Hi I had a BK removed August 2, 2007 so I pulled my report thinking that my score would have improved. To my dismay, my score dropped 20 points. I reviewed my prior report and there was no change other than the BK removal. Any idea why this drop occured?
This is not uncommon. It's called the "scorecard" "bucket" or "pool" problem. People are not compared to everyone else equally in scoring. Before you were in the group of people with a BK on their reports. Just before your BK aged off, you were in the top of that group and scored higher than the people who had recently filed. But now you're in the next tier up, so you start closer to the bottom of that group. The people there have had better credit for longer than you have. The good news is that so long as you pay your bills on time, don't go crazy with inquiries, etc., you can keep improving your score. Good luck!
----------------- Bartender, bring another round of FICOtinis please!
Thanks for the information. It seems like I would have been better off with the BK remaining on my report. Since the BK was so old, most lenders don't even consider it in their decision making. Now I'm stuck with a lower FICO. The credit scoring "game" is ridiculous.
I would imagine that you would be so excited to not be wearing the scarlet letters of BK anymore. Sorry about the point loss but now you can really get a chance at starting over with no remnants of your fateful past. Cheer up, it will get better, I still have til 2010 with mine.