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Early Exclusion caused score drop -- can someone explain or point me to resource?

thebunnyhop
New Contributor

Early Exclusion caused score drop -- can someone explain or point me to resource?

Hi everyone!

 

I decided to request an early exclusion of a bankruptcy from one of my reports and it was granted. Another request is still being considered and the third was denied (too soon). 

 

The request, though, caused a drop in my credit score. Now, mind you -- it wasn't too bad of a drop (only 18 points) and it's clear that this would have happened anyway once the BK dropped off, but I'd like to understand why and what my next moves should be. 

 

I'll share the necessary data from the report -- which is TU. 

My Fico Score 8 from TU was 715 and now it's dropped to 697. 

 

One baddie. All other accounts in good standing. My UTL is 1%. I've been using AZEO. 

I've had 6 INQs, I've got 37 accounts, AAOA is 6 yrs 11mos and I've got a 100% recent payment history.

I do have some older student loans with VERY OLD negative payment history, which is falling off quickly and which will soon show no negative history. But I do not think these have been affecting my scores greatly -- or, at least, they don't factor into the negative drop after BK deletion -- as these have been here awhile, they were already accounted for and a bit of the negative history falls off each month. 

So, that's the situation. 

Can someone explain? Can someone point me to a resource/article/posting? Also, how long will the score decrease remain -- will there be a rebound, beyond it naturally increasing a bit each month as it has been? Is there anything I can do to help the score rebound faster or better? 

To be clear, I understand that having a bankruptcy fall off my record is a positive, regardless of the impact on my score. I'm pleased -- and thankful to TU for the EE. I just want to understand a bit better and prepare for things I should do now. 

Thank you!


Starting Score (Nov 2017): FICO 8 : TU - 510; EQ - 635; EX - 575
Recent Scores (Mar 2019): FICO 8 : TU - 776; EQ - 770; EX - 758
Current Scores (Feb 2020): FICO 8 : TU - 764; EQ - 790; EX - 776
Intermediate Rebuilding Phase Goal Score (Sep 2019) : FICO 8 - 760 across the board

Final Rebuilding Phase Goal Score (Sep 2020) :FICO 8 - 800 across the board

Take the myFICO Fitness Challenge

Other Stats: AAoA 9 Yrs | Inquiries (24 Mos): TU = 3 ; EQ = 3 EX = 6 | UTL = 10%
My Lineup: NFCU Go Rewards $22000 | Discover IT Cashback $2900 | Amex BCE $1000 | Target Redcard (Store Charge) $2000
3 REPLIES 3
pizza1
Community Leader
Super Contributor

Re: Early Exclusion caused score drop -- can someone explain or point me to resource?

For starters, once your TU report dropped the BK, you were then re-bucketed again, and compared to folks with your similar type of report.  You say you have one baddie....what is it? You also say you have old lates?? Those two things right there are enough to keep you lower in scores.  Also, depends on what your rebuild was like post BK, and if you have any loans reporting as well.  


My rebuild worked for me, but won't necessarily work for you!
BK7 D/C- 08/2013
Message 2 of 4
thebunnyhop
New Contributor

Re: Early Exclusion caused score drop -- can someone explain or point me to resource?


@pizza1 wrote:

For starters, once your TU report dropped the BK, you were then re-bucketed again, and compared to folks with your similar type of report.  You say you have one baddie....what is it? You also say you have old lates?? Those two things right there are enough to keep you lower in scores.  Also, depends on what your rebuild was like post BK, and if you have any loans reporting as well.  


Yeah, I keep reading about this bucketing thing -- and I didn't even know that was a concept that applied to credit scoring. I thought the scores were based on factors that only had to do with my credit report, not any factors derived from comparing to other people with similar types of reports. So, this is new to me. 

 

Based on what you're describing and what's remaining as negatives on my credit report, it sounds to me like the only thing I can do is maintain positive activity on my accounts. And wait. Unfortunately, I didn't get started on rebuilding until a year and a half ago or so -- certainly not right after the BK. I didn't think to start applying and rebuilding credit so soon after a bankruptcy -- the popular idea floating around out there is that you shouldn't do that, it's counter-intuitive. 

 

I don't have any loans, other than the student loans I maintain -- which are in good standing. And my three credit cards - which are also in good standing. Would it help to get another type of loan? 

 

Thanks!


Starting Score (Nov 2017): FICO 8 : TU - 510; EQ - 635; EX - 575
Recent Scores (Mar 2019): FICO 8 : TU - 776; EQ - 770; EX - 758
Current Scores (Feb 2020): FICO 8 : TU - 764; EQ - 790; EX - 776
Intermediate Rebuilding Phase Goal Score (Sep 2019) : FICO 8 - 760 across the board

Final Rebuilding Phase Goal Score (Sep 2020) :FICO 8 - 800 across the board

Take the myFICO Fitness Challenge

Other Stats: AAoA 9 Yrs | Inquiries (24 Mos): TU = 3 ; EQ = 3 EX = 6 | UTL = 10%
My Lineup: NFCU Go Rewards $22000 | Discover IT Cashback $2900 | Amex BCE $1000 | Target Redcard (Store Charge) $2000
Message 3 of 4
calyx
Super Contributor

Re: Early Exclusion caused score drop -- can someone explain or point me to resource?

If you are still paying on student loans, then no, there's no reason to get another loan.   For scoring purposes - student loans, shared loans, mortgages, etc. are all "installment" loans and you only need one.

RIP:

F8 EQ: 809 | EX: 802 | TU: 805 | Accounts: 0/6 3/12 5/24
Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
Message 4 of 4
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