williamd1972 wrote:
How long does it take for your credit score to rebound
after you have been bucketed?
That would be determined by the nature of the bucket change.
If you are rebucketed because a BK fell of your reports, I would pretty much assume that you are competing (for score) against people who might never have had a BK. Your score at that point would be what it would have been if you never had a BK. If your scores are lower than your new peers, it would only be because they have better credit file data.
Your ongoing data will have to improve and age for your scores to go up presumably at a similar rate to that of your new peers. I would therefore conclude that you would receive relatively small score increases over time. On the other hand we do know that sub 700 scores tend to increase faster then high 700 scores for good credit behavior.
The lower your new bucket scores, are I would assume the faster they would increase due to normal positive time forces in the FICO scoring system.
I think the real issue for me is to
be proactive in preparing for a bucket change. If I had a thin file that includes a BK, I think that I would make every effort to prepare the file to compete in a new bucket when the BK falls off.
Opening more tradelines four or five years before the BK falls off might increase my "Average of Account" position by the time a BK falls off. If I had twice as many tradelines (of similar age) than my new peers then I might not even get a score drop at all when I do get rebucketed.. My credit file might be substantially better than my new peers. Certainly applying for new credit (post bucket change) would generally produce less of a FICO ding.
Of course in the earlier days long before the BK fell off, all those extra open accounts could have reduced the former score. The initially low average age of the new accounts along with a BK could have been a somewhat riskier profile than that of my former peers.
My point is that if a person was asking your question
pertaining to a BK falling off, triggering a rebucket, I would say the game plan would be to plan for a rebucketing the whole time the BK is still in file. There might not even be a score drop when the rebucketing takes place.
Here is another situation.
I recently achieved an 800 FICO score with an average age of accounts of just under 6 years. I guessed that I might get a score bucket change once my average age reached 6 years. I could then have possibly lost my 800 score (for an undetermined length of time) due to the fact that I could be compared to others with higher average age.
I know that 5 years is sufficient to achieve an 800 FICO, so I saw no harm in opening another tradeline even if I took a temporary FICO hit. I could reasonably be assured that the score would return to 800+ within the year (before the average age of accounts hit 6 years).
I would only be wondering (as you are) about when I would get the 800 score back if I had not opened a new tradeline and allowed my average age to hit 6 years. When my average age (with the new tradeline) reaches 6 years in October I will see if my score does in fact go up with a bucket change. If the score goes down I will simply open a new tradeline and maintain an average age of 5 years again.
There is no way to predict with any accuracy the answer to your question since there are so many variables that come into play.
The best way to get your question answered is to provide more information about the specific nature of the bucket change. Others could give you feedback with data they have that is relevant to your particular situation.
Suppose that you asked how long it would take to get your 800 FICO back after losing it as a result of Average Age rebucketing, I would say wait a few months to see if the score rebounds quickly. If the score doesn't rebound I would suggest opening another tradeline and the 800 score would probably return quicker as a result of returning to the 5 year average age bucket.
Dealing with scoring buckets is a crap shoot. There is no guarantee about how the dice will role. Once you have a solid observation concerning your own actual bucket (and score) change you can share the info with others. In the meantime you can only post your own specific circumstances and see if others have any experience that is similar to the bucket change that you are contemplating.
All "Individual "Mileage" of course "Varies" a lot.
