16 point drop after collection taken off????

[Anonymous]

On 3/8/13 I had a alert on my report. Sallie Mae had been added to my account and that I was in a good standing and it raised my score 19 points. Today, a collection that I fought and they agreed to take off, was taken off my trans union and experian reports. My score dropped 16 points. This is the only change since the increase. How is this possible? I thought getting a collection taken off would raise it even more

[guiness56]

Was this your last major derogatory on your CR?

[Anonymous]

No it's a more recent one. My last derogatory is two missed payments I'm trying to get taken off

[guiness56]

You have more than likely been rebucketed.  You no longer have any major derogatories on your account.  30 and 60 day lates are minor.

It means you have been placed into a population of consumers with similar scores.  Sort of like going from the wading pool to the deep end.  You are now in a catergory where typically people will have higher scores than you.  The good thing is your score will get on par with the rest of them quicker than they did being in the wading pool.

[Anonymous]

Sorry I'm new to this but I'm confused. What do you mean? I've been making all payments on time and getting my debt down. I forgot I do have one more derogatory account that I'm working on. But my score was at 596 and went down to 580.

[guiness56]

Rebucketing is moving you from a score group of like scores and derogatories to the next group with higher scores and no or minor derogatories.  Being moved to the next group will drop your score but the recovery is faster. 

Since you still have a major derogatory, rebucketing isn't likely.

What is the last derogatory?

The collection removal should have improved your score.  Was it a CA?

[Anonymous]

There are two collections but both with the same agency. Then there is a late payment with ford credit and a late payment with a cc. Other than that that is it.

[guiness56]

The 2 collections would keep you from being rebucketed.  Now I am unsure of why the scored dropped.

What about utilization?

[Anonymous]

Sorry again but what do you mean about utilization?

[guiness56]

Do you have credit cards?  What are the balances on the credit cards versus their credit limit?