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Established Contributor
PurpleHaze
Posts: 717
Registered: ‎03-05-2008
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CC's Reported Stolen - Why does Score Go down

My purse was stolen this week and I had to report 8 or so cards stolen. I am now getting alerts as each one reports lost/stolen that my score has decreased & it shows up as a negative item. Why do lost/stolen cards decrease the FICO score? Will my score recover when the replacement is reported? How long do lost/stolen cards remain on your report?

Starting Score: EQ: 633 (12/31/09) TU: 651 (12/31/09)
Current Score: EQ:633 TU: 651
Goal Score: EQ: 700 TU:700


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Established Contributor
VEEnVEGAS
Posts: 645
Registered: ‎10-24-2007
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Re: CC's Reported Stolen - Why does Score Go down

I think you'll regain the points as soon as the replacement cards report showing the account open.

 

My JC Penny card that was stolen 13 yrs ago still reports along with the replacement card.

Established Contributor
PurpleHaze
Posts: 717
Registered: ‎03-05-2008
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Re: CC's Reported Stolen - Why does Score Go down

Thanks for your reply. I thought lost/stolen cards were not to appear after a certain timeframe but I cannot locate the information.  I dont understand the negative impact to my score either.

Starting Score: EQ: 633 (12/31/09) TU: 651 (12/31/09)
Current Score: EQ:633 TU: 651
Goal Score: EQ: 700 TU:700


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Established Contributor
VEEnVEGAS
Posts: 645
Registered: ‎10-24-2007
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Re: CC's Reported Stolen - Why does Score Go down

I haven't a clue whether my scores were affected by the stolen card as I wasn't paying much attention to FICO scores at the time.

 

My best guess, judging by how my stolen card reports, is that you took the hit because so many cards show as closed at the moment thus affecting utilization (although some will argue that it would have no effect). If this is the reason then your score should bounce back quickly as soon as your new/old accounts show up.

Moderator Emeritus
Posts: 11,562
Registered: ‎08-29-2007
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Re: CC's Reported Stolen - Why does Score Go down

CRTP

 

Lost credit card: If there are no delinquencies, credit cards that are reported lost will continue to be listed for two years from the date the card is reported lost. Delinquent payments that occurred before the card was lost are reported for seven years.

 

Are the new accounts reporting as the lost accounts are being reported as lost? Might be from the hit you are taking on AAoA.

 

Pull a new report and check out what exactly is being reported. How are the lost accounts reporting? How are the new accounts reporting, if they are reporting?

 

Quite possible that they are reporting the original accounts as lost, reporting the new accounts, and both are reporting balances. Need to check that.

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Established Contributor
PurpleHaze
Posts: 717
Registered: ‎03-05-2008
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Re: CC's Reported Stolen - Why does Score Go down

Thank you for your response. I did pull reports once I received the notifications.  The only thing reporting is the original account with the last reported balance.  Followed by that same account reporting as lost/stolen. So to be clear, I should make sure the new accounts are reporting with a balance. However, should the old account still report a balance as well?  Should the accounts closed as lost/stolen report a balance or $0?  

Starting Score: EQ: 633 (12/31/09) TU: 651 (12/31/09)
Current Score: EQ:633 TU: 651
Goal Score: EQ: 700 TU:700


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Established Contributor
VEEnVEGAS
Posts: 645
Registered: ‎10-24-2007
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Re: CC's Reported Stolen - Why does Score Go down


sidewinder wrote:

CRTP

 

Lost credit card: If there are no delinquencies, credit cards that are reported lost will continue to be listed for two years from the date the card is reported lost. Delinquent payments that occurred before the card was lost are reported for seven years.

 

 


Mine still reports after 13 yrs but seems to do no harm.  There were never any delinquences on it either.

 

You're probably right about the AAofAs. The lost cards wouldn't be counted and the new ones haven't shown up on her reports yet to replace the lost age.

Valued Contributor
athensguy
Posts: 1,291
Registered: ‎02-26-2008
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Re: CC's Reported Stolen - Why does Score Go down


VEEnVEGAS wrote:

sidewinder wrote:

CRTP

 

Lost credit card: If there are no delinquencies, credit cards that are reported lost will continue to be listed for two years from the date the card is reported lost. Delinquent payments that occurred before the card was lost are reported for seven years.

 

 


Mine still reports after 13 yrs but seems to do no harm.  There were never any delinquences on it either.

 

You're probably right about the AAofAs. The lost cards wouldn't be counted and the new ones haven't shown up on her reports yet to replace the lost age.


The lost/stolen TLs are counted in AAoA. If the lost cards were younger than average age, it can ding your score. If the lost cards are older than average age, it could help.

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