I admit that I am not 100% sure that this practice exists, but if it indeed does, it is very much unfair. As I understand it, FICO analyzes individuals statistically based on their respective credit report data. Presumably, people in the same data range (or "bucket") have similar parameters in regard to AAoA, # of accounts, utilization, etc. Now, here is the unfair part...if you work hard to correct any negatives and build your profile to another level (good to excellent, etc.) FICO will then put you into another "bucket" or credit category and then score you under those more stringent and "favorable" data points. So you are now being scored compared to people with much better credit report parameters, and your score may very well go down instead of up. The only way this would be fair is if card issuers know about re-bucketing and take it into account. Please post your opinions and/or knowledge, because this just seems wrong to me...lol!
If it happens, it doesn't matter to me, and I don't think it should matter unless someone is currently looking to buy a house or something. Time changes everything and if your scores fall, they will recover.