topic Re: decrease 22 points?? in Understanding FICO® Scoring

decrease 22 points??

helpmeplzinokc — Mon, 25 Aug 2008 12:35:35 GMT

got an alert from sw today that my cs had dropped 22 points? please somebody explain this to me if you can. i just got an increase last week of 20points now this. i sent a letter to all 3 cb's about a few things that were incorrect on my cr. one my a first premier acct from 4/2001 that should have dropped of my report by now. the other main thing was paid tax liens. i also paid my cc down to 9% util. sw alert below:

FIRST PREMIER (XXXXXXXXXXXX[Edited])

Show/Hide Details

Account opened: 4/2001
Description: Consumer disputes - reinvestigation in process
Account closed at consumer's request
Charge off account

Previously reported Newly reported Balance: $331 $331 Past due: $331 $331 Status: Bad Debt; Placed for collection; Bad Debt; Placed for collection; Last activity: 10/1/2001 10/1/2001 Description: Account closed at consumer's request
Charge off account
Consumer disputes - reinvestigation in process
Account closed at consumer's request
Charge off account

Edited to remove personal information. Please do not share personal information on the forums. Please read the myFICO Forums TOS.

-sidewinder

Message Edited by sidewinder on 08-25-2008 07:35 AM

Re: decrease 22 points??

Anonymous — Mon, 25 Aug 2008 12:38:13 GMT

The score decrease is because the account history is removed from the FICO scoring during a dispute.

The fact that your score dropped means this account was helping more than hurting.

If the account remains, your score should bounce back.

Re: decrease 22 points??

helpmeplzinokc — Mon, 25 Aug 2008 12:42:02 GMT

sidewinder wrote:

The score decrease is because the account history is removed from the FICO scoring during a dispute.

The fact that your score dropped means this account was helping more than hurting.

If the account remains, your score should bounce back.

i am wrong in thinking that you want a collection account off your credit report after the 7 years? does this mean when it does fall off after sol that i will see a permanent drop? also wouldn't the paid tax liens coming after after 7 years also raise my score?

Re: decrease 22 points??

Anonymous — Mon, 25 Aug 2008 13:32:37 GMT

I think the original poster is onto something here; a glitch in the system. Many times, I have requested an investigation on a particular account (which did have inaccuracies), my score did NOT change when I requested the investigation, and when the results came back that it was "change" to the "exact same thing", I lost points. I wrote EQ about this yesterday, because it just happened to me again!

Re: decrease 22 points??

athensguy — Mon, 25 Aug 2008 13:42:40 GMT

Your score can drop because of two things when you dispute an old derog. It was helping your average age significantly, and now that it's not being counted, that got worse. It not being counted can also send you to a different more favorable score bucket where you don't score as well, but you have a higher ceiling as long as you continue to pay on time. Even if your score goes down, it's preferable to have a clean report.

One reason your score can go down after a dispute that was verified is because the reported date becomes more recent. It shouldn't happen that way, but it seems to.