This afternoon I received and email from Experian, who I have the basic subscription with. It stated a 42 point drop in my score 😳. As I’ve recently opened several cards and utilization has been dropping over and over I was surprised by this. It listed a “new” negative that has been on my report since 2014 and has been on every report since then. I’ve had no alerts from MyFICO, CK or any of the other reporting agencies. I’m just wondering how accurate the free Experian app is and if it should be cause for alarm? Thanks for any insights anyone can offer!
The free Experian app and account should be directly from EX, so it's a true FICO score. If you opened several cards, you're getting hit with HPs + new accounts + lowered AAoA. They might have gave you the report of the "new" negative just to make sure you know about it. I've had odd reporting before of it alerting me of things that happened a month+ ago, or double alerting me.... It alerted me of my new discover card TWICE like someone had opened another discover account in my name... :/ That was a scary ride, monitored it a couple months to make sure I only had one Discover account.
Anyway, it's accurate, as it's directly from EX. Shouldn't be too much cause of alarm, just review all the info to ensure it's correct. Your HPs and "new account" score hits should resolve after the first year. As long as all the accounts, derogs, etc. are actually you, I wouldn't worry. Just garden your new accounts and see about being responsible.
I think you'll be alright. Just keep ontop of it and everything will be fine. Your new accounts will report generally on their first statement close (unless it's US Bank, they report on the last business day of the month). HPs always show pretty much immediately. If the balance of the charge off updated, that makes sense why it would have come up as a new alert, something changed on it.
Just an update, received an alert from myFICO today and my TU also dropped from the same CO. Went from 680 to 646 on TU and 667 to 624 on EX. Was getting so close to the 700 club. Just keeping my fingers crossed Chase won’t close my new CSP card 🤞. Debating if I should just reach out and try to settle. It’s from a Merrick bank card.
Settling it is bad.
Paying it off is good.
When a creditor updates their reporting on a delinquent account, they report the current status as one of continued and current delinquency, such as 180+ late, or CO.
That reporting informs that the period since initial delinquency has extended. Increased period of delinquency has negative effect on scoring, either for a delinquent account with a creditor, or for a collection.
The updated reporting, which a creditor can make at any time, has its own negative scoring impact.
If the current delinquency status, for example, is reported as CO, then the date of first delinquency has already been reported, and the total period since initial delinquency then becomes the period from DOFD to the date of the updated reporting.