2 baddies fell off...score dropped by 6 points!

[Mike_B03]

What the heck! I just got a Score Watch from MyFico saying that my credit score has changed. I quickly logged in, expecting to see a boost as I was waiting for a couple baddies to age off but to my surprise my score went from 674 to 668! I previously had 7 bad account and now I have 5. The 2 that fell of were charge off accounts with $0 balance.

Additionally, my "Your most recent late payment happened..." went from 5 years to 6.5 years. AAoA stayed at 6 years. By all indicators, the score should have go up not down.

Another 4 baddies are scheduled to drop off next month, will the score drop even more!? 2 of these 4 baddies have balances ($21,000 for one, $1,500 for another).

I'm in the middle of buying a home and have to have the score as high as possible.

[Mike_B03]

Anyone?

[Goal850]

Maybe rebucketing? Apparently, sometimes when you people start getting the last of their baddies deleted, their score drops initially because they have been rebucketed into a new score range or something like that. Basically with certain baddies your score can only get so high, but as your baddies start to fall off your max score now increases. I know I read something to that effect. Search "rebucketing" im sure you'll come up with a better description then what I just explained.

Congrats on the baddies falling off.

[Goal850]

Here's a thread on it: http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Rebucketing/td-p/1448458

[Mike_B03]

Thanks for the reply and doing the research for me.  

Very interesting, so in essence it's a good thing, even though initially it doesn't appear that way. Hopefully it goes up quickly. I have 0% utilization right now with a statement closing on Jan. 21st and I'm going to increase my utilization to 7%, so a week or so later I should see it affect the credit report and get a new score.

[snsforever916]

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@Mike_B03 wrote:

What the heck! I just got a Score Watch from MyFico saying that my credit score has changed. I quickly logged in, expecting to see a boost as I was waiting for a couple baddies to age off but to my surprise my score went from 674 to 668! I previously had 7 bad account and now I have 5. The 2 that fell of were charge off accounts with $0 balance.

Additionally, my "Your most recent late payment happened..." went from 5 years to 6.5 years. AAoA stayed at 6 years. By all indicators, the score should have go up not down.

Another 4 baddies are scheduled to drop off next month, will the score drop even more!? 2 of these 4 baddies have balances ($21,000 for one, $1,500 for another).

I'm in the middle of buying a home and have to have the score as high as possible.

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 With 5 baddies still reporting your score will still be low. Until your last baddie is gone it will only go up a few points. My husband had 10 and 1 remained stubborn for a while but finally came off his score jumped. His score was sitting at 637 for a long time with the remaining baddie. It jumped to 715...an increase of 78 points. His intial score was 594 and it gradually climbed from 594-637 from 9 baddies deleting...only 43 points...that last one was 78 points!

[Mike_B03]

Yea, that last one really screws me and it's a stupid collection for only $480! It won't fall off until July 2014 too. I should have paid that stupid bill.

[snsforever916]

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@Mike_B03 wrote:

Yea, that last one really screws me and it's a stupid collection for only $480! It won't fall off until July 2014 too. I should have paid that stupid bill.

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Lesson learned. We have all been there. Just pay it and good will the heck out of it! ;o)

[llecs]

OP, it wasn't rebucketing. You cannot be rebucketed if you have baddies remaining.

Assumption that these were COs. Were these accounts your oldest or among your oldest accounts? How was AAoA impacted with their demise? DW lost 30 on EQ I think after her paid CapOne CO was removed due to CRTP. It was her oldest account  overall and dropped AAoA.

[madmann26]

llecs

I'm pretty sure it was his AAoA that caused this based on the info he provided. It looks like when the 2 accounts fell off he lost 1.5yrs on his AAoA.

Sound about right?