@jino_nyc wrote:
Just checked my credit report (all 3 bureaus) and I noticed that my FICO went down 60 points strictly because I reported my BOA credit card lost and a new replacement was issued. When I spoke to the rep at Bank of America, they said they clsoed the old account and opened a new one. No lates, inquiries, or other derogatories were reported. How can I resolve this issue? I was just about to apply for a car loan, and this really messed me up. Any advice will be highly appreciated.
Yes, this can happen with BoA. When they reissue a card (for lost/stolen) they report the old account number as closed and commented as LOST/STOLEN. Then they report a new account number with the old history.
The problem comes in if this is an account with an age (open date) which lowers your AAoA. Let's say your BoA account is 1 year old and your AAoA is 3 years old.
When they begin reporting both the lost card and the new card, FICO begins to calculate AAoA as though you have 2 accounts that are 1 year old. This can make your credit appear/calcualte as newer than it actually is, having multiple new accounts, lower your AAoA.
Then combine this aging issue with any balances you carry. Possibly when your AAoA and number of newer accounts is affect, that any current balances now become more adverse to your scoring. It's like dominos. One thing changing can all of the sudden make previously "neutral" factors become negative, which then all cumlatively push FICO down. This can also cause any old baddies to become more adverse to your scoring. Bascially anything that can "potentially" be negative has more weight when your AAoA is affected or number of newer accounts.
You can attempt to dispute the LOST/STOLEN TL as "duplicate" account. Sometimes this will result in that TL being deleted. If this happens, it usually will reverse the adverse drops if all other things remain equal.
Message Edited by txjohn on 07-11-2009 07:44 AM
