Score dropped after last collection removed

Anonymous · ‎02-09-2017

Help! I had my last 2 collections removed from my Experian account, and when they dropped off today my score dropped 17 points. I do still have a loan that has a few lates on it and a student loan that is showing closed with a balance. Is this rebucketing?? My utilization is 4% with $7750 available credit across a number of credit cards and store cards.

Thanks!!

Anonymous · ‎02-09-2017

If a collection was one of the oldest accounts, I've seen the score drop when the account is deleted. If the file is thin, the drop can be dramatic.

Anonymous · ‎02-09-2017

THanks!! one of them was 6 years old so that may have been the cause for the drop in score. I was hopeful that it was a change in bucket. I had been stuck at 649 for a couple months on Experian. Although a drop in score wasn't ideal, I was hoping that it was for something good

Anonymous · ‎02-09-2017

@Anonymous wrote:
Help! I had my last 2 collections removed from my Experian account, and when they dropped off today my score dropped 17 points. I do still have a loan that has a few lates on it and a student loan that is showing closed with a balance. Is this rebucketing?? My utilization is 4% with $7750 available credit across a number of credit cards and store cards.

Thanks!!

Are the lates 30, 60, or 90 day lates? Also, how recent was the late payment activity. 30 and 60 day lates lose their impact on your score after 24 months, but 90 day lates stay on your report the whole 7 years. If the collections were your oldes accounts, then having them removed, affected your AAoA.

Anonymous · ‎02-09-2017

the lates were 30 days.... a couple 60 days. all over a year ago but less than 24 months... except one 30 day late that NMAC refuses to take off , even though I had deferred that payment. Must've been an AAoA hit. I'm ok with taking that hit to get the Collection off my account.

Anonymous · ‎02-09-2017

@Anonymous wrote:
the lates were 30 days.... a couple 60 days. all over a year ago but less than 24 months... except one 30 day late that NMAC refuses to take off , even though I had deferred that payment. Must've been an AAoA hit. I'm ok with taking that hit to get the Collection off my account.

You're making wonderful progress. Been there, done that...still at it. I know from personally experience how disappointing it is to take care of baddies, get them removed, and then you're score drops, but the ups and downs are worth it in the long run if you have a strong credit profile.

gdale6 · ‎02-09-2017

AAoA is only affected by OC accounts, CAs and PRs are not included in it. You may have been re bucketed into a group that has no PRs and CAs on file but does have late derogs

Anonymous · ‎02-09-2017

Thank you!! I hope that's what it is. Now I guess I just wait for the lates to age.

gdale6 · ‎02-09-2017

@Anonymous wrote:
Thank you!! I hope that's what it is. Now I guess I just wait for the lates to age.

I would begin a GW letter campaign asking that the lates be forgiven if you have not yet tried it.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Stories/td-p/1573680