Your credit report does not change daily and does not reflect every charge that you make on a credit card. In some cases there may be a delay between paying off a card a that being reflected on your credit score. Rapid rescore costs $50 per tradeline per reporting agency and you can updates your credit and rescore it in the middle of a month.
HOWEVER, your lender is telling you to pay off these collections to raise youre score. More than likely it will not happen. Here is why. Credit is scored based on good and band things on your credit report. The bad things are scored according to how old or new they are. So a late on a mortgage last month may cost you 100 points., A late on a mortgage 5 years ago is probably only hurting your score by 30 points. A collection is a collection no matter how you slice it. it mnay be showing as lkast active 4 years ago and you owe $50. If you pay it off it will show as a collection that was active last month. Unfortunately the score may go down. I've seen it happen too many times. Maybe instead of paying off the collection, pay down your credit card balances. if you have a card with a $500 limit and your balance is $501, you score gets wacked about 60 points because you are over the limit. $1 raises your score 60 points. Paying below certain levels have the same effect too. Try to get the balances 70%, 50% or 30% of the limit and repukk your credit next month.
All this advice and you keep going back to the Credit Union. Funny thing is I don't need a 640 score.
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
VOTED BEST IN BUCKS 2010
NMLS ID 143960