topic Baddie gone, score went down in Understanding FICO® Scoring

Baddie gone, score went down

907grown — Fri, 27 Nov 2009 08:19:40 GMT

So I have this acct from LVNV funding, it was a sears card that went bad. Sears sent it to them for collection. It does fall under my credit items as opposed to a collection acct. Anyway, it just came off this month and my score dropped 4 points, not a biggie, but I am not sure why.

Re: Baddie gone, score went down

Jazzzy — Fri, 27 Nov 2009 15:27:06 GMT

Was this your last baddie?

Is it possible that you have been rebucketed? What else has changed on your reports since you last checked your score?

Re: Baddie gone, score went down

907grown — Mon, 30 Nov 2009 11:20:50 GMT

Nothing, this came as an alert from FICO. The alert just said that the account had changed. It gave me a number of reasons why the score would go up, but nothing about why it went down.

Thank You

Re: Baddie gone, score went down

Anonymous — Mon, 30 Nov 2009 13:38:48 GMT

If this was your last baddie falling off it is possible you were rebucketed.

Re: Baddie gone, score went down

Anonymous — Mon, 30 Nov 2009 20:18:13 GMT

Was this one of your older reported accounts?

Sometimes a derog being removed can result in a score drop due to the loss of account age/ AAoA or oldest account. After 2 years, the derog nature counts less and less in FICO scoring until eventually the age actually helps score more than the derog hurts and once removed you can see a small drop.

However, IMO, it is better to have a cleaner file, albeit a little lower score, than having a little higher score but a derog reported.

IMO

Re: Baddie gone, score went down

Anonymous — Mon, 30 Nov 2009 21:10:52 GMT

@Anonymous wrote:
Was this one of your older reported accounts?

Sometimes a derog being removed can result in a score drop due to the loss of account age/ AAoA or oldest account. After 2 years, the derog nature counts less and less in FICO scoring until eventually the age actually helps score more than the derog hurts and once removed you can see a small drop.

However, IMO, it is better to have a cleaner file, albeit a little lower score, than having a little higher score but a derog reported.

IMO

I totally agree with this. The less explaining the better.

Re: Baddie gone, score went down

907grown — Sat, 05 Dec 2009 06:09:33 GMT

Yes, this was fairly old 5-6 years, also, just this month, a reposession from Wells Fargo fell off~! This acct ages back to 2002, it has been paid off for years, but has just sat there.... Just came off, will this cause a further drop?! I do agree, it makes more sense to have less bad stuff on the file. These points should come back sometime soon right?