Weird or Normal?

Question

I am trying despertly to fix my credit. My score went from 471 to 525 in about 2 months from me paying things off and disputing incorrect items. I thought I was on a staight path. I also pay extra for alerts to notify me if anything changes on my report. I recieved an alert on the 31st of last month and my score went down 31 points. There was nothing new added to my report. The last changes was on the 15th of March where it was updated that I paid an old balance of 175 off and updated as 0. The trade line was updated from derogatory to paid. Mind you this was 15 days prior to my score falling 31 points. I disputed an item and it was updated to basically saying the samething that it said previously. This was also done on the 31st of march. How could this drop my score 31 points in one day? I don't believe that this is correct.

Answer 1

You are doing the right things, being proactive. Keep paying off your debts as best as you can. I do agree it does seem weird, I'm assuming you talked to a credit agency to work out your problems. See if they can recommend a debt councilor or someone you can look at your finances and see if they can recommend some changes, they claim in ads that they can talk to your creditors and help lower your payments. I have never used them so I can't claim it works. Keep doing what you are doing and keep be proactive is my advice.

Answer 2

Normal. You are doing right and increasing your score in the long run. Your score could have dropped because the recent update on the old debt made the activity appear more recent than it is. (Don't worry it will still fall off your report 7 years from the original report date, not the date you paid.) Items which were updated recently (within the last 2 years) have more of an effect on your credit since the score focuses more on present activity than past history. By paying off the debt, the account would show closed (if it was not already showing closed) which will also lower your score since you have less open accounts and available balances. (If you paid most of the item previous to paying the item in full, you were probably using less than 30% of the available credit which was a good thing. Now you have lost that available credit since the account is closed.) Another part of the score is the average length of time an account is open. So if the account had been open a few years and was the oldest account on your report, your average dropped since the open accounts haven't been opened as long. Your question is a common question that occurs when people try to pay off old debts. In the long run, you'll be better, but for the short timeframe, your score is going to take a beating. That's why some people "let laying dogs lie" when it comes to really old debts that have already passed their state's statue of limitations and are about to fall of their report.

Answer 3

It could be several factors.

Those credit monitoring services, like true credit, privacy matters, etc., etc., are not always accurate. They are not always timely on their alerts either.
Their scores are not true scores and can vary widely from true FICO's.

To know exactly what is going on with your scores you need to get them from myfico.
If you are still in credit repair, constantly buying myfico's is basically a waste of money since scores fluctuate constantly while repairing/rebuilding credit.
And purchasing myfico's should only be done (if you can afford it) once when you start your credit repair/rebuild and then after you reach major milestones in your repairs - such as negatives being removed, etc. Or, every 6 months to a year.

One other thing that can lower a score is in paying an old negative and it remains on your reports. It updates the old account to make it look newer than it actually is. Which can have a negative impact on your scores.
If the paid negative is reporting inaccurate in any way, dispute it

Answer 4

Have you recently applied for new credit somewhere? Sometimes, actually applying for credit can temporarily lower your credit score when there are hits on your report from creditors checking your score. If you have recently applied for a car loan, new credit cards, a mortgage, or any other type of credit, then your score can become lower. What about applying for a new job? Sometimes employers check your credit report as well and that can make your score temporarily lower. The reason why is because the credit companies consider hits on your report to be companies inquiring your score in order to give you NEW credit...which means they think you are actively seeking to add to your debt.

Also, if you have closed any open credit accounts recently (within the last 3 months), sometimes that can actually make your credit score lower. Say you have three credit cards. You are using 80% of the credit limit on one card. 70% on another...and on the third, where you had used up to 60% of the limit on the card, you decide to pay it off and then close the account in an attempt to lower your score. Your credit score is going to go DOWN because your score is based on debt-to-credit limit. I'll explain...

Let's say the credit limit on each card is $100. Total, on the three cards, you have $300 available in total credit. However, you are using $80 on the first card + $70 of the next card and $60 on the last card. Add that up and you have $210 out of $300 used. That leaves you with added credit of $90 available. But you want to pay off the card with $60 on it. You pay that off...and now you only have two cards...but the credit used on those two cards totals $150 and now your available credit limit is only $200. That means you now have only $50 in available credit versus $90 so your score will go down. That means the BEST thing to do is actually leave that third card open. Tear up the card, but leave the account open. It won't hurt you...it will only HELP you. That adds $100 onto the credit you have with the other 2 cards bringing your credit-to-limit ratio to $150 out of $300 and your score will go up.

There could be many reasons why your score could go down 31 points, and those are just a few possibilities. In trying to help improve your score, it's possible to lower your score a few points by closing out accounts with zero balances. I know what a tough road you're on. I've been there. The best of luck to you in increasing your credit score.
:-) I'll list a really good book on the subject for you...

Answer 5

Did any of the balances on your accounts go up from the previous month? I got a "random" update on the 31st as well (mine was +7). I assumed that was when they updated the oustanding balances or something.

I signed up for the myfico.com service and also the Triple Advantage one. MyFICO is much more on the ball about alerts, but with Triple Advantage you get unlimited credit reports, so I'm trying to decide which to keep.

Answer 6

I work with people who have bad credit get into homes. One of the things I do with them is help them call the credit card company and help them dispute the charges or get it removed. I do this by writing a letter that get's close to 100% success rate. It does take some manuevering and effort but it does work. e-mail me at [e-mail] . I can forward you that letter.

Answer 7

Remember, credit reports may not necessary be accurate at all times! Check with your credit card, bank of finance companies you owe monies to and see if they can assist in anyway.