Bucket or bucketing

[Anonymous]

I did a search for this and didn't find much. Does anyone have any info about buckets? is this a real factor is FICO scoring? How do you know which "Bucket" your in and how it effects you?  

[llecs]

I just lost 17 points due to rebucketing. And I'm OK with that. It is a very real component to scoring. My last 90 day (no lates are impacting my score now) was removed from EQ and that dropped my score.

Buckets are different score "classes" you are lumped into. You are compared to those who also have lates, collections, PRs, etc. In short your score is compared to everyone else's based on what is on and what isn't on your report.

I like to use the example of college. Some professors grade on a scale. If that's the case, then if you get the highest score at 85%, then grading on a scale, you really got an "A". Same goes with FICO scores based on what's on your report.

[Anonymous]

Yes, bucketing is a reality.

Remember school and the "Curve" Grading system?  Well, bucketing is much the same.  It compares you to your peers....and peers only means those you are similarly compared to.

FICO uses comparative analysis.  It uses the law of large numbers.  Simply put, they take segments of borrowers based upon identifiable credit characteristics and then analyzes under what circumstances do relative outcomes occur.

So, when you are bucketed to one particular segment, your grade (FICO) is the curve grade of that bucket (class).  When you graduate to another bucket (class) you are graded against your new bucket peers, which means that even though you improve your overall credit situation, you score lower because you compare lower to your new bucket.

[Anonymous]

Look on the Understanding FICO Scoring thread. There is many, many, posts about this.

Try searching "score buckets"  "FICO buckets" etc. All different variations.