@teddy67 wrote:My bankruptcy was in 2001. Last year each of the creditors began dropping off of my report, and each time one did, my FICO score dropped and kept getting lower each time another one of my creditors dropped off. I was shocked and devestated because of this. I have 2 credit cards that I have been using for the last 4 years and have always paid the entire balance every month, never once was I late. Watching my score go up every couple of months and then drop drastically again the next month finally made me call MyFico. I was told that each time one of the creditors from my bankruptcy had dropped off of my credit report, it caused a big decrease in my fico score, and that it would continue to do so until all of the creditors dropped off my report. She was entirely correct, because when they all finally dropped off of my credit report, my fico score went up a whopping 100 points and is presently 744. I still have a couple of years to go, before my credit report is totally clear of any mention of a bankruptcy.
Would one of our experts
on this forum (i.e. fused) please try to explain to me why the FICO DEcreases if negative accounts fall off the report while you have a BK on file? So somebody who has 30 charge-offs on file after his CH7 has a higher score than somebody with only one? It doesn't make sense to me...
I do understand that your score increases dramatically once all derogatory accounts fall off - but the prior dropp is totally weird. I always thought once you have a BK on file, your score is calculated in comparison to others who have a BK as well. Now why is somebody with a higher number of derog. accounts on file "more credit-worthy"??
Thanks in advance!
ScoreBooster wrote:Would one of our experts
I'm no expert, but removing an old CO can drop your scores. I've have paid and unpaid COs fall off resulting in a lower score. Why?
Because when those old TLs fall off, you are losing badly needed history. When you lose that history, your AAoA drops and sometimes that weighted more, score-wise, than the baddie itself. Now CAs need to come off, but when asking old OC COs to disappear, via a GW or whatever, you always need to consider the AAoA. If the account is older than your AAoA, then don't touch it. However, it's OK to take the risk from time to time to ask them to remove a remark, late, etc. If the CO is younger than your AAoA, then GW them to ask for removal; it will only help your score.
Another factor to be considered is the length of positive history in that TL (if reporting monthly) in relation to the bad. If removing an old CO, you may be removing more good than bad.
@llecs wrote:
@ScoreBooster wrote:Would one of our experts
I'm no expert, but removing an old CO can drop your scores. I've have paid and unpaid COs fall off resulting in a lower score. Why?
Because when those old TLs fall off, you are losing badly needed history. When you lose that history, your AAoA drops and sometimes that weighted more, score-wise, than the baddie itself. Now CAs need to come off, but when asking old OC COs to disappear, via a GW or whatever, you always need to consider the AAoA. If the account is older than your AAoA, then don't touch it. However, it's OK to take the risk from time to time to ask them to remove a remark, late, etc. If the CO is younger than your AAoA, then GW them to ask for removal; it will only help your score.
Another factor to be considered is the length of positive history in that TL (if reporting monthly) in relation to the bad. If removing an old CO, you may be removing more good than bad.
Thanks (Kudos!) for that reply - that makes sense.
I was just confused if this rule applies in general. So I guess if accounts dropp off that were relatively young (i.e. 6 months) charge-offs, your score goes up - anf if you included an old account in your BK before it was even reporting 30 days late, your score goes down when they fall off. I agree, it makes sense.
I was just thinking of my situation with my bunch of "young" charge-off accounts. I just couldn't think of any reason why my score should go down once they are gone...
I didn't get a chance to read all the way through this thread, but saw there was some contention as to whether your score would go up or down when a BK gets gone. I'm sure it's not the same for everyone, but here's my results. BK7 was already off EQ and EX when I pulled on 2/4, but TU still showed it. Today, it's gone!! Yay me!!!!!
TU 2/4/09 658
TU 2/11/09 677
I've already been through line by line, no public records is the ONLY difference! Now, gotta work on those baddies!!