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Chauncey  May, Other/Just Looking in Cheltenham, PA

Lowering of score

Asked by Chauncey May, Cheltenham, PA Wed May 16, 2012

My lender is telling me to pay the collection account and check my score in 30 days,I have asked about rapid re-score but can not get an answer. Will rapid re-score work, I have 3 accounts that I'm negotiating settlements on, I'm trying to raise my score from 627 to at least 640 or 660 at best in the next 30 to 45 days, can this be done? I was told that paying collection accounts can hurt more than help,then some say my score may increase, confused on what to do,lender is not very helpful.

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Hello Chauncey May,

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.

Alan Openshaw
Cornerstone Lending Inc
Southampton Pa 18966
215 953 0800
cell 267 992 7276
NMLS ID 143960
0 votes Thank Flag Link Thu May 17, 2012
Hello Chauncey,
what rate are you being offered right now and at what cost? The difference between a 620 and a 640 rate is about $3 per month on a $100,000 loan, but if you go below 620, you are now going to pay significantly higher.

Flag Fri May 18, 2012
I have been informed that a 627 score will get me higher rates than if I had a 640 or above score, I can get the loan but my rate will be higher, I am trying to get the best rate I can get.
Flag Thu May 17, 2012
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