topic Re: 46 point score drop after collection removal! in Rebuilding Your Credit

46 point score drop after collection removal!

Anonymous — Sat, 13 Feb 2021 13:36:52 GMT

I have been rebuilding my credit for about 6 years and my scores were getting up in the 670's. I got a notification that a collection was removed from Transunion and my score dropped 46 points!! I get the scores through Myfico.com, not Credit Karma so they should be relatively accurate. What the heck??

Re: 46 point score drop after collection removal!

thornback — Sat, 13 Feb 2021 13:46:40 GMT

Was this your last collection account?

Sometimes, scorecard reassignment from the removal of derogatory can result in a score drop rather than gain.

If this was the only derogatory you would have gone from a public record scorecard to a clean scorecard. If a chargeoff is still present, then you would have gone from a public records scorecard to a delinquency scorecard.

If neither is the case and other collections exist, I would suggest pulling your full report to review for any other changes that may have caused the drop.

Re: 46 point score drop after collection removal!

Anonymous — Sat, 13 Feb 2021 13:49:17 GMT

I still have 2 collections on my report that are due to drop off soon. I have scoured my credit report and there are no other changes. Experian and Equifax didn't drop, just Transunion

Re: 46 point score drop after collection removal!

thornback — Sat, 13 Feb 2021 13:57:50 GMT

So Experian and Equifax also removed the collection account resulting in no score change?

And you're sure you pulled a TU report that updated today, correct? I only ask because when you receive a myFICO alert, it only provides an updated score, it does not update the actual report until a new 3-bureau report is pulled per your subscription.

Re: 46 point score drop after collection removal!

Anonymous — Sat, 13 Feb 2021 14:05:54 GMT

I pulled one yesterday. I just looked and the collection is still showing in Equifax and Experian. This was the last one. I still have a few 30 and 60-day lates on all 3 (from 2016)

Re: 46 point score drop after collection removal!

thornback — Sat, 13 Feb 2021 14:07:16 GMT

@Anonymous wrote:
I pulled one yesterday. I just looked and the collection is still showing in Equifax and Experian. This was the last one. I still have a few 30 and 60-day lates on all 3 (from 2016)

So - to clarify- this was your last collection on TU that was removed? Only late payments remain?

Re: 46 point score drop after collection removal!

Anonymous — Sat, 13 Feb 2021 14:08:56 GMT

Yes, I am heartbroken. I have worked so hard to get back to "normal" credit

Re: 46 point score drop after collection removal!

thornback — Sat, 13 Feb 2021 14:17:36 GMT

@Anonymous wrote:
Yes, I am heartbroken. I have worked so hard to get back to "normal" credit

Aww... don't be heartbroken. I know it doesn't seem like it right now - but scorecard reassignment is a good thing. Your ceiling for how high your scores can go - and the speed in which they will rise -- has increased. You are actually improving overall, despite what the score says.

A clean(er) report is better than a dirty report anyday. Keep it in perspective - what do lenders see - a few late payments. No collections, no chargeoffs. It's a good thing.

If it makes you feel any better - I had the same experience when I finally got rid of my last derog - a paid chargeoff I managed to goodwill away. I was expecting big gains but instead, my scores dropped 30-40 points across the board. I was reassigned to a clean scorecard. My feelings were a bit hurt but my reports were CLEAN - and that was my goal to begin with. Over the next few months, I saw a steady increase in my scores and shortly after, they were higher than they ever were before.

This happens, not to everyone but to many. You usually hear about folks getting big gains after removal but that's not always the case- it depends on how your profile stacks up in the new scorecard. Try not to let it get you down... no place to go now but up. So I'm going to say congratulations even if you don't feel like being congratulated right now.

Re: 46 point score drop after collection removal!

Anonymous — Sat, 13 Feb 2021 14:23:07 GMT

I can't tell you how much I appreciate your help. I will hang in there and see what happens. I'm not even looking for credit at this point, it's a matter of finally getting out of the hole

Re: 46 point score drop after collection removal!

refereeguy1390 — Sat, 13 Feb 2021 14:25:12 GMT

You're still making progress. You moved from the top rung of a really bad ladder (scorecard) that could collapse at anytime to the bottom rung of a more sturdy one. You now have more rungs to climb in the coming months.

Re: 46 point score drop after collection removal!

thornback — Sat, 13 Feb 2021 14:25:24 GMT

You are basically out of the hole 🤗 the scores will follow -- I promise.

Are you working on getting rid of those late payments too or plan on just letting them stay til they fall off?

Re: 46 point score drop after collection removal!

thornback — Sat, 13 Feb 2021 14:29:19 GMT

@refereeguy1390 wrote:
You're still making progress. You moved from the top rung of a really bad ladder (scorecard) that could collapse at anytime to the bottom rung of a more sturdy one. You now have more rungs to climb in the coming months.

Well said.

Re: 46 point score drop after collection removal!

Anonymous — Sat, 13 Feb 2021 14:44:35 GMT

What should I do with the late payments? They are only on one account, GM Financial. We had the car repo'd and brought the payments back up to date. Would they forgive something like that?

Re: 46 point score drop after collection removal!

Anonymous — Sat, 13 Feb 2021 14:52:42 GMT

That was back in 2014

Re: 46 point score drop after collection removal!

thornback — Sat, 13 Feb 2021 14:59:23 GMT

@Anonymous wrote:
What should I do with the late payments? They are only on one account, GM Financial. We had the car repo'd and brought the payments back up to date. Would they forgive something like that?

You won't know til you try. People goodwill lates and chargeoffs all the time.

Basically, you send letters to the creditor explaining why the lates occurred (financial hardship, medical, oversight - whatever it was), take responsibility for the mishap, and request they remove as a good faith gesture.

Some reading on that process --

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/The-Saturation-Technique-Best-GW-adjustment-...

Some success stories--

https://ficoforums.myfico.com/t5/forums/searchpage/tab/message?advanced=false&allow_punctuation=fals...

Goodwills sometimes require multiple attempts, and they sometimes don't work - but it's worth trying because when they do work... it's glorious. It took me 1.5 years of letters to successfully goodwill away my last derogatory - I was determined and ultimately successful. Some get lucky and see success after the first try... most have several attempts before success... and some never see success.

You have nothing to lose from trying and everything to gain...

Re: 46 point score drop after collection removal!

Anonymous — Sat, 13 Feb 2021 15:02:17 GMT

@Anonymous wrote:
That was back in 2014

Depends on when they happened in 2014, but they will age off this year.

With EX, they drop entire strings of lates, so if they were consecutive lates, you will drop them all at once. If they were broken up, they will drop off 1 or a chunk at a time.

TU & EQ drop lates one by one, every month.

You are closer to clean report than you think!

You may want to double check exactly when the lates were so you know whether it is worth even doing a GW campaign.

Re: 46 point score drop after collection removal!

thornback — Sat, 13 Feb 2021 15:07:05 GMT

@Anonymous wrote:
That was back in 2014

I thought the late payments on the tradeline were from 2016 (your earlier post)? If the tradeline closed in good standing, then your goodwill will only request removal of the late notations - not the entire tradeline. You want to keep the tradeline for history.

If the late payments are from 2014 then they'll drop off soon (just the late notations will fall from the payment history) - this year. So it wouldnt be worth starting a goodwill campaign- just wait it out.

Re: 46 point score drop after collection removal!

Anonymous — Sat, 13 Feb 2021 15:05:12 GMT

Thank you so much!!

Re: 46 point score drop after collection removal!

Anonymous — Sat, 13 Feb 2021 15:13:08 GMT

@thornback wrote:
@Anonymous wrote:
That was back in 2014
I thought the late payments on the tradeline were from 2016 (your earlier post)? If the tradeline closed in good standing, then your goodwill will only request removal of the late notations - not the entire tradeline. You want to keep the tradeline for history.

If the late payments are from 2014 then they'll drop off soon (just the late notations will fall from the payment history) - this year. So it wouldnt be worth starting a goodwill campaign- just wait it out.

OP did say 2016.

@refereeguy1390 were the lates from 2016 or 2014? Or both?

If 2016 or both, then you would definitely want to go on a GW campaign, or it will be another 2+ years before those lates ages off.

Re: 46 point score drop after collection removal!

thornback — Sat, 13 Feb 2021 15:30:35 GMT

Here's another really good thread breaking down the anatomy of Goodwills (with examples) in case you decide to give it a try:

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Stories/td-p/1573680