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chris135

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why did my credit score go down 99 pts when i paid off two small debts that was in collections

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Top Contributor
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I know it sounds strange

That your score would drop when you pay off debt. But it sdoes happen. For some reason just the action of addressing these old accounts triggers something in the algoritiums that credit scoring companies use.  It was explained to me this way: The pay off of the old collections generally means people are trying to clean up their credit in order to get more credit. Lenders don't want to lend to people that had accounts in collections so your score drops so that you can't get new credit right away.  in my experience, Your score should start inching back up over the next couple of months. Do not apply for new credit,  Keep making your payments and keep accounts current and your score will rebound soon.

Good luck

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