07-18-2009 08:52 AM
what does rebucketed mean?
Basically all of our credit profiles are are placed in different areas based on a number of catergories, such as length of credit history and number of derogatory accounts, called scorecards by FICO, but colloquially called buckets. In short, your score is based partly on how you compare to other people with similar credit profiles. It adds fairness to the system, since a person with a 2 year old credit file won't be directly compared with a person with a 30 year old credit file, or somebody that has 10 derogatory accounts won't be directly compared to someone with no baddies. As your report changes, you move in and out of the different buckets, which is called rebucketing. This can affect your score, as your credit file may have rated at the top of the thin credit file bucket, but is only an average profile in the thick credit file bucket, which would cause your score to drop some. Even with your score dropping temporarily as you move in to better buckets, this is never a bad thing in the long run, as your bucket determines the maximum score you can achieve.