topic Re: Collection Removal Dropped my Score in Rebuilding Your Credit

Collection Removal Dropped my Score

Butterfly01 — Tue, 31 Dec 2024 13:00:04 GMT

I paid off two collection accounts and I looked at my Experian report today and they finally fell off, taking away two 30+ day late payments, and dropping my score by 29 points! I'm so shocked and I thought I would have a huge score boost once they came off. Any advice or insight into why this happened would be appreciated. Thank you.

Re: Collection Removal Dropped my Score

MissLiz — Tue, 31 Dec 2024 13:39:03 GMT

Depending on what the rest of your profile looks like, two things probably happened.
1. Your AAoA likely dropped.

2. You were rebucketed.

Don't fret. You'll get those points back. It's better to have those collections removed. It may not feel like it at the moment, but you are moving in the right direction.

Re: Collection Removal Dropped my Score

Butterfly01 — Tue, 31 Dec 2024 15:07:58 GMT

Thank you for your reply. Would you mind explaining what rebucketed means?

Re: Collection Removal Dropped my Score

GZG — Thu, 02 Jan 2025 21:59:08 GMT

@Butterfly01 wrote:
Thank you for your reply. Would you mind explaining what rebucketed means?

when FICO generates your score, they check which "scorecard" you belong to

if you're moving from a "dirty" scorecard where you have lates and collections, to a "clean" scorecard where you don't have lates or collections, you can lose points because you need a "better" credit report in a clean scorecard to get more points

Re: Collection Removal Dropped my Score

FreddyFingers — Sun, 05 Jan 2025 18:12:31 GMT

I had this happen as well.

Re: Collection Removal Dropped my Score

sjt — Tue, 07 Jan 2025 20:59:08 GMT

@Butterfly01 wrote:
I paid off two collection accounts and I looked at my Experian report today and they finally fell off, taking away two 30+ day late payments, and dropping my score by 29 points! I'm so shocked and I thought I would have a huge score boost once they came off. Any advice or insight into why this happened would be appreciated. Thank you.

That was a big hit on score when those collection items fell off your report. What was your score before and after the collections fell off your report? Also, have you combed through your report to see if there were any other changes, like maybe a positive old closed account feel off your report, etc.