So Frustrating.Makes No Sense!!

Anonymous · ‎02-27-2012

I've done a pretty good job with cleaning up my credit in the past 3 months.I had 3 collections,paid federal tax lien,and a paid state tax lien deleted from all 3 reports.

The problem is that I expected that when my federal tax lien was deleted that I would gain a few points atleast(paid 2011,reported 2009).Especially with it being my last PR on my reports.I was shocked when I pulled my Fico again yesterday and my score had actually gone down 2 points to 594.

So frustrated.How could the removal of my last PR cause a score decrease with nothing else negative happening??I have a SL late from 6 months ago(90 days) but current since, and a paid medical collection.2 new CC's(2 months old) and 20k student loan debt.

llecs · ‎02-27-2012

Loss could be due to rebucketing.

RobertEG · ‎02-27-2012

With other prior major derogs and a recent delinquency in your file, removal of the one major derog most likely did not result in your reclassification to a better scoring bucket.

You remain in a "dirty" scoring bucket, and in that scoring category, the deletion of one derog most likely had little scoring impact.

I cant speak as to why the score actually went down, as I dont know what other information in your file might have changed, but am not surprised that it did not go up much, if at all.

You will most likely see a significant the boost when your derogatory history becomes clean.

llecs · ‎02-27-2012

@RobertEG wrote:
With other prior major derogs and a recent delinquency in your file, removal of the one major derog most likely did not result in your reclassification to a better scoring bucket.
You remain in a "dirty" scoring bucket, and in that scoring category, the deletion of one derog most likely had little scoring impact.
I cant speak as to why the score actually went down, as I dont know what other information in your file might have changed, but am not surprised that it did not go up much, if at all.
You will most likely see a significant the boost when your derogatory history becomes clean.

I'll double check in one second, but it's my understanding there are roughly a dozen buckets, give or take a couple. From FICO, there are separate buckets for PRs and other baddies like CAs and lates 90+. Again, I'll confirm but with all else being equal for OP, this would explain the loss when the PR was removed.

Anonymous · ‎02-27-2012

I did expect to see some point gain but I also understand the reason why it wouldnt increase since i have other negs.What really surprised me was the point loss though.Rebucketing would explain it if that is what happened.When put into a different scoring bucket,is it possible to see a score increase at a specific time like at the beginning of march,or will it take me just as long to build my score.Basically,will a new bucket increase the speed that my score will increase since i no longer have a PR?Thanks again everyone..