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Regular Contributor
Posts: 197
Registered: ‎12-27-2015
0

What would cause a 60 point drop in 1 month?

[ Edited ]

The facts:

 

I have 3 derogs TL's (Charge Offs) all within 6 months of aging off. Aggregate balance approx $100K; I have two new positive TL's - a Secured credit card with a $200 line and 0% utilization and an auto loan that is on auto-pay so delinquency on either is not a factor. No credit use in between the crash 7 years ago and teh re-start 7 months ago.

 

In December 2016 one Charge Off aged off my credit file. The following month I lost 60 points.

 

Can anyone explain to me what happened? It seems whenever something that SHOULD improve my credit score happens, I lose points. When I paid off my mortgage in April 2016 I lost 40 points. At this rate in July I will have a credit file that shows 1 unused credit card with a low limit, 3 paid satis car loans, a paid satis mortgage, no derogatives and a score in the solid 400's. No mortgage, no debt, plenty of income, a 6-figure bank balance and I can't get credit to buy a pack of gum.

FICO 8 Scores
2/14/17,EFX - 614, 4 Derogs,TU - 621, 6 Derogs, EXP - 603, 3 Derogs
3/7/17, EFX - 579, TU - 595, EXP - 588, same Derogs
4/8/2017 EFX - 683, TU - 791, EXP - 605 All Chargeoffs removed from TU
5/8/17 EFX 750, TU 796, EXP 625 All chargeoffs removed from EFX
5/15/17 EFX 743; TU 794; EXP 715
6/1/17 EFX 762; TU 794; EXP715
Senior Contributor
Posts: 6,144
Registered: ‎04-11-2016

Re: What would cause a 60 point drop in 1 month?

A 60 point drop is very significant and something that is usually only achieved by the introduction of a negative item.  I suppose it could be achieved as well in going from 1% aggregate utilization to maxed-out utilization on some profiles, but certainly you would know if you did this Smiley Happy

 

I would look closely at your reports and see what changed between last month and this month.  Something negative was definitely added.  Maybe a past negative item that fell off was re-reported or somehow resurfaced.  Is it possible that one of your current accounts may have reported you late? 

 

Slightly off topic here, but the 40 point drop you received from paying off your mortgage is very typical when the mortgage is your only installment loan.  Once all current loans are closed out, FICO takes away the "credit mix" points that you previously had for having a current open installment loan that's almost paid off.

Regular Contributor
Posts: 197
Registered: ‎12-27-2015
0

Re: What would cause a 60 point drop in 1 month?

I mhave been watching my credit files like a hawk the past year - one Charge Off aged off in December 2016, that is the only change, and that happened the month before I lost the 60 points. I would think that losing a Charge Off would be a GOOD thing, not a bad one. The other two report every month like clockwork (and PLEASE, PLEASE, PLEASE report in July 2017 because I will have a FDCPA/FCRA suit in their hands so fast they will not see it coming).

FICO 8 Scores
2/14/17,EFX - 614, 4 Derogs,TU - 621, 6 Derogs, EXP - 603, 3 Derogs
3/7/17, EFX - 579, TU - 595, EXP - 588, same Derogs
4/8/2017 EFX - 683, TU - 791, EXP - 605 All Chargeoffs removed from TU
5/8/17 EFX 750, TU 796, EXP 625 All chargeoffs removed from EFX
5/15/17 EFX 743; TU 794; EXP 715
6/1/17 EFX 762; TU 794; EXP715
Established Contributor
Posts: 514
Registered: ‎12-21-2009
0

Re: What would cause a 60 point drop in 1 month?

Sometimes losing a bad account drops your AAoA.

 

Where are you getting your scores from?  If it's from creditkarma, you can disregard the scores, they are FAKO.

Regular Contributor
Posts: 197
Registered: ‎12-27-2015
0

Re: What would cause a 60 point drop in 1 month?

[ Edited ]

Credit Karma, Capital One, Credit Sesame and Trans Union itself all score within 1 point of each other, so while the number itself may be questionable, it's general level and accuracy of scoring is pretty reliable.

FICO 8 Scores
2/14/17,EFX - 614, 4 Derogs,TU - 621, 6 Derogs, EXP - 603, 3 Derogs
3/7/17, EFX - 579, TU - 595, EXP - 588, same Derogs
4/8/2017 EFX - 683, TU - 791, EXP - 605 All Chargeoffs removed from TU
5/8/17 EFX 750, TU 796, EXP 625 All chargeoffs removed from EFX
5/15/17 EFX 743; TU 794; EXP 715
6/1/17 EFX 762; TU 794; EXP715
Super Contributor
Posts: 8,762
Registered: ‎10-03-2008
0

Re: What would cause a 60 point drop in 1 month?

One other factor that we don't hear much of is rebucketing as it relates to FICO Scores. It has been so long since anything has been mentioned on this site I forgot more than I remember. Don't know that re-bucketing would hit so hard it would decrease 60 points. Since you have several different scores it is likely accurate but why ... understand that is the question?
Starting Score: 848
Current Score: 826
Goal Score: 850


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Senior Contributor
Posts: 6,144
Registered: ‎04-11-2016
0

Re: What would cause a 60 point drop in 1 month?


Flyingifr wrote:

Credit Karma, Capital One, Credit Sesame and Trans Union itself all score within 1 point of each other, so while the number itself may be questionable, it's general level and accuracy of scoring is pretty reliable.


CK, CO and SC all provide a VantageScore 3.0 score from TU.  Those are not FICO scores.

 

I suggest going to Credit Check Total and for $1 you can get all 3 of your FICO 08 scores.  Perhaps whatever the 60 point issue is happens to be something that doesn't impact the FICO models but does on VS 3.0.  Who knows.  That would be a start, though.

Senior Contributor
Posts: 6,144
Registered: ‎04-11-2016
0

Re: What would cause a 60 point drop in 1 month?


stellar wrote:

Sometimes losing a bad account drops your AAoA.



While this is can definitely be true, there's no realistic way that an AAoA drop would result in a 60 point FICO score drop.

Regular Contributor
Posts: 247
Registered: ‎05-12-2008
0

Re: What would cause a 60 point drop in 1 month?


Flyingifr wrote:

The facts:

 

I have 3 derogs TL's (Charge Offs) all within 6 months of aging off. Aggregate balance approx $100K; I have two new positive TL's - a Secured credit card with a $200 line and 0% utilization and an auto loan that is on auto-pay so delinquency on either is not a factor. No credit use in between the crash 7 years ago and teh re-start 7 months ago.

 

In December 2016 one Charge Off aged off my credit file. The following month I lost 60 points.

 

Can anyone explain to me what happened? It seems whenever something that SHOULD improve my credit score happens, I lose points. When I paid off my mortgage in April 2016 I lost 40 points. At this rate in July I will have a credit file that shows 1 unused credit card with a low limit, 3 paid satis car loans, a paid satis mortgage, no derogatives and a score in the solid 400's. No mortgage, no debt, plenty of income, a 6-figure bank balance and I can't get credit to buy a pack of gum.


Hi Steve,

 

Credit Karma, Capital One, Credit Sesame and Trans Union all give you your Vantage score. Few, if any, lenders use this scoring model. FICO uses the Average Age of Accounts as one of its scoring parameters. It includes both open and closed accounts.

 

The Vantage model uses Average Age of Open Accounts and also gives it way too much weight. The Vantage model isn't factoring in the ages of your paid mortgage or auto loans.

 

Six months from now, when those 3 derogs are gone and your secured card and car loan have some more age on them, you'll get a nice score bump.

 

BTW, you need 2 more revolving accounts. Best scores are attained when you have at least 3.


FICO 08:Jan 18, 2017: EX 800 EQ 725 TU 799
FICO 08:Feb 10, 2017: EX 788 EQ 772 TU 791 (post New Year's app spree)
In the garden as of 1/4/2017. Will remain for all of 2017.
Valued Contributor
Posts: 2,064
Registered: ‎04-01-2015

Re: What would cause a 60 point drop in 1 month?


heavyjay wrote:

Flyingifr wrote:

The facts:

 

I have 3 derogs TL's (Charge Offs) all within 6 months of aging off. Aggregate balance approx $100K; I have two new positive TL's - a Secured credit card with a $200 line and 0% utilization and an auto loan that is on auto-pay so delinquency on either is not a factor. No credit use in between the crash 7 years ago and teh re-start 7 months ago.

 

In December 2016 one Charge Off aged off my credit file. The following month I lost 60 points.

 

Can anyone explain to me what happened? It seems whenever something that SHOULD improve my credit score happens, I lose points. When I paid off my mortgage in April 2016 I lost 40 points. At this rate in July I will have a credit file that shows 1 unused credit card with a low limit, 3 paid satis car loans, a paid satis mortgage, no derogatives and a score in the solid 400's. No mortgage, no debt, plenty of income, a 6-figure bank balance and I can't get credit to buy a pack of gum.


Hi Steve,

 

Credit Karma, Capital One, Credit Sesame and Trans Union all give you your Vantage score. Few, if any, lenders use this scoring model. FICO uses the Average Age of Accounts as one of its scoring parameters. It includes both open and closed accounts.

 

The Vantage model uses Average Age of Open Accounts and also gives it way too much weight. The Vantage model isn't factoring in the ages of your paid mortgage or auto loans.

 

Six months from now, when those 3 derogs are gone and your secured card and car loan have some more age on them, you'll get a nice score bump.

 

BTW, you need 2 more revolving accounts. Best scores are attained when you have at least 3.


VantageScore 3.0 uses both open and closed accounts. Credit Karma reports VantageScore but, calculated factor summaries (AAoA, utilization) are directly from CK - not VS. Somewhere on the VantageScore website it states they use open + closed - IV provided a link to that previously.

 

Side note: Credit Karma, Credit.com and Credit Sesame all report VS 3 score. However, some sites show AAoA based on open accounts only while others display AAoA based on open + closed. This is another illustration of differences in 3rd party calculations - that appear to be provided by VS but, are not. The only thing VantageScore provides to these companies are the scores and depending on the relationship, reason statements.

 

VantageScore does weigh factors quite differently from Fico. For those that don't have access to a free Fico 08 score through a credit card; a free Experian Fico 08 is available by signing up for Discover credit scorecard. You don't need to sign up for one of their credit cards to gain access and the score does not generate a HP.

 

https://www.discover.com/free-credit-score/

Fico 8: .......EQ 850 TU 850 EX 850 (3/2017)
Fico 9: .......EQ 850 TU 850 EX 850 (3/2017)
Fico 4 .....:. EQ 804 TU 823 EX 830 (3/2017) EX Fico 98: 839 (3/2017)
VS 3.0:...... EQ 832 TU 832 EX 832 (3/2017)
Fico 8 BC:. EQ 887 TU 899 EX 900 (3/2017)
CBIS: ........LN Auto 940 LN Home 870 TU Auto 902 TU Home 950 (4/2017)

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