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gshinkle

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Why did my score drop after having a charge off removed?
At the end of 2014, I got a job at a bank. Because of this new job (and the employee perks of banking there), I opened an account with them, leaving nothing in my old account, which was with a credit union. Because I really liked this credit union, I was hesitant to just blatantly close the account because I didn't want to totally sever the relationship. Big mistake. I have automatic payments for most of my bills. Despite having paid them all manually until they processed my new bank account, a couple of them still tried to take the money from my old account. Since there was no money in it, the credit union blocked the transaction and charged me a fee for each attempt. Each institution tried 3 times. I noticed it after the first attempt and called both, but both gave me BS responses - "sorry, we can't stop it, even though you already paid us." This caused $150 of fees through the credit union. I was fighting with these 2 institutions for almost 3 months, calling and speaking with different people each time. I felt that they should put the fees they caused back. I finally got one to agree to do it. However, by this time, they had already charged off the $150. They claimed to have sent me letters that this was going to happen, but I never got squat in the mail for this. They also claimed they tried calling me, except I found out that when I updated my information a couple of months prior, the woman at the branch never put in my new phone number. So I got screwed over by multiple people. I learned my lesson about not just closing the account, that's for sure.

The charge off occurred on the last day of February in 2015. My boyfriend and I were wanting to buy a house this year, so I figured I'd give it a shot to get this removed from my credit report as it was the only negative mark on there (despite my crappy credit utilization that I'm working on). I wrote a letter to the credit union and they agreed to remove it. I was anxiously waiting for it to drop off to see if my score would increase. I logged onto Credit Karma today only to find that my score has somehow DECREASED by 14 points! Thinking something else was wrong, I scoured my credit report, checking all of my accounts and everything. The only change was the removal of this charge off. After buying my car last year, my score dropped by a whopping 40 points and I had been working to get it back up and now this? Why would getting fairly new negative information removed from my report cause a drop?? What gives?

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