Why is report with one CO higher than the one without any?

[Anonymous]

Right when I think i am actually learning a thing or two about credit scoring I get confused. I pulled both scores and reports from myfico and as I am looking through them I see that EQ is now free of the 2 collections I had. My score is now 568. Then I see TU at 574 with ONE COLLECTION!! Everything else is identical, right down to inquiries. What gives? Over time the simulator shows a higher score with EQ than TU. But why is it higher now? 

[daisyduke]

I am pretty sure that TU Fico and EQ Fico are DIFFERENT ALGORITHMS...therefore the score calculations would be different. Daisy could be wrong, but I'm prety sure....which is why they calculate different scores. I have for example more "baddies" on my EQ but my score is 60 points higher..Why b/c somes being bad can be good - it helps with my history....

I hope this helps.

[haulingthescoreup]

It's true that they are different scoring algorithms. My young adult kids have identical credit reports (each kid's 3 reports are identical to one another, that is), and yet they have different FICO scores, depending on the bureau. EQ hates lates, we always say, and that's pretty much why my EQ score is 25-30 points lower than my TU score.

Anyway, if you have a lot of run of the mill baddies and highish util, the report without the collections puts you in a positive scoring bucket, and you might not look so great compared to the other folks there. Whereas the report that still has collections has you still in a negative scoring bucket, and you might be in better shape than a lot of your peers, so you score better.

Concentrate on GW'ing your remaining lates and getting your util down, and that will keep your scores moving up.

[Anonymous]

I wish this "rebucketing" stuff was a lot simpler to understand. It almost seems that in the short run I'm better off with the collection item but for the long run they need to come off. That is what is keeping more score on TU from climbing at the same rate as EQ. Thanks for the posts guys....

[haulingthescoreup]

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riknunez wrote:
I wish this "rebucketing" stuff was a lot simpler to understand. It almost seems that in the short run I'm better off with the collection item but for the long run they need to come off. That is what is keeping more score on TU from climbing at the same rate as EQ. Thanks for the posts guys....

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Think of it as high school. You can be in the Exploring the Fun World of Numbers class, and look like pretty hot stuff, or you can find yourself in the AP prep Calculus AB class, scrambling for C-minuses. But in the end, you'll have the opportunity to go further in your calc class, as long as you stick with it. A bit humbling at first, though, that's for sure.

[Anonymous]

Good analogy.