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Posted in Paying Your Bills
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Question By
DaNita3

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0 People Helped
Score drop from paying off debt
I paid off a debt that was $1000. Then my screen dropped 54 points! Anyone know why it would do that?

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Score drops, history remains

Helpful to 167 out of 240 people

This is the problem with paying debts in collections. I never tell anyone not to pay an actual debt, but I do advocate that a person should get an agreement in writing. Without it, if youbpaybit the history is still reported. And even is closed it will still report from last date. So it will be there a while, and lenders looking can find it instantly.

Read up on the FCBA, some helpful links are found in the law. I recommend wiki search, or some other non affiliated engine.

Cheers

Reply by
mgrant91

1 Contribution
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Helpful to 12 out of 12 people

What type of agreement should I get in writing because my oldest collections debt is from 3 years, and where do I get the agreement.

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Dont pay collections

Helpful to 64 out of 115 people

Yes, I agree my credit repair company told me  not to pay them. Usually they would help you get them deleted first and then tell you to pay. 

7 Contributions
49 People Helped

collections/charge offs

Helpful to 16 out of 18 people

if it was an old debt like collections or charge offs, paying it will re age the debt. As a debt gets older it has less of an saffect on your credit score but if you pay a debt, the date of last activity updates and will hurt your score, unless you get a pay for deleted but make sure you get it in writing before doing anything. 

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Reply by
love14mr38

143 Contributions
179 People Helped
Helpful to 5 out of 5 people

The one principle I have learned that when the debt collections start receving monies from us. Then the debt collections will star repeorting to your credit bureaus for the next 7 years and that debt will stay on  within the additional years. Letting it ride out, it eventually will drop off in the 7 years with orginal debtors. My suggestions are if the debt is in collections let it stay. The IRS will pay the debt collections for the debt, so yiu paying they are receivind double monies. But the choices are up to each ONE of US!!!!

1 Contribution
6 People Helped

why does your score dro

Helpful to 6 out of 7 people

I to would like to understand why does your score drop when you pay off your credit cards.

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Reply by
love14mr38

143 Contributions
179 People Helped
Helpful to 1 out of 1 people

Because  we are not replacing a bill with what has been paid off. The world system wants the USA CITIZENS in DEBTS like the USA. The businesses arevery lient when we go and try to purchased something with payments. They will tell us we do not have any credit, becasue your Credit Score is VERY LOW. They will always say: "We can't help ypu, becasue wedo not have a HIGHEST enough CREDIT SCORE to take a chanceon us. Chexk it out and see what they tell us. When we pay a BILL OFF, the SCORE will DROP. We need to know WHY it drop??? When someone find the answer, PLEASE POST for US to READ!!!!

1 Contribution
10 People Helped

MEDICAL BILLS IN COLLECTIONS I JUST PAID

Helpful to 10 out of 14 people

I just paid off 6 medical bills that were in collection the oldest was like 5 years old . and my creidt score dropped 46 points. WHY??? I also paid my credit cards on time actually i paid them down. i also had my name removed off of a credit card . still dont know why my score dropped drastically.   

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Reply by
love14mr38

143 Contributions
179 People Helped
Helpful to 1 out of 1 people

The USA we live in expect us to keep credit cards, medical bills, car payments, mortages payments, and all other credit bills over our head. But when we pay them off, the businesses get UPSET, that can't collect from us any more. I agree with your statement.

1 Contribution
5 People Helped

Debt Pay off

Helpful to 5 out of 7 people

Try to never pay off the debt that is the oldest. When you pay it off, it leaves your credit report, then your credit drops. Your history went with it. It might be bad history, but its your history. I had 8 or 10 bad things on mine. It said my credit history was 10 years. Nothing but bad history. I owed this, and I owed that.... When those dropped of my credit, it now says my history is 3 months. It went away too.. My credit score dropped as well....  :-(

1 Contribution
4 People Helped

Collection bills

Helpful to 4 out of 5 people

How can a credit card be closed and another person buy it out . And take and garnish your your check.

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Reply by
love14mr38

143 Contributions
179 People Helped
Helpful to 1 out of 1 people

When the CREDIT CARD  is CLOSED, the company where the credit card was given from will sell it to another entinity for them to  try and get money TWICE out of US. Then the company that brought the Credit Card Accounts, they file tredit for the heir TAXES and they get credit and they writw it off as BAD DEBT and the IRS will give them CREDIT. When the call or write us, they are trying to COLLECT TWICE on the ACCOUNT. The FTC told us a consumers,  watch out for this double standards by debts collectors. They have been given credit and many times Paid a Refund for these as they call them "Bad Debts". The credit card company has gotten credit and paid for "BAD DEBTS". Actually they have gotten paid TWICE. Debt Collectors & Credit Card Company. I was an Accountant Clerk and knows the game.

1 Contribution
1 Person Helped

Closing an act?

Helpful to 1 out of 1 people

If you closed any accounts, then available credit diminished. That might be a cause for score to drop. 

Has that pay off been acknowledged? If not, give it time and score should reverse. 

1 Contribution
1 Person Helped

Payoff (3-4) Debts

Helpful to 1 out of 2 people

I only owe a  less than $2,000 total in bad debts., How do I pay off this and how quick would it raise my score?

I have one car loan for 2-1/2 years and never missd a payment, does this help raise the score?? Can I go to an outsourece / legal firm to do this or pay them direct?

Thanks,

KJAYB

Top Contributor
17207 Contributions
5139 People Helped

Helpful to 3 out of 6 people

Depends on the debt, which only you can see here.  The details are covered in the articles on this site., '

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