Keep working as you have been, be patient and remember it takes time.

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