Equifax Score drop

[Anonymous]

In 6/07 my Eq fico score was 690.  I just checked it today and it is now 650.  The only thing that changed during the time was a collection that was placed in 3/08.  The collection is going to come off so I would like to know if my score will go back up to 690 or higher once thhe collection is removed?Thanks.

[Anonymous]

Is your util the same?

I could see a collection causing a significant portion if not all of that drop, especially if the rest of your report is clean. After it comes off your report you should get most of those points back.

[Anonymous]

util is lower now than a year ago.

[Anonymous]

My husband experienced the same problem.  In January his Experian credit score (through WAMU) was 705, in April it had dropped to 668 and in May it was 650!!!  We cannot figure out what is going on and what is causing this big drop?

We are in the stage of rebuilding our credit history.  In January we only had 1 secured credit card with $300 credit limit that we got in August '07 and we only charged $21 on it maybe $42 a month and paid the balance in few days after.  In January my husband got a pre-approved offer from WAMU for an unsecure visa card ($1500).  He applied and got approved for the card.  Since we are trying to build the credit history, he has been charging things to the card but always paying the balance after few days of the charge.  He never carries a balance from month to month.  His monthly total charges are around $500-$700, the payments are the same and we try to pay an extra $20 as a credit.  What is causing the drop on his credit score???

[haulingthescoreup]

If all these scores are through WaMu, they are credit-card enhanced scores, and we don't really know the logic behind those. In addition, some have reported that their scores have switched from TU to EX, so there's another factor going on.

As expensive as they are, it's really worth pulling your straight FICO's from the site here. First Google fico discount code coupon to get a code for at least 15% off the cost.

[Anonymous]

So is my score going to go back up once the collection is deleted?

[Anonymous]

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loloswims wrote:

So is my score going to go back up once the collection is deleted?

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All else equal, yes.

If all else is not equal (like utilization, other accounts, inquiries, etc), then it's impossible to say.

[Anonymous]

So how much do recent collections drop a score.  Mine was put on in March.  My score is currently 650 from equifax with the recent collection.  So I would assume it was higher before the recent collection.

[haulingthescoreup]

I know that a brand-new 30-day late cost me 50 points on EQ two years ago, just like that, and that was back when my score was around 640 (dropped to 590.) So yes, new collections are awful. The exact figure is going to vary according to what score bucket you're in, and what the rest of your reports look like.