My fiance and I have been working really hard to repair our credit. He recently paid off the items that he had in collections and all payoffs were reported to the 3 credit agencies; however, when he printed out his report, his score had dropped! We checked for any signs of identity theft on the report, but we didn%26#039;t see any. What could cause this to happen? We%26#039;re so discouraged!
What would cause somebody%26#039;s credit score to decrease?
What happened is that you paid the collections with out seeking removal from the credit report.
I am sure if you look at the date of last activity on these collections, they will match the dates your payment was processed.
Paying collections with out removal is detrimental to your credit score. The date of last activiy is renewed, the 7 year clock starts over and the end result is a drop in your credit report.
What would cause somebody%26#039;s credit score to decrease?
if you check your credit score a lot or have some other company check your credit , your score goes down.
What would cause somebody%26#039;s credit score to decrease?
Late payments, High card balances, Too many in-store cards
Fines that add up
What would cause somebody%26#039;s credit score to decrease?
Everytime someone checks your credit, your score drops, when you apply for anything and they check on you it goes down.I am going through the same thing, work hard and nothing changes
What would cause somebody%26#039;s credit score to decrease?
just checking your dredit often like using the free Internet credit checking appling for any types of loans
What would cause somebody%26#039;s credit score to decrease?
Checking your own credit does not affect your score, that is called a soft inquiry. When A company checks your score that is called a hard inquiry, it does affect your score. The reason your score probably dropped is that when he paid them off the date of last activity changed. Which can start the 7 year reporting all over again. Also sometimes it does not pay to pay off old collections. Sometimes you can get them to agree to a pay for delete, where if you pay in full they will remove it from your credit.
Also don%26#039;t rely on the score that the credit agency such as Trans Union gives. These are not accurate. The one that most lenders use is the Fico score go to myfico.com to get your real credit score. The difference in a fico score or a Trans Union score can vary as much as 50 points.
What would cause somebody%26#039;s credit score to decrease?
Good for you for doing the work to repair your credit BEFORE you wed: your work now will prevent money issue strife during your marriage.
This score drop upon payoff happens to more people than you think. One common way to do it:
If the collection items were rather old and had been left alone for a few years, they were aging and losing their ability to hurt your score. By paying them off, you brought them from the past into the present, and the scoring formula gives them heavier weight: they weigh more as paid-in-the-present than unpaid-in-the-past. You%26#039;ll get your points back slowly. Check that the debts weren%26#039;t illegally re-aged by the collection agent (CA) when your payment was reported to the credit reporting agencies. You can make sure that the age of the debt is the date of charge-off to the first collection agent, which is usually 180 days after your DF first became delinquent. Thus, this collection - along with the original creditor%26#039;s - tradeline should fall off your credit report at 7.5 years after first delinquency and 7 years after charge-off. If the delinquency went through charge-off to collections, the original creditor%26#039;s trade line must show a balance of zero. At most one positive balance per debt at a time.
From illegal re-aging, you have protection - and the ability to sue - under the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. Go to http://ftc.gov for more.
One other point: if your fiance settled with the collection agent for less than the amount owed, he owes income tax on the savings between the amount of the bill and the settlement amount. If it%26#039;s over $600 in savings, the CA must send him and the IRS an IRS form 1099-C and list the savings, and your fiance must report it as federal and state income and if necessary, pay estimated taxes on it soon. Source: 2006 IRS Publication 625, under %26quot;Cancelled Debt%26quot;. http://www.irs.gov under Forms and Publications. I%26#039;ve seen the IRS bills to people for back taxes, penalties and interest approximately 3 years after paying off a settled debt. Speak to your accountant.
What would cause somebody%26#039;s credit score to decrease?
Credit checks
late payments
credit overload (means you have too much money owed, it does not matter if you pay it on time)
bad checks
-Also unsubscribe yourself from credit card companies%26#039; target list because some of them checks your credit background which reduces your score
What would cause somebody%26#039;s credit score to decrease?
Don%26#039;t apply for anything for awhile ,when you do your score will drop again .I checked mine and found out my bank was running a check up every month so I ask them to stop and they did I have and always had great credit but to many inquires can bring it down .Good luck .
What would cause somebody%26#039;s credit score to decrease?
-FIRST OF all.. ingore anyone who sais that checking your own credit hurts your score.. it does NOT. I dont knoe where people got that from, but you can check your own score 500 times a day and it would not lower you one 1 pt. Only creditor pulls lower it, and even those only lower it about 3 pts each time. And those pts come back very quickly normally.
The main thing that lowers your score are late payments or collections. After that, maxing out your credit cards and keeping them near there limit will lower your score as well. Another action that could lower your score is closing out accounts you have had a good standing relationship with. Those are the main 3 things that lower a persons score.
What would cause somebody%26#039;s credit score to decrease?
paying off collections that are over 90 days since the last report will drop your credit scores. But there is good news!! In 90 days your credit scores will increase again and you don%26#039;t ever have to worry about the collections again.
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