OMG ~ Very Disappointed . . . Credit Score Dropped by 9 Points

[babygirl1256]

Well, seems like I danced absolutely too fast . . . TU deleted the last adverse account on my credit report. My score was 790 and today I received my new score from TU and it dropped to 781. I was really upset; so of course I called and the representative explained that my score dropped due to the following:

• 1 hard pull inquiry (Navy Federal Credit Union 4/2021)
• Deletion of my oldest trade line account/13.5 years (Bank of America/BoA)

Ok, I was super ecstatic that TU deleted the BoA adverse account but if I would have known it would cause my score to drop then I would have left it on there. Hopefully my score will increase once NFCU starts to report my account with my largest credit limit of $23,100. I probably should have asked our Community before requesting TU to delete the adverse trade line . . . live and learn!

[AllZero]

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@babygirl1256 wrote:

Well, seems like I danced absolutely too fast . . . TU deleted the last adverse account on my credit report. My score was 790 and today I received my new score from TU and it dropped to 781. I was really upset; so of course I called and the representative explained that my score dropped due to the following:

• 1 hard pull inquiry (Navy Federal Credit Union 4/2021)
• Deletion of my oldest trade line account/13.5 years (Bank of America/BoA)

Ok, I was super ecstatic that TU deleted the BoA adverse account but if I would have known it would cause my score to drop then I would have left it on there. Hopefully my score will increase once NFCU starts to report my account with my largest credit limit of $23,100. I probably should have asked our Community before requesting TU to delete the adverse trade line . . . live and learn!

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Was that a delinquent and/or charged off account?

The goal should be to be on a clean scorecard. If you have accomplished it, congratulations. Any major delinquency or derogatory may have suppressed your scores from breaking the 800 barrier. Your TU score will recover with time.

[babygirl1256]

@AllZero Yes, BoA was a $429.00 charged-off account from 1/2016 . . . I paid it in full 6/2019 when it was included on my credit report. I do have a clean scorecard now with TU and will certainly look forward to my TU score recovering with time. The BoA is the only adverse trade line on my EQ and EX reports so perhaps I should leave it alone since BoA is my oldest reporting account (although negative). Thanks so much for the information.

[AllZero]

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@babygirl1256 wrote:

@AllZero Yes, BoA was a $429.00 charged-off account from 1/2016 . . . I paid it in full 6/2019 when it was included on my credit report. I do have a clean scorecard now with TU and will certainly look forward to my TU score recovering with time. The BoA is the only adverse trade line on my EQ and EX reports so perhaps I should leave it alone since BoA is my oldest reporting account (although negative). Thanks so much for the information.

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Excluding the BoA account, what is your next oldest open or closed revolving/installment loan account?

Personally, I'd rather be on a clean scorecard. It helps with scores and credit seeking behavior.

Since TU is clean, you may or may not receive a new account penalty once NFCU reports. It all depends if you have had any other new account opened less than 12 months ago.

I would recommend reading the below from Birdman7
General Scoring Primer and Version 8 Master Thread, pub.5.17.20

[babygirl1256]

Excluding BOA:

Open Trade Lines/Name	Acct Age
Chase Slate Visa 3/2011	10 years/2 months
Macy's 3/2011	10 years/2 months
TDECU/Mortgage 11/2011	9 years/5 months
USAA “Secured” American Express 9/2017	3 years/8 months
GM Financial/Vehicle Loan 9/2017	3 years/8 months
Discover 1/2019	2 years/4 months
American Express Blue Cash Pref'd 3/2021 (New)	2 months
NFCU Mastercard 4/2021 (New)	1 month

I just confirmed that these 2 closed trade lines are listed on my TU credit report.

Closed Trade Lines/Name	Acct Age
Chase Auto Loan - Open 10/2008 Close 10/2013	12 years/7 months
Credit Union Loan - Open 10/2008 Close 7/2011	12 years/7 months

Oh no to receiving a new account penalty once NFCU reports. I have one other new account opened less than 12 months ago and that's my AmEx and I am intentionally keeping both new account balances less than 5%. I will certainly read Birdman7's post! Thanks again!!!

[AllZero]

I would say your profile is in very good shape. I wouldn't worry about the BoA account. You have the closed installment loans propping up the age until it drops off. Then, the open aged revolvers to take it's place.

Since the Amex is a newish account, IIRC, then you should not be penalized for the NFCU account.

[Anonymous]

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@babygirl1256 wrote:

Well, seems like I danced absolutely too fast . . . TU deleted the last adverse account on my credit report. My score was 790 and today I received my new score from TU and it dropped to 781. I was really upset; so of course I called and the representative explained that my score dropped due to the following:

• 1 hard pull inquiry (Navy Federal Credit Union 4/2021)
• Deletion of my oldest trade line account/13.5 years (Bank of America/BoA)

Ok, I was super ecstatic that TU deleted the BoA adverse account but if I would have known it would cause my score to drop then I would have left it on there. Hopefully my score will increase once NFCU starts to report my account with my largest credit limit of $23,100. I probably should have asked our Community before requesting TU to delete the adverse trade line . . . live and learn!

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A clean scorecard with no derogs and a lower score will have a better chance at credit approval than a dirty scorecard with a higher score.

Every credit profile is different, but I can tell you I have scores mid 600s to low 700s that each have 3 x CAs and cannot get very good approvals vs my SO with mid 600s scores and no CAs and gets approved for most everything he apps for.

I have seen scores in the 600s get approvals with no derogs over those with 700s scores with severe derogs.

Score is not everything, content of those reports and other factors outside of the CRs (DTI/income/relationship/etc) are what will lead to approvals.

If anything, a clean report with scores in the high 700s is going to do you more good than high 700s and being dirty.

[Anonymous]

Agreed with the above. OP, you're looking at this the wrong way. You lost 9 points, very minor with a score still above 780. Once you broke 760, conventional wisdom holds that you'd get the same terms as someone at 850. Difference is, you might not get approved in the first place with the derog and a 790 (some are really picky), but at 781 and clean, the sky's the limit. 

Losing those points is like losing 12 cents in the couch cushions with your score. Clearing that derog is like finding a $1000 winning scratch off ticket to replace it. Most definitely do NOT leave two bureaus dirty to conserve a small handful of points that are disposable from where you sit. They, and more, will be back.

Congrats on going clean on TU - looking forward to seeing the other two clear out as well.

[bluedog357]

I wouldnt worry about it. We are working on our credit and we just got 2 charges offs paid, since they were paid Equifax dropped by 8 points because of it and then jumped up 5 the next day So only a loss of 3, however it prevents Robins Federal from reporting a charge off everymonth, so in the end it helps. 

[AverageJoesCredit]

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@babygirl1256 wrote:

Well, seems like I danced absolutely too fast . . . TU deleted the last adverse account on my credit report. My score was 790 and today I received my new score from TU and it dropped to 781. I was really upset; so of course I called and the representative explained that my score dropped due to the following:

• 1 hard pull inquiry (Navy Federal Credit Union 4/2021)
• Deletion of my oldest trade line account/13.5 years (Bank of America/BoA)

Ok, I was super ecstatic that TU deleted the BoA adverse account but if I would have known it would cause my score to drop then I would have left it on there. Hopefully my score will increase once NFCU starts to report my account with my largest credit limit of $23,100. I probably should have asked our Community before requesting TU to delete the adverse trade line . . . live and learn!

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So sorry for your loss