Collections account

Collections account
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#1

So I paid one off my collection accounts and my TransUnion score dropped 28 points but my Equifax went up 12, I thought paying off debt would help your credit score so can someone explain to me what happened?


#2

Hi, fabiocruz212

It can be demoralizing to see your credit score drop.

In this case, I doubt it’s the bureau that’s the difference. More likely it is the model of the credit score (which FICO or VantageScore).

What scores (and scoring models) are you comparing? Some scoring models do not consider paid-off collections accounts in scores, but in others, any collections, paid off or not, hurt credit). The VantageScore 3.0, which is offered free from NerdWallet, disregards paid-off collections. But they can hurt in the FICO 8, the model in widest use.