TU dropped 6 points when charge off was deleted.

[IrishPM]

Here's a weird thing that happened today.

I had a charge off deleted from my TU credit report and my score dropped 6 points.

My utilization is 0%. I have 3 credit cards open with $0 balance.

I have one auto loan open with a balance of $10,200 and no lates whatsoever. The auto loan has been reporting since October.

None of the other accounts are reporting any differently than they did the previous months.

Why would my score 'drop' 6 points for a charge off deletion???

[llecs]

How old was the CO in relation to your AAoA?

[Anonymous]

---

@llecs wrote:
How old was the CO in relation to your AAoA?

---

Could it be a combination of AAoA and different bucket?

[Junejer]

Hi Irish, welcome to the world of a new bucket.

[Anonymous]

---

@Junejer wrote:
Hi Irish, welcome to the world of a new bucket.

---

I thought that might have been it, thanks for the confirm.

[Junejer]

Yep, you were right on there Guardian. Perhaps they also did experience a drop in AAoA as well.

[IrishPM]

Please educate me on what a different 'bucket' is.

The trade line was 'charged off' in March 2004. Trade line or charge off was paid in full (by me) April 2004.

This trade line was a Providian card and through my stubborness I refused to pay them beginning December 2003 because they rate jacked my account from 14.5% to 32.5% for no reason. I was not overextended and was never late paying the bill every month.

I called Providian and they repeatedly refused me explanation as to why they were rate jacking me so in my impetuous Irish temper I refused to pay them the usury interest rates and they 'charged off' the account.

It has remained on my credit report as a 'charge off' since March 2004 and reported in May 2004 as '$0 balance/paid collection'.  

The item has been 'deleted' from my credit file.

[Junejer]

When a major derogatory item is deleted from your CRs, and there are no other baddies listed, you are then put into a different "bucket"--which means that you are now compared to a different class of FICO scores, based off of what your report looks like (Credit history length, AAoA, etc.). The good news about a rebucket is that your scores can go higher than they could've with the major derog on there. This is good news, even though it doesn't look like it right now. In a couple of months, if all things remain equal, you will agree.

HTH

[Anonymous]

---

@Junejer wrote:
Yep, you were right on there Guardian. Perhaps they also did experience a drop in AAoA as well.

---

Thanks, I guess the sun does shine on a dog's a$$ sometimes

[Anonymous]

---

@Junejer wrote:
When a major derogatory item is deleted from your CRs, and there are no other baddies listed, you are then put into a different "bucket"--which means that you are now compared to a different class of FICO scores, based off of what your report looks like (Credit history length, AAoA, etc.). The good news about a rebucket is that your scores can go higher than they could've with the major derog on there. This is good news, even though it doesn't look like it right now. In a couple of months, if all things remain equal, you will agree.

HTH

---

I have been rebucketed twice, once after the BK fell off and the other when some of the other derogs that were reported incorrectly were removed and it hurt me both times and too consequetively before I could recover from it. What bugs me is that now I have a couple that are wrong too and I can't get them off and been fighting (mostly experian) and they won't budge and I know all the gains are going to go down again once they come off and I am so sick of it.

So, I know first hand the frustration of the rebucket and the promise of a better future but I guess its life and we are slaves to the system that governs it. Just be patient and work hard to maintain your report and it will be fine ultimately.

Message Edited by Guardian on 01-19-2009 03:53 PM