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Accounts Removed - Scores Dropped?

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tschaet
Regular Contributor

Accounts Removed - Scores Dropped?

I asked TU for an Early Exclusion for a chargeoff from Wells Fargo and a paid collection from Portfolio Recovery.  I also disputed them.  Wells Fargo came back as reporting correctly and Portfolio Recovery agreed to delete from all three.  They have not just yet.  TU responded to my EE request by removing both Wells Fargo and Portfolio Recovery.  When they did this, my TU score dropped down 15 points from 637 to 622.  Why exactly would it drop that much?  Is it because it caused the age of accounts to lower?  If so, will my score continue to drop if I have other accounts removed?  

$1700$2000
5/2022 Credit Karma Scores:

April 2022 FICO Scores:

May 2022 FICO Scores:
2 REPLIES 2
Anonymous
Not applicable

Re: Accounts Removed - Scores Dropped?


@tschaet wrote:

I asked TU for an Early Exclusion for a chargeoff from Wells Fargo and a paid collection from Portfolio Recovery.  I also disputed them.  Wells Fargo came back as reporting correctly and Portfolio Recovery agreed to delete from all three.  They have not just yet.  TU responded to my EE request by removing both Wells Fargo and Portfolio Recovery.  When they did this, my TU score dropped down 15 points from 637 to 622.  Why exactly would it drop that much?  Is it because it caused the age of accounts to lower?  If so, will my score continue to drop if I have other accounts removed?  


I am no expert by any means, however recently I had a collection account pop up on Experian with a 2010 date and it increased my score 29 points. It was not my account - it's from a messy divorce they still attach my name too, and Experian immediately removed it the next day, and my score dropped the 29 points it had increased. Since my credit is all still new  at around a year old, I assumed it was because it aged it and that was what made it increase even though it was a collection account. 

 

Based on that and what happened to you, I would say yes, even if the accounts are bad, if they are removed your average account age will drop, lowering your score.

Message 2 of 3
Anonymous
Not applicable

Re: Accounts Removed - Scores Dropped?

Removing any accounts that are older than your AAoA will will drop your AAoA.  Removing any accounts that are younger than your AAoA will raise your AAoA.  Remember that AAoA needs to cross a threshold to result in a score increase or decrease.  The thresholds are at integer values, not decimals; An AAoA change from 2.9 years to 2.1 years is scores as "2" years regardless for example.

 

Another thing, was either of the accounts removed your oldest account?  If so, you could possibly be rebucketed based on the age of your oldest account which could result in a score change.

 

Finally, a "negative" account, that is an account with any form of negative information on it is far better off removed even if it means an AAoA reduction.  AAoA matters probably 4X less than positive vs negative account history.  Anyone should be glad to have a negative account removed, regardless of impact on AAoA.

Message 3 of 3
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