@Anonymous wrote:
So today I received an update on my Credit Karma profile, since the last update 7 charge off's were deleted off my credit report yet my score drop 2 points! How does this happen?! I was really looking forward to an increase :/.
Removal of derogs can lead to score decreases in certain situations, depending on the specifics. A reduction in AAoA is one typical reason. However, you're still generally better off without the derogs than with. Don't just obsess over numbers. Focus on your report data.
Also consider the specific scoring model, do not assume all models to be equivalent and consider the relevance of the model. The VantageScores provided by CK are only relevant to creditors that actually use them. The same consideration must be made for any of the FICO models. If, for example, a creditor/prodcut uses an EQ FICO 8 Bankcard then an EX FICO 8 will not be relevant since the model and CRA differ.
If you are going to worry over the numbers then set a higher threshold. 2 is way too low. I recommend at least 20 points. Your scores will vary just from normal activity.
@myscore1 wrote:
My guess is that the charge offs were old enough to the point they were not really affecting your score at all. Getting rid off them may have change the "aging" or your accounts some. My take would be that charge offs look bad during manual reviews but at some point they really do not affect the score anymore (another good reason not to obsess about eliminating them either!!).
Be aware that scoring and a creditor's requirements are two entirely different things. A creditor can certianly have concerns with report items even if they do not have a scoring impact. It is not just about score.
@myscore1 wrote:
I just had a drop of 21 points in EXP and I have no idea why. Going a bit insane myself here.
You have to carefully review report data from before and after the scoring change to determine the cause(s). If you're using myFICO monitoring you cannot rely solely on the alerts/updates.
@Anonymous wrote:
7 negative account deletions will give you a score boost on Fico.
You cannot simply assume this. It all depends on one's credit profile and the specifics of the change.
@Anonymous wrote:
I would strongly recommend getting a true Fico score - especially while you are cleaning up your reports. CK is great for understanding what is in your report (except closed accounts that report to fico) but the Vantage Score used by CK is not commonly utilized for credit applications.
One cannot rely on oversimplifactions such as "true". A "true" FICO is not relevant if it is not the specific model used by a creditor/product. There are many "true" FICO models (see also the Understanding FICO Scoring subforum and its stickies) and there are creditors that use Vantagescores. One needs to consider relevance regardless of the scoring model.
Do not assume that any one model is "true", "real", "accurate", "reliable", etc. FICO 8 is the most commonly used model but it is not used by all creditors/products.
