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rebucketing is not fair

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jwright343
New Contributor

rebucketing is not fair

my BK falls off in october.  I successfully got 2 of the 3 to remove early.  while I know these are FAKO scores, I was beyond pissed to see my TU credit karma DROPPED over 20 points.  I was 720s, now 685.  Someone explain this to me.  I busted my butt to get that number above 700.  now that I've 'done my time', I'm penalized again.  hell, I want them to put the BK back on.  was excited to home shop.  won't be now with a crap score of 685, FAKO I know, but still.  someone,  please explain this.  I'm LIVID.  

Message 1 of 7
6 REPLIES 6
TheConductor
Established Contributor

Re: rebucketing is not fair

No creditor will ever make a decision based on your CreditKarma score.

 

I can understand why you're livid, because emotions are not always rational, and it doesn't feel good to work hard for something and not see it recognized and rewarded.

 

I just want to encourage you to remind yourself of all of the following:

 

1. The only reward that matters in the long run is that your financial life is healthier and more secure. Rebucketing is always a short term issue. In the long run, if you are being a good borrower and avoiding the pitfalls that got you into BK, you will be leading a more secure life with less stress, and your credit score will eventually adjust to show that.

 

2. Rebucketing is not fair. Credit scoring is not fair. I have written bucketing algorithms in a past job, and I know first-hand that they do not always score any given individual according to the best of their abilities. Every such algorithm is making decisions based on limited information, grouping people according to shared attributes and trying to predict who among them represents the greatest or least relative risk. When your BK falls off your report, that means that an important piece of information that explained your old behavior is gone; meanwhile, the history of your new behavior is not yet long enough to get you to the same level without that explanatory context. You just have to trust the continuing to be the new you will in time take you to where you want to be, and beyond.

 

3. Emotional attachment to financial matters is one of the most dangerous things that can happen to your credit score. I know this one from experience. How many times did I miss payments to creditors because I was too ashamed of being unemployed to call them and set up a payment plan? Way too many, that's how many. Shame, anger, and fear will only lead you back down the dark path. One of the best skills you can cultivate is the ability to behave coolly and rationally even when your feelings are telling you something different.

 

4. If you're not reacting with strong positive emotions to the good things that happen to you, you're being more unfair to yourself than any rebucketing could ever be. Your bankruptcy is fading into the distance and about to vanish completely...that is cause for celebration!! If your joy is not 10 times the amount of your lividness over a FAKO score, something is seriously wrong.

 

Acknowledge the fact that you have completed an amazing and difficult journey. Party down! Dance! Next to this achievement, one score is a miniscule thing.

 

 

Starting: EQ 622 (myFICO 7/7/12), EX 696 (TU FAKO 8/14/12), TU 621 (CK TransRisk 7/24/12), Total CL $1k on 2 TLs
Current: EQ 709 (CCT 2/4/15), EX 704 (CCT 2/4/15) , TU 702 (CCT 2/4/15), Total CL $110.3k on 14 TLs Goal: 740+ x3
My Wallet: Amex BCP $30k, Chase United Explorer $16k, Amex SPG $13.5k, Barclaycard Ring MC $12.5k, Chase CSP VS $12.2k, Discover it $10.5k, C1 Venture VS $6.5k, Chase Slate $3.5k, Amex Hilton Surpass $2k, Barclaycard Apple V $2k, Chase Freedom V $1100, BoA Cash Rewards V $500, Citi BestBuy $500
My Loans: Prosper $25k/36mo, Prosper $17k/36mo
My Business: Chase Ink VS $5k, Amex BRG NPSL (> 10k),
Message 2 of 7
ddemari
Super Contributor

Re: rebucketing is not fair

Op- dont worry about the fako's. I was able to get TU to delete my bk about 6 months early last year, I saw no improvement in my score. When EQ and EX dropped the bk off my reports, I maybe got 5-10 points. But, my scores since then have seen the fasted improvements on increases now that the BK is gone. 

 

I was expecting some great increases too but it didn't happen. 

Message 3 of 7
mynameainttracy
Established Contributor

Re: rebucketing is not fair

I only saw real score improvemement when the IIB negative accounts started falling off.

 

Here is an example of how the credit karma score isn't accurate...My mortgage account just started reporting. On my scores here I lost 5, gained 5, no real impact. However, on credit karma my scores dropped 50 points on each CRA's score. CK is good for monitoring activity on your credit reports but not for your credit score.

Message 4 of 7
takeshi74
Senior Contributor

Re: rebucketing is not fair


@jwright343 wrote:

was excited to home shop.


To further what TheConductor said above, no mortgage lender is going to use your VantageScores.  Pull the FICO's that mortgage lenders use if you want to gauge if you're ready to go home shopping.

Message 5 of 7
Anonymous
Not applicable

Re: rebucketing is not fair

All statistical models that evaluate risk compare people with similar profiles. It will not be fair if you were to compare a Toyota Corolla to any Ferrari model and arrive at the conclusion that Toyota offers 25% of the performance at less than 10% of the cost. Sorry it happened to to you, but that's how it works.

Message 6 of 7
masscredit
Valued Contributor

Re: rebucketing is not fair

I had noticeable but small gains as each IIB account fell off of my TU report. I saw the biggest gain when the last one was deleted. Gained 40 points. I still have a few years until my BK falls off. I believe the impact on my scores is a lot less than it was a few years ago.  I'm wondering what rebucketing will do to my scores in a few years.

Pre-Credit Rebuild Scores Pre-DC (3/24/22) - EQ - 524 / TU - 519 / EX - 495

Current Scores - EQ - 687 / TU - 663/ EX - 677

SDFCU Secured - $5000 / TD Bank - $5000 / Mercury - $5000 / Capital One Savor One- $5000 / Capital One QuickSiver - $4500 / Ally Master Card - $2800/ Walmart Mastercard - $2250

Andrews FCU SSL $1500
Message 7 of 7
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