Two of Four Collections Account Deleted Score Dropped 15 points instantly!

[NicDani45]

I disputed four collections account. Two of the four were deleted. The other two are still in process. My score dropped 15 points as soon as the two collection accounts dropped off on Experian. Note: usage is under 30% still, my age of oldest account has not changed. I pay for an account with Experian that will tell you what has changed that will impact your score. By all accounts from Experian directly my score should have gone up, but it decreased by 15 points. Changes sited by Experian "number of collections accounts decreased from four to two...could help". "Total balances on all accounts decreased...should help". "Number of accounts delinquent 30 days decreased by two...should help". "Age of two credit factors has increased...should help". So how is it everything changed for the positive after the deletion of the two collection accounts only to see a 15 point drop. My score was not great to begin with. Feeling like I can never win at this credit game.

[GreatLife]

Is it possible your profile moved to a different scorecard? Forum gurus will likely have some helpful reasons for the score drop.

[FlaDude]

I can't answer why your score dropped, but removing some charge offs is not going to make a big improvement unless they were recent and the others much older. Going from 1 to zero is where you'll see the big gain.

[Realist]

What were the amounts involved?  Was the deleted or wiped away amounts of a significant value?  Credit scores will move noticeably when an event occurs that is different than past actions, often resulting in a decline more often than a rise.  If there wasn't much of a change, then adjustment will still take place over time, just not as significant.

I can give you a real world example.  For instance, if you hold 30k-40k in debt, and are delinquent on all accounts, this will crater your FICO score.  However, if you settle in full, you pay a fraction of the debt to settle in full.  This negative but settled in full, is counterbalanced with a FICO score that usually rises, because the weight of the debt is eliminated, even though you were once severely behind in payment for many months or years.  One negates the other due to both being severe in FICO calculation.

I know people like to watch their scores.  I know for some people 15 points in change is a huge deal, especially when you believe you are doing the right thing.  I get that, I understand that, but the system is still adjusting it's algorithm to the new event and updated data.  Keep paying your bills on time.  Keep doing everything right, and eventually you should find your score only elevating.  At some point in time, you may grow to find your FICO score pretty irrelevant.

[NicDani45]

I guess it's possible. The only thing I can think of at this time would be a rebucketing. Thanks!

[indiolatino61]

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@NicDani45 wrote:

I disputed four collections account. Two of the four were deleted. The other two are still in process. My score dropped 15 points as soon as the two collection accounts dropped off on Experian. Note: usage is under 30% still, my age of oldest account has not changed. I pay for an account with Experian that will tell you what has changed that will impact your score. By all accounts from Experian directly my score should have gone up, but it decreased by 15 points. Changes sited by Experian "number of collections accounts decreased from four to two...could help". "Total balances on all accounts decreased...should help". "Number of accounts delinquent 30 days decreased by two...should help". "Age of two credit factors has increased...should help". So how is it everything changed for the positive after the deletion of the two collection accounts only to see a 15 point drop. My score was not great to begin with. Feeling like I can never win at this credit game.

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Very frustrating indeed. This happened to my wife recently, where she requested early exclusion (EE) on her last 2 negatives and was approved. She was livid when her EX score dropped 17 points instantly. She decided not to do the EE on TU and EQ as a result. Good luck to us all.