While credit repair can seem like a daunting task for many, Credit Armor allows consumers to quickly and easily dispute items on their credit report, negotiate debts and monitor their scores movement with just the click of a button. In some rare cases, after the disputes have been made and items have been removed from the report, a client that expects a rise in their credit score can sometimes be met with a decrease. It can be disheartening to see your score decrease after disputing items, but this score decrease can actually be a positive outcome for many reasons. In today’s blog, we will go over why a score can drop after the removal of items from your report and how to maximize the effect of new lines of credit on the report.
Why Did My Score Drop.
Let’s take a look at an example I personally came across a month or so back with a client that disputed several accounts on their account came back with 100% removal of items but had a 30-point drop in their score. The main reason that your score can drop after the removal of items is a case where there are not enough positive active lines of credit left on the report after removal. Each item, positive or negative, that is listed on your account holds weight when it comes to your score. In this case, this client had successfully disputed and removed 3 different collection accounts from their report. After our partners at Credit Law Center reviewed their report during a free consultation, it was found that after the removal of those accounts, the only items left on the report were 1 small personal loan and 2 credit cards that were closed out after the balances were paid and the cards were inactive for several years. At that point, our client was essentially sitting on just the active personal loan that was reporting to the bureaus. While the negative items were removed from the report, now their credit portfolio was underdeveloped with not enough active items reporting. Though to most, this would be disheartening, but leads us to our next point.
What Do I Do After a Score Drop
With our client’s credit report essentially being wiped clean, this meant that any positive credit that was listed on the report would be able to “shine” more easily now that the negative items were not countering the positive. The credit adviser at Credit Law Center directed the client to open (in this case reopen one of the inactive) credit cards and keep the balance as low as possible while still utilizing it. In this case, the client has been using the card as a “gas card” and uses it strictly at the gas station. This way, the client can have an open line of credit that will report positively to the bureaus after their next update, is easily manageable due to it being used for specific situations and will continue to slowly build their credit the longer that it is open and in good standing with a low credit utilization rate.
I’m Unsure of How Different Items Could Affect My Score.
If you are unsure of how the removal of certain items could impact your score or what the next step would be after disputing items on your report, our partners at Credit Law Center are here to help. In just 15 minutes, one of CLC’s seasoned credit advisers can review your report with you on Credit Armor and provide a free consultation to help guide you in the right direction in your credit repair journey. Have a quick question; Credit Armor’s team of service professionals are here to help with all of your Credit Armor needs and are just a call away at 8555235902!