I Paid Off an Old Debt and My Credit Score Went Down. – Michelle

Michelle

“Dear Steve,

To pay or Not to pay…. that is the question.

Have a old debt (over 2 years old) I have been told not to pay it because if I do it will make a negative mark on my credit. I know this is true because I paid off something else which was in collection, it now says Paid, but brought my score down by 4 points. 4 points is alot when your score is already low. Now I’m afraid to pay off the other debt because it might lower my score more. On the other hand, I would like to pay it off. What’s the best solution that would INCREASE my credit score or at least not lower it more.

Michelle”

The Answer:

 

Dear Michelle,

I don’t know who told you that but they are wrong.

There are a number of reasons why your score can fluctuate and 4 points is nothing. Each bureau uses their own scoring model, the formulas change and as time passes, and things get weighed differently.

Rather than guess why your score is what it is, you need to order a copy of your consolidated credit report with credit score. It will show you what each of the credit bureaus are calculating for your score and tell you what you can specifically do to improve your credit score.

When I look at my own credit score they range 17 points between credit report bureaus. And my score changes a bit every month.

What I am more worried about is if you have a current good line of credit that is reporting to the credit bureaus. You will be able to confirm this when you get your consolidated 3-1 credit report. If you do not have an active credit card, not store card, that is reporting to the credit bureaus, your score will drift down.

You see your credit report has bad credit on it and if it ends on a bad credit note it is like being in school and getting a D on a test. Unless you get better grades after that it will not pull up your overall grade.

If you don’t currently have a major credit card I suggest that you consider a secured Visa or MasterCard that will report to the credit bureaus. That will do the trick to start bringing you back up. And the other thing that will help, pay off any open collection accounts.

Big Hug!

I Paid Off an Old Debt and My Credit Score Went Down. Michelle your credit score whats my credit score whats a good credit score what is my credit score what is considered a good credit score what is considered a good what is a good credit score what does my credit score mean understanding your credit score understanding credit scores understanding credit score three credit score repairing credit score repair credit score refinance credit score raising credit score raise your credit score raise my credit score raise credit score fast raise credit score providian credit score personal credit score perfect credit score online credit score national credit score national average credit score my credit score maximum credit score low credit score loan credit score lenders credit score interest rate credit score insurance credit score instant credit score increase your credit score increase my credit score improving your credit score improving credit scores improving credit score improve your credit score improve my credit score improve credit scores improve credit score how to repair credit score how to raise your credit score how to raise my credit score how to raise credit score how to improve your credit score how to improve my credit score how to improve credit scores how to improve credit score how do i improve my credit score how credit score how can i improve my credit score highest possible credit score highest credit score get my credit score get credit scores get credit score free credit scores free credit score online free credit score no credit card free credit score free credit report score free credit report and score fixing credit score fix my credit score find credit score fica credit score fair isaac credit score excellent credit score dispute credit score credit scores good credit scores explained credit scores credit score solutions credit score simulator credit score service credit score scale credit score reports credit score ratings credit score rating scale credit score rankings credit score ranking credit score ranges credit score range low credit score credit score range credit score numbers credit score mortgage credit score monitoring credit score meaning credit score loans credit score information credit score info credit score increase credit score improvement credit score home loan credit score high credit score help credit score good credit score fix credit score explanation credit score explained credit score estimator credit score definition credit score companies credit score commercial credit score com credit score chart credit score calculation credit score analysis credit score agency credit score agencies credit score address credit score 800 credit score 650 credit score 3 1 credit score credit reports and scores credit report scores credit report score credit report and score credit report and credit score credit rating scores credit rating score credit card score credit card credit score credit bureau score consumer credit score check your credit score check my credit score check credit score change credit score canadian credit score business credit score build credit score better credit score best credit score beacon credit score bankruptcy credit score bad credit score average credit scores average credit score average american credit score 720 credit score 700 credit score 600 credit score 500 credit score 3 credit scores 3 credit score ask the get out of debt expert
@GetOutOfDebtGuy

Check out your debt relief options using The Amazing How to Get Out of Debt Calculator. It's free, easy, and anonymous.

Other Related Articles to Read

Google Plus Submit a Tip Ask the Debt Experts