Credit Score in Chicago>Question Details

Hmbyr, Home Buyer in Chicago, IL

credit score difference

Asked by Hmbyr, Chicago, IL Fri Sep 25, 2009

My credit was ran by a lender in August and again this month. Since August, I have paid off my collections and added 2 higher lines of credit,co-signed. This month, my score is actually lower. Does anyone know why this would happen?

Help the community by answering this question:


The first answer by Kyle Hufford was right on, here is why.
Collection activity hurts your score more when it is recent. Older collection activity does not have as big of an impact on your score. If the collections that you paid were old (let's say 3-4 years old) and you just paid them off - now it looks as if you have recent collection activity because the creditors likely updated your account to show the date of last activity. So, your score goes down. (Bummer, I know)

New credit will almost always hurt you. Another factor in your credit score is the length of your credit history. Within 6-12 months, your score should go back up. Just don't apply for any new credit or you will experience the same thing all over again.

Hope this helps!
0 votes Thank Flag Link Wed Dec 2, 2009
1. Paying off old collections can actually hurt your credit
2. New credit can hurt you right away, but help after a few months of good history
0 votes Thank Flag Link Fri Sep 25, 2009
You only need a 620 credit score for fha loan. Hope that helps
0 votes Thank Flag Link Fri Sep 25, 2009
Leslie Strutuers at Guaranteed Rate can coach you through what you can do (and should not do) to improve your credit score. Her email address is or call (773) 290-0360.

Best of luck,

0 votes Thank Flag Link Fri Sep 25, 2009
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