I was just curious if the rebucketing process is instant or delayed? In other words, if you take an action that would cause rebucketing, does that happen as soon as the action takes place, or is there a delay?
For example, if someone has two collections on their report. If those two collections are deleted, would the person be rebucketed as soon as they come off the report, or does it take time?
Thanks for the link U, that is very helpful. Based on reading your comments and the other thread (still going through it), it sounds like you are assigned a bucket during score generation. It also sounds like having derogs removed can have a very positive effect on your score. For example, having a collection would cause you to be in bucket #1 (worst), but getting that collection removed could cause you to bump up multiple buckets (assuming the collection was the only scoring criteria holding you back). Does that sound right?
Perhaps it helps you along the lines of where your score caps? For example, assuming that the worst bucket is determined by someone having a collection, PR, or BK, that bucket might deterine that your scores could range from 350-665. So, even if your credit history is 20 years and you have 10 accounts with an AAoA of 10 years, that collection is going to keep you in the bottom bucket, which will prevent your score from increasing any further, regardless of other positive actions taken. Just throwing numbers out there, but is the concept sound?
@msf: sigh, last time I try to type a response on my phone but yes your concept is sound. There are lots of buckets though and we don't know what information categorizes individuals.
We're pretty certain that the existence of negative information does, but there are questions whether say a mortgage rebuckets you or not on an otherwise clean file? Hard to know anecdotally.
We're pretty certain that the existence of negative information does, but there are questions whether say a mortgage rebuckets you or not on an otherwise clean file? Hard to know anecdotally.
Yes, that would make perfect sense. As an example (also from the linked thread), here is a SW alert for someone that was rebucketed:
* You moved from one category of credit users to another as time passed. For example, you may have transitioned from the category "consumers with a new credit history" to the category "consumers with a two- to five-year credit history". As a result, your credit report is evaluated differently, causing a slight change in your score. The good news is that moving between categories like this usually offers you the potential to reach a higher FICO® score in the future.
I know the thread is about six years old, but I'm sure the principle remains. The rebucketing will move an individual into a grouping of people that are more in line with their stats. For example, with the collection dropping off as we've discussed thus far, a consumer might move from the 'existing major derog' bucket to the 'consumer with two-five year history' bucket. This will also alter the formula for evaluating behavior. As you pointed out, someone in the 'existing major derog' bucket will be less adversely affected than someone in the '20 year plus' bucket by a 30 day late due to the grading formula in place at each level.
These theories would also explain why (according to the other thread) bucketing is affected by dreogs and age, however not by other factors like util. UTIL is going to fluctuate by a customers use of credit, but age of history and any derogs are pretty concrete (PFDs etc not withstanding).