TygerLily??? Can you help?

Question

TygerLily, posted this question in another forum and received mean responses.

I think you had a valid question and should ignore that nasty so-called know-it-alls comment. Some people are so miserable they have to try and make everyone else that way as well. I am going to post your question and my attempt at help.

Credit Question; score update?
I am taking the advice of a lender and paying off a bill that is 2 years old. I am trying to increase my scores. Lender said the credit score will decrease prior to increasing. WHAT!?!??! Can anyone help me understand what is meant by this? When will the score increase?

(I know very little about credit ratings, other then I have a good one. Which mean my interests rates are lower then most peoples. I do think that it sounds strange you credit would drop when you pay off an old debt. That is just my opinion)

Common on folks, please help her out.

You're welcome TygerLily and I hope I was of help. Nobody

Answer 1

To start out with -- I save my criticism for collectors :)

The reason the lender said the score would decrease is because making a payment on an older negative account will update the account (updating is not re-aging) to make it look newer than it actually is. And the scoring system will look at the update and "think" it's a newer negative.

I don't know if you (TygerLily) are dealing with the original creditor or a collection agency.

A paid negative is still a negative. So request, in writing, that the account be deleted upon payment.

The collection agency may agree to it, but since you are already paying you are losing your leverage.
Original creditors may not agree to it, most won't, but it does not hurt to ask.

If they won't agree to delete, after it is paid, look over the trade line for "any" inaccuracy and dispute it with the CRA's.
You may get lucky and they won't verify which means the trade line legally should be deleted.

Answer 2

I cannot believe that this has morphed into an online argument. Wonderful that your credit is stellar and that your interest rates are lower than most. Unfortunately, mine isn't perfect. That's OK, I am trying to move forward with my life.
Thanks Marty and Nobody for trying to be helpful. I need answers not criticism. That's why I visited Yahoo Answers.

Answer 3

There Marty goes again... crap advise, looking out for himself, and not thinking his answers through. Spam, if nothing else.

It's not a "given" that you score will drop, that's for sure. I can tell you that the lender will look favorable on the payment of past obligations, and that a REPUTABLE LENDER (not Marty) can speak with the credit agency to have your credit re scored. If you have further questions, just shoot me an IM. Hope that this help you a little.