Dropped a collection

[Macchamps75]

I got my only collection taken off. I have been e-mailing back and forth with the customer support and they said it would be off in 30 days and they are goign to send out a letter saying so. Is there any idea on how much this will jump my score? I do not have any other negatives. I also need some help getting some INQ's taken off. I am not sure what to do now that i have gotten rid of all of my negatives. I am looking at getting a new car and wonder if i should wait till this falls off next month or not. I have the scores in my sig now. If it will just jump 3 or 4 points i will not bother to wait. thanks.

[Anonymous]

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Macchamps75 wrote:

I got my only collection taken off. I have been e-mailing back and forth with the customer support and they said it would be off in 30 days and they are goign to send out a letter saying so. Is there any idea on how much this will jump my score? I do not have any other negatives. I also need some help getting some INQ's taken off. I am not sure what to do now that i have gotten rid of all of my negatives. I am looking at getting a new car and wonder if i should wait till this falls off next month or not. I have the scores in my sig now. If it will just jump 3 or 4 points i will not bother to wait. thanks.

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If this was your only collection and only negative, I would not app for anything until it falls off, if you can wait.

You may experience rebucketing, which may offset some of the gain. I'd expect more 3 or 4 points, even if you are rebucketed.

How recent was the collection?

What kind of inquiries? Are they yours?

[Macchamps75]

thanks a lot for the reply sidewinder. The collection was on my report for 1 year.  I had a lot of inq's that was from me when i was looking for a car. I had a dealer that ran my credit every month or so. The were mad that i walked out on a deal they were trying to screw me on. They did not just run it once they sent it out to all the banks they use and they all ran it. I called the dealer and asked them what the deal is they said it was a misteak. So i still have them on my report. I asked them to fix it they said they did not know how.

Inq's in the past two years

EX: 8

TU: 7

EQ: 49 ( Yes that is right  a lot are the same places just two months later )

What is rebucketing? i did a search and it seems to me like it is when you drop somethign off your report you gain not having the collection but lose the account length?

Any idea as to what kinda score jump i might see?

Message Edited by Macchamps75 on 06-25-2008 07:11 PM

[Anonymous]

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Macchamps75 wrote:

thanks a lot for the reply sidewinder. The collection was on my report for 1 year.  I had a lot of inq's that was from me when i was looking for a car. I had a dealer that ran my credit every month or so. The were mad that i walked out on a deal they were trying to screw me on. They did not just run it once they sent it out to all the banks they use and they all ran it. I called the dealer and asked them what the deal is they said it was a misteak. So i still have them on my report. I asked them to fix it they said they did not know how.

Inq's in the past two years

EX: 8

TU: 7

EQ: 49 ( Yes that is right  a lot are the same places just two months later )

What is rebucketing? i did a search and it seems to me like it is when you drop somethign off your report you gain not having the collection but lose the account length?

Any idea as to what kinda score jump i might see?

Message Edited by Macchamps75 on 06-25-2008 07:11 PM

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Inquiries only count against your score for 1 year. You may have to contact the banks and explain that the second round was non PP and to please recode the inquiries as soft or remove them.

Your credit score is a risk value. In order for your risk to be assessed, you must be ranked. To do this, we are placed in a "bucket" with others who have similiar credit profiles as we do. Our credit is then compared to theirs and then our risk is ranked(we are assigned a score).

When you have a collection, you may be in a "bucket" with others who have collections. When you no longer have a collection, you could be removed from that "bucket" and placed in another "bucket".

You could be a higher ranking individual in your current "bucket" , but when you are rebucketed, you could be a lower ranking individual in your new "bucket".

There are like 7 or so "buckets" that one could be placed in, and I am not sure that there is anyway to know what "bucket" you are in. There isn't a lot of information out there about "buckets" just a lot of educated guessing.

You may or may not be rebucketed, you may or may not see seem of your increase be offset if you are rebucketed. There is really no way to know for sure.

It is hard to guess score changes, if I had to guess, I'd guess at least 20 points.

[Macchamps75]

The more that i learn about credit and the way the scores work. The more i get confused. I do not understand why they have all of the diffrant ways to judge a score.  So you could have a collection and everythign else be perfect and have a 800 score in that bucket? But when you get the collection taken off you move in to a diffrant bucket and have a 600 score. Because it compairs you to other people in that bucket. Do you have a link or any more info on the buckets so i can read up some more? Thanks again for your input

[Anonymous]

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Macchamps75 wrote:

The more that i learn about credit and the way the scores work. The more i get confused. I do not understand why they have all of the diffrant ways to judge a score.  So you could have a collection and everythign else be perfect and have a 800 score in that bucket? But when you get the collection taken off you move in to a diffrant bucket and have a 600 score. Because it compairs you to other people in that bucket. Do you have a link or any more info on the buckets so i can read up some more? Thanks again for your input

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I have never heard of scores changing that much from rebucketing.

Search on these forums for "rebucketing" or "bucketing". You can try googling it.

I didn't understand bucketing at first, but think of it this way........your score is a rank of your credit risk.

You can not rank something without having other similiar objects to rank them against.

This is why we are placed in "buckets".

I look at this as a good thing. If there were no "buckets" everyone would be compared to one another.

This means someone who is 18 who just started their credit file would be compared against someone who is 60, who has had 42 years of credit.

Or someone who has a collection compared to someone who has all good accounts. Your score would be even lower then.

Someone who has a public record compared to someone who has never even had so much as a late on their report......

[Anonymous]

Also, Mac, it is geussumed that there are "ceilings" for each bucket.. so, for most people with only one collection, they may be only able to get to a certain score and that will be their "ceiling" because the collection will prevent them from moving any higher.

Even if you are rebucketed, you will likely regain points very very quickly. And you may only skyrocket and not experience a point drop at all! It can vary from CR to CR, too, like in my reports:

For my last two med collections being removed from TU and EQ... I LOST two points on TU and went down slightly to a 677. But I GAINED 43 points on EQ and went to a 695. So it is all relative to your individual profile.

[Anonymous]

If it gives you any hope, I just finally got a collection removed that was placed on my report the end of Feb/ first of March........still have 2 more collections and a charge off left on that particular report and my score went from 585 to 626. This was on EQ.

[Macchamps75]

Thanks ivy and sidewinder,

I will do some looking in to the bucket deal. It sounds to me like it might hurt me a bit but will gain more from dropping it. Thanks for your input. It helps me understand it better. I hope it does not drop ne more. I am not sure what else i can do to help my score if i have no lates. Given i only have 5 years of history and all good history. One credit card, One house loan, Equity loan and a car loan. I have them all set up to be taken from the account by there self so i do nto have to worry about my accounts not being on time. I am not sure what else i can do to help my score after this drops off.

[Anonymous]

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Macchamps75 wrote:

. I am not sure what else i can do to help my score after this drops off.

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Try running the score simulator on here and see what happens if you were to add another credit card or two, maybe even a store card.

Some things are better aged, including your credit.

Also, now that Ivy mentions it, I think I read something about the "ceiling" thing before. The collection could have been holding you back, not allowing your score to raise much. It could take off now.