Lender Ratings
TygerLily??? Can you help?
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
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.
Real Estate & Mortgage 5 – Foreclosure Meltdown Fraud & Scams Dec08 – cdos & Bond Rating Agencies
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