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Rebucketing?

Regular Contributor

Re: Rebucketing?


Duncanrr wrote:

My understanding is that as you increase (or hopefully not decrease) your scores you are bracketed/bucketed into a population of people with similar scores.  For example you may be in the subprime group with people who have bad credit.  As your score improves, you are removed from this population and normalized into another group of people you typically have higher scores than your last group.  (think of it as going from JV to Varisty).  As a result, your scores tend to take a hit as you are now compared to people that will typically have higher scores than you.  The benefit is that in the new bucket your scores are supposed to normalize with the rest of the group in a quicker fashion.  This results in quicker gains (and/or loses) to your scores.

 

Someone let me know if my understanding of this concept is off.

 

Duncan


As you move up in score cards and the score drops; how long does it typically take to recover and go back up if you continue on your pace to credit improvement (assuming one doesnt do anything to trash their credit again)?

Started January 2013 in the lower 500s
Scores (as of January 2014) Equifax 630 | Experian 646 | Transunion 674
With the help of you all; I am working my way to the 700 club!
Message 21 of 35
Valued Contributor

Re: Rebucketing?

My understanding, from reading about other people's experiences is that it can take 3-6 months but its a ymmv kind if thing.


Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

Take the FICO Fitness Challenge
Message 22 of 35
Senior Contributor

Re: Rebucketing?

I seem to have reached a low 700 level I can't seem to break, but alas I've not been inq/new accout free but for 6 months, still 3 yr aaoa though!;-)
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Message 23 of 35
Frequent Contributor

Re: Rebucketing?

Time heals old wounds. 

CARDS.jpg

Message 24 of 35
Valued Contributor

Re: Rebucketing?

Rebucketing changes the weight of factos such as AAoA, Utilization, and number of cards reporting a balance. In my case when my oldest account reached 4 years my FICO plunged from 750s to 690 without any other changes. The reason, which became apparent over the following weeks, was the new scorecard (bucket) weighs the number of cards with zero balances very heavily and the earlier bucket didn't. Since all my cards had small, but non zero balances at the time my FICO dropped like a rock. This makes sense since when you first have credit you are likely to use all your cards and utilization counts more heavily then. I fully recovered simply by adding a new account and zeroing another account. In all cases my util was low.

 

Remember, the percentages that each publsihed factor has is a global average. Buckets each have their own weights which can deviate from the averages. So, if you are rebucketed just try different things to see what the FICO score is most sensitive to in the new bucket.

 

 


I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy18k, Amex Plat (60k H/B), Citi AA EWMC 25k
Message 25 of 35
Highlighted
Valued Contributor

Re: Rebucketing?

The bucket used to give you a score is based on your credit characteristics. The each score model has several buckets to accomplish the socring. You can go to FICO.com and look at scores. What the forum calls buckets are called scorecards on FICO and elsewhere.  As your credit profile changes the scorecard or bucket used  may change as well..

Equifax My FICO score 814 11/29/2016, Discover TU FICO 807 12/29/2016 Citibank Equifax Bankcard FICO score 827 12/27/2016 Average of Accounts 13 years and no Installment accounts, 1 TU inquiry in 2015
Message 26 of 35
Valued Contributor

Re: Rebucketing?

Hate to bump and aged thread, but this is a very helpful read! I'm glad Lexie referred to it in another post. I learned something and when I get home later, I'll have the time and desire to read all of this thoroughly!

625 EQ FICO Current Score: 660 DCU EQ FICO/ 645 Scorewatch EQ FICO , EX FICO 664, TU FICO 737 (08/2014)
Goal Score: 700   Seedling again as of 07/29/14
Message 27 of 35
Frequent Contributor

Re: Rebucketing?

Complicated stuff.....but good to know for when these weird score changes occur. I'm gonna assume that 98% of America have no idea what "bucketing" is......LOL>

Myfico scores.....
EX... 805 (11-10-13)
EQ... 810 (12-02-13)
TU... 810 (12-02-13)
Message 28 of 35
Senior Contributor

Re: Rebucketing?

I feel the bucketing system favors lenders.


Starting Score: 675
Current Score: EX 753 FICO, EQ 737FICO, TU 738
Goal Score: 776 FICO


Take the FICO Fitness Challenge
Message 29 of 35
Established Contributor

Re: Rebucketing?

Very informative. I was trying to figure out why my January scores sank like the Titanic despite falling balances and increased limits when I remembered something about scorecards being discussed here. Now I feel a little less bummed out.

      
Message 30 of 35