Hi all,
I'm super bummed. I had a negative account - charge-off from 2014 that was recently removed from my Transunion credit report, and my score has plummeted 19 points as a result. I still have a "very good" length of credit history rating. What happened? I thought having a charge-off removed was a good thing! 
Having a charge off removed is a very good thing. But removals don't always translate into score increases, unfortunately, for a variety of reasons.
For example, if removal dropped your average age of accounts below a scoring threshold, you'd be penalized for that. The points lost for age versus points gained for removal may have left you with a difference of -19 points. Or, if this was your only derogatory, then point loss could occur due to scorecard reassignment - going from dirty to clean where credit factors like new accounts or utilization are measured and weighed differently.
We'd need a detailed summary of your credit profile to determine exactly why you experienced a decrease - but those are just two examples of how and why decreases occur after derogatory account removals.
Try not to worry about the point loss - a clean report is better than higher scores any day. Continue to focus on acquiring a prestine credit report history and the score gains will follow in time.
I experienced a 21-26pt drop across all 3 bureaus when my final derogatory was removed - those points were regained after several new accounts aged and my scores now rise higher than before since I no longer have negative items keeping them suppressed.
Congrats on the removal and welcome to the forums!!
@Anonymous wrote:Thank you so much, @thornback! I was excited and then my heart fell after seeing the score drop. But, you're right- I want to have a clean report. Thanks again for sharing your wisdom!
You're welcome! and believe me, I know how disheartening it can be. Rebuilding is usually an emotional rollercoaster. Eyes on the prize though- it will all be worth it in the end.