topic Re: 53 point score drop.... in Rebuilding Your Credit

53 point score drop....

Anonymous — Tue, 23 Feb 2021 22:05:07 GMT

I posted on here a few weeks ago about a 42 point drop in Transunion after a charge off was removed. My last one just fell off Experian and my score dropped 53 points.... Just venting, I was informed about buckets

Re: 53 point score drop....

Anonymous — Wed, 24 Feb 2021 03:32:04 GMT

What's the source of your scores, and have you pulled your reports to see what has changed?

Re: 53 point score drop....

AllZero — Wed, 24 Feb 2021 08:22:49 GMT

@Anonymous wrote:
What's the source of your scores, and have you pulled your reports to see what has changed?

For context. Which may or may not help. https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/46-point-score-drop-after-collection-removal/m-p/6255565

Re: 53 point score drop....

thornback — Wed, 24 Feb 2021 03:47:53 GMT

@Anonymous wrote:
What's the source of your scores, and have you pulled your reports to see what has changed?

@Anonymous OP is using myFICO. The last time scores were pulled the day prior to removal. The removal (their last major derog on TU) appeared to be the only change. OP also has a few late payments (30, 60 day) from 2016 so still dirty.

But @Anonymous -- in our last convo you said your major derogs were collections - now you mention a chargeoff. Can you clarify whether these removals are chargoffs or collections please?

Ty @AllZero 😊

Re: 53 point score drop....

AllZero — Wed, 24 Feb 2021 04:08:29 GMT

@thornback wrote:
Ty @AllZero 😊

Re: 53 point score drop....

Anonymous — Wed, 24 Feb 2021 07:36:22 GMT

And remember age is going to play a factor and now we don’t know whether it’s PR or delinquency card.

Re: 53 point score drop....

Remi1 — Wed, 24 Feb 2021 08:06:19 GMT

I'm not sure if this is typical to most experiences or not.. but my best friend who I was helping with their credit score had their collections paid and deleted/drop off the reports and was expecting a big bump on their next month's update, but got a 40-50 point drop instead, then the following month it shot up a little over 100 points. Which made up for the drop and then some. Again, not sure if this is normal but keep an eye on your scores and see what they do in the next month or two?

Re: 53 point score drop....

Anonymous — Wed, 24 Feb 2021 08:21:25 GMT

That’s a good point a lot of times they update and then delete.

Re: 53 point score drop....

Anonymous — Wed, 24 Feb 2021 10:59:04 GMT

I am a relative newbie, I don't post often so I don't have the terminology down. I get my scores from Myfico and I monitor almost daily because I have rebuilding so very carefully. I had (a lot) of collections from 2014, which were settled and paid. They fell off due to the 5 year rule in NY. There were 3 charge offs that went into collection but the creditor pulled them back because I emailed them; those were settled also. Because I had them back as charge offs, they were then 7 years (I thought I was helping). One fell off a few months ago, another that was only on Transunion fell off two weeks ago (42 point drop) now the other just came off Experian so 53 point drop. I have one late with GM remaining from 2016 which I just emailed about. It's very discouraging

Re: 53 point score drop....

thornback — Wed, 24 Feb 2021 15:25:24 GMT

@Anonymous wrote:
I am a relative newbie, I don't post often so I don't have the terminology down. I get my scores from Myfico and I monitor almost daily because I have rebuilding so very carefully. I had (a lot) of collections from 2014, which were settled and paid. They fell off due to the 5 year rule in NY. There were 3 charge offs that went into collection but the creditor pulled them back because I emailed them; those were settled also. Because I had them back as charge offs, they were then 7 years (I thought I was helping). One fell off a few months ago, another that was only on Transunion fell off two weeks ago (42 point drop) now the other just came off Experian so 53 point drop. I have one late with GM remaining from 2016 which I just emailed about. It's very discouraging

Chargeoffs are included in the age metrics for scoring (collections are not). Sounds like the point loss is combo of scorecard reassignment and loss of age (i think the bulk of the loss is coming from the loss of age).

Re: 53 point score drop....

Anonymous — Wed, 24 Feb 2021 16:07:49 GMT

That makes sense, they were my oldest accounts

Re: 53 point score drop....

thornback — Wed, 24 Feb 2021 16:11:12 GMT

@Anonymous wrote:
That makes sense, they were my oldest accounts

Remember - clean reports are better than higher scores any day. Your scores will recover.

What is the age of your oldest account now?

3 years 6 months

Anonymous — Wed, 24 Feb 2021 16:22:57 GMT

3 years 6 months

Re: 3 years 6 months

thornback — Wed, 24 Feb 2021 16:28:56 GMT

@Anonymous wrote:
3 years 6 months

Is that a revolving (credit card) account or a loan? If it's a loan, what's the age of your oldest revolver?

And do you know your current average age of accounts (aaoa)? I think myFICO provides that for you as well. Sorry for all the questions, just trying to get a better picture of your profile as it stands now.

Also - have you started a goodwill campaign for the late payments yet?

Re: 53 point score drop....

CGeorge — Wed, 24 Feb 2021 16:35:49 GMT

This drop should be only temporary - that happened to me as well. It took about three months to see my score "magically" come back...

Re: 3 years 6 months

Anonymous — Wed, 24 Feb 2021 17:16:03 GMT

I'm sorry, as I said I don't know all the lingo. I just checked and it says my oldest account is 15 years 5 months, average age of accounts 3 years 6 months. So those weren't my oldest

Re: 3 years 6 months

thornback — Wed, 24 Feb 2021 17:42:11 GMT

@Anonymous wrote:
I'm sorry, as I said I don't know all the lingo. I just checked and it says my oldest account is 15 years 5 months, average age of accounts 3 years 6 months. So those weren't my oldest

Please don't apologize. This stuff can be very confusing when first starting out.

So... age of your oldest account apparently was not affected, but your average age of accounts (AAoA) may have been (happen to know what your AAoA was before the charge-off was removed?).

Aside: For aging, most of us actually go so far as to use an excel spreadsheet to track changes - listing all of our accounts and their open dates; the spreadsheet can be set up to auto-calculate age for you so you always have this info handy. I know it probably sounds like too much but it really isn't and you certainly don't have to do it but if you really want to dig into how scoring works for your profile, it would help. Plus, everytime you post about a score change folks will likely ask about age factors. If you'd like a template (calculations ready to go, you just have to fill in the account info), let me know.

I also suggest reading this thread when you feel up to it -- it's kinda long - so maybe take one section at a time, but it's incredibly informative and helpful in understanding FICO, including the different age metrics and how they affect scoring / scorecards.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/General-Scoring-Primer-and-Version-8-Master-Thread-pub-5-17-20/m-p/6023348

Re: 3 years 6 months

Anonymous — Wed, 24 Feb 2021 22:20:32 GMT

It would be nice to know the change in average age of revolving accounts. What remaining derogatories do you have OP?

Re: 3 years 6 months

Anonymous — Thu, 25 Feb 2021 00:47:32 GMT

I only have one 30 day late with GM Financial from 2016. I emailed them to see if they would delete it, but they didn't respond. My credit usage is high, about 50% overall, and I am working on paying down cards.

Re: 3 years 6 months

Anonymous — Thu, 25 Feb 2021 17:57:37 GMT

@Anonymous wrote:
I only have one 30 day late with GM Financial from 2016. I emailed them to see if they would delete it, but they didn't respond. My credit usage is high, about 50% overall, and I am working on paying down cards.

@Anonymous OK if all charge-offs and collections are gone and the only derogatory you have is a 30 day late, then you are in a clean scorecard. Since the 30 day late is over two years old, most of its scoring impact is gone, but it will still affect you until it's removed at 7 years.

your average age of accounts is 3 1/2 years old. That's pretty low. I'm willing to bet the charge-offs we're older accounts and therefore you dropped your average age of accounts decent and your average age of revolving accounts decent. You experienced Scorecard reassignment and with the new low aging metrics, that likely accounted for the drop.

The good news is your score will increase with age. May we know the age of your youngest Revolver? Your youngest account? How many total accounts do you have on your report opened and closed? Any loans? Open/closed?

Based on the answers to these questions we may be able to recommend some actions to assist you or advise you of upcoming increases to expect.