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New Contributor
mmts0717
Posts: 51
Registered: ‎12-04-2007

understanding the scoring system

Hi, I am new to this board.  I have a question and want to see if anybody can explain this to me.
I signed up EQ score 567
12/03 credit alert that score dropped to 539 because I disputed 2 items.
12/08 credit alert score 596 - ok on the right track
12/13 credit alert - score dropped to 559, judgement that was not mine was removed from my credit file.
In a nutshell, how can disputing information and having something removed from your report that is not even yours that is derog, hurt your score?  With the plus/minus system, I am down 8 points from where I started.  This does not make any sense to me.  HELP.
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Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: understanding the scoring system

If the judgment was older than the legitimate items on your credit history, it might actually have been helping by contributing age. So when it was removed, you lost that age. (This is a common reason for a score drop after a derog is removed.)

When you disputed the two items, their age and credit limits (helpful factors) were temporarily removed from score calculations, so that might have helped cause the second score drop. Did the score jump up to 596 happen after the disputes were resolved?

Most likely, though, there were changes in your various balances going on during all this that contributed to or canceled out some of the other score changes. And besides changing balances, there are all sorts of background things going on with your reports that can make your score hop around. Weird, isn't it?

But in case there's something else happening, can you post what is on your reports? Maybe the people here can find another explanation.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007

Re: understanding the scoring system

Boy- HTSU is slipping today.

You are now in a "bucket" with peers that do not have a public record.

Keep paying on time, keep disputing inaccurate information, write GW letters for valid lates and keep Revolving utilization down.



mmts0717 wrote:
Hi, I am new to this board. I have a question and want to see if anybody can explain this to me.
I signed up EQ score 567
12/03 credit alert that score dropped to 539 because I disputed 2 items.
12/08 credit alert score 596 - ok on the right track
12/13 credit alert - score dropped to 559, judgement that was not mine was removed from my credit file.
In a nutshell, how can disputing information and having something removed from your report that is not even yours that is derog, hurt your score? With the plus/minus system, I am down 8 points from where I started. This does not make any sense to me. HELP.


New Contributor
mmts0717
Posts: 51
Registered: ‎12-04-2007

Re: understanding the scoring system

I am slowing learning about this "bucket system".     That would make sense.  It just seems crazy that in a span of 15 days, that my credit score was jump around like this.   Thanks for the reply
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Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: understanding the scoring system


Timothy wrote:
Boy- HTSU is slipping today.

You are now in a "bucket" with peers that do not have a public record.

Ha! Boy, you're right --that sailed right over me. I'm just not tuned in on that bucket category. :smileyvery-happy:

OP, since you're subscribed to ScoreWatch, did one of your alerts contain this message? It would probably be toward the end of the alert:
Changes to your credit report

* 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.
This is the veiled reference to your new bucket assignment. I lost 15 points in one day when my longest credit account changed (added husband's Discover card.) That was two months ago, and I've made it all back and more.

If you never got that message though, let us know, so that I can go nyah nyah nayh at Timothy! :smileywink:
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Moderator Emeritus
Timothy
Posts: 9,252
Registered: ‎03-19-2007

Re: understanding the scoring system

SW would not indicate this- as it did not know there was a PR on the report.



haulingthescoreup wrote:

Timothy wrote:
Boy- HTSU is slipping today.

You are now in a "bucket" with peers that do not have a public record.

Ha! Boy, you're right --that sailed right over me. I'm just not tuned in on that bucket category. :smileyvery-happy:

OP, since you're subscribed to ScoreWatch, did one of your alerts contain this message? It would probably be toward the end of the alert:
Changes to your credit report

* 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.
This is the veiled reference to your new bucket assignment. I lost 15 points in one day when my longest credit account changed (added husband's Discover card.) That was two months ago, and I've made it all back and more.

If you never got that message though, let us know, so that I can go nyah nyah nayh at Timothy! :smileywink:


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Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: understanding the scoring system

Why not? I got this notice when not a single thing happened on my reports. The FICO wheels apparently just turned, saw my new oldest account age, and cranked me into a new bucket. And ta-da, there was the alert.

If OP was re-bucketed, FICO must have been aware of the triggering change, right?
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Established Contributor
jackg
Posts: 554
Registered: ‎04-26-2007

Re: understanding the scoring system

htsu,
 Your reference to a "the judgement was older than the legitimate items on your credit history, it might actually have been helping by contributing age. So when it was removed you lost that age." has my wheels spinning.
 
I've viewed many of your almost 3,000 posts (congrats) and usually I'm in agreement or at least understand the "why" for your comments but this one has me stumped. I thought that "aging" of accounts were relative to revolving/installment/mortgage credit accounts. Please help me understand, I want to learn and this is the first I've heard of this. Thanks.
 
In advance, I'm not being a smart a**, I'm serious and I don't want you to take this the wrong way.
4/10/14
EX=727
EQ=717
TU=718
New Contributor
mmts0717
Posts: 51
Registered: ‎12-04-2007

Re: understanding the scoring system

Actually, I did not get a credit alert. I just pulled my credit that day and got the score. To, this date, almost a week, I have not gotten an alert about the judgement being removed but it has been
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Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: understanding the scoring system

[ Edited ]

jackg wrote:
htsu,
Your reference to a "the judgement was older than the legitimate items on your credit history, it might actually have been helping by contributing age. So when it was removed you lost that age." has my wheels spinning.
I've viewed many of your almost 3,000 posts (congrats) and usually I'm in agreement or at least understand the "why" for your comments but this one has me stumped. I thought that "aging" of accounts were relative to revolving/installment/mortgage credit accounts. Please help me understand, I want to learn and this is the first I've heard of this. Thanks.
In advance, I'm not being a smart a**, I'm serious and I don't want you to take this the wrong way.

Hi, jackg, no prob! If the oldest or nearly oldest credit account on your report is removed, by falling off from old age or for some other reason, your total credit history is suddenly younger, maybe by a lot if there was a gap between when that account was opened and your next oldest account. Also, depending on how many other accounts you have, it might drop your average account age as well.

I have an example in reverse: the oldest account on my EQ and TU used to be 12 years old, and my average account age was 3 years. In October, I went on my husband's 18-year-old Discover as an AU, and suddenly my oldest account was 18 years and average age was 4 years. If I decided to come back off the card, I would be back to the 12 + 3 scenario. When I first added the account, my EQ jumped from 618 to 651 due to the combination of increased CL and increased account age. Of course, once this percolated all the way through the formula, it moved me into a new bucket, one made upof people with older accounts, and my dismal collection of late payments punted me back down to 636.

Account age isn't a huge part of your score, but it's there. That's one reason why I tell people to think twice before GW'ing an old closed account, because the creditor might just delete the whole thing, instead of just the baddie, and there goes that nice long history. It's not that big a deal for people with a lot of tradelines going back a number of years, because the removal of that TL's history is diluted by all their other credit.

I don't really want to go joint on the AU account, and if/ when FICO 08 finally kicks in, and the 18-year-old AU account is no longer counted, I will have a real decision to make. My next three oldest accounts are all closed (2 loans, one revolving), and when they fall off, I'm really going to be hanging out there in the cold breeze. I think there's another 3-4 year gap before the next-again oldest account, and I could find myself in a bucket with a bunch of 28-year-old go-getters. Right now, I'm deciding not to decide! :smileywink: Hope that makes sense.

edit: PS--I think you've read more of my posts than I have! You're a brave guy.

Message Edited by haulingthescoreup on 12-17-2007 03:43 PM
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

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