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Transunion drop after bankruptcy removed

Sbrav77
Established Member

Transunion drop after bankruptcy removed

I have finally reached the time my bankruptcy has dropped off all 3 credit bureaus. It started with Experian and my fico 8 score went up 29 points. This increase was mirrored on credit karma as well. A few days later on myfico, I was greeted with the bankruptcy falling off Transunion.  However, my fico8 score actually dropped 4 points.  Credit Karma showed a 19 point increase. Still waiting on Equifax to drop the bankruptcy on myfico.  It's already shown as removed on CK. Any suggestions as to why the drop on Transunion? The reported data is identical as far as credit usage,  limits, on time payments etc.

Message 1 of 15
14 REPLIES 14
OmarGB9
Community Leader
Super Contributor

Re: Transunion drop after bankruptcy removed

Could be because of "rebucketing." Are there still lates/charge offs/collections showing on your reports?


Last App: 05/30/2021
Capital One Auto Refinance Loan

Currently rebuilding as of 04/11/2019.

Starting FICO 8 Scores:




Current FICO 8 scores:


Message 2 of 15
Sbrav77
Established Member

Re: Transunion drop after bankruptcy removed

There is one medical collection from 2015. I have 2 old charged off accounts from 2017 showing a 0 balance.  I also have several old late payments from approximately 3-4 years ago. Only real difference I can think of is I had one of my old charged off accounts sold that was reported to Transunion. I immediately paid it and the collection company removed the collection from my Transunion account and my score immediately went back up to what it was before the collection was reported.

 

Message 3 of 15
Sbrav77
Established Member

Re: Transunion drop after bankruptcy removed

Here is the credit karma and my fico scores. Transunion went up on CK and at the same time down on MY fico.Screenshot_20211010-191054_myFICO.jpg

 

Screenshot_20211010-191022_Credit Karma.jpg

 

Message 4 of 15
HowDoesThisAllWork
Frequent Contributor

Re: Transunion drop after bankruptcy removed

@Sbrav77 

 

Good morning!  I am up, bright and early so I thought that I would spend some time in here!

 

I say this with a smile and a chuckle, but I would humbly suggest that you not worry tooooo much what happens on Credit Karma.  I have an account with Credit Karma (and Credit Sesame for that matter) and I look at CK all the time.  But, I look there more from a "Has this Credit Card update?, has this Loan hit yet?" perspective.

 

Credit Karma shows you scores from the VantageScore 3.0 scoring model....and ***NOT*** from FICO.  CK scores tend to be (potentially significantly) higher than FICO scores.  And they (VantageScore 3.0) have different algorithms that "value" (or, I could have also used the word "weight") things differently from FICO.

FICO8 Scores as of 2021 JULY 21:


FICO Auto 2/4/5 Scores as of 2021 JULY 21:


FICO Bankcard 2/4/5 Scores as of 2021 JULY 21:


FICO Mortgage 2/4/5 Scores as of 2021 JULY 21:


Starting Score: Exp 699
Current Score: Exp 699
Goal Score: Exp 750


Take the myFICO Fitness Challenge
Message 5 of 15
HowDoesThisAllWork
Frequent Contributor

Re: Transunion drop after bankruptcy removed


@OmarGB9 wrote:

Could be because of "rebucketing." Are there still lates/charge offs/collections showing on your reports?


Exactly what I was thinking......

 

But, OP then stated that there are a few charge offs and lates still remaining on his/her credit reports.  The "rebucketing" would likely have happened in the event of moving from a dirty scorecard to a clean score card.  That would have made a ton of sense.

 

So, why the drop in score?  Because in the dirty score card OP has limited movement (with respect to score).  Moving to a clean score card OP would likely be at the bottom of this new score card and would not "measure up" so well - at this point in time - against his/her new colleagues.  So, a score drop happens.  But, there is A LOT more mobility with respect to score.  And with a bit of time and solid performance his/her score could experience really nice gains.  Then OP gets moved up to the next bucket.

 

Is there a possibility that OP moved from one dirty score card to another?  Sure.  From a D3/D4 to a D1/D2 (dirty public record mature/dirty public record recent to dirty delinquent mature/dirty delinquent recent).

 

Unless I am mistaken, a bankruptcy would classify as a "public record" while a charge-off/late would be classified as "delinquent" in terms of "bucketing" (or, segmentation) within the FICO system.

 

Did I miss the age of the accounts?

 

And did I miss how late those lates were from "approximately three - four years ago"?

 

I ask because a 30-day late is not a major derogatory but a 60-day late does indeed count as a major derogatory (which results in one being classified in a dirty score card...not on the "Public Record" side, but on the "Delinquent" side).   So, if the bankruptcy is the only major derogatory - and that just fell off - and the lates from three years ago (roughly) were "only" 30-day lates then OP could indeed be in a clean profile.

 

But, since OP clearly stated that there are a few charge-offs that means that this bankruptcy is one of several major derogs on OPs Credit Reports.  Thus, moving from a dirty score card to a clean score card is not possible (as the explanation for the drop in score).

FICO8 Scores as of 2021 JULY 21:


FICO Auto 2/4/5 Scores as of 2021 JULY 21:


FICO Bankcard 2/4/5 Scores as of 2021 JULY 21:


FICO Mortgage 2/4/5 Scores as of 2021 JULY 21:


Starting Score: Exp 699
Current Score: Exp 699
Goal Score: Exp 750


Take the myFICO Fitness Challenge
Message 6 of 15
HowDoesThisAllWork
Frequent Contributor

Re: Transunion drop after bankruptcy removed

@Sbrav77 

 

If you do not already do so, then please allow me to suggest that you take a look at anualcreditreport.com and get all three of your Credit Reports (from Equifax, Experian, and Transunion).  Look for all of the "Adverse Accounts" (or "negative" accounts) to ensure that you are seeing everything that is there.

 

Since the pandemic, we are allowed to get our credit reports every week (through April, 2022 at this point in time...who knows if this will be extended again).

 

This (looking at each CRA report) will give you a very clear picture of what is going on.  Not suggesting that you do not have a clear picture.

FICO8 Scores as of 2021 JULY 21:


FICO Auto 2/4/5 Scores as of 2021 JULY 21:


FICO Bankcard 2/4/5 Scores as of 2021 JULY 21:


FICO Mortgage 2/4/5 Scores as of 2021 JULY 21:


Starting Score: Exp 699
Current Score: Exp 699
Goal Score: Exp 750


Take the myFICO Fitness Challenge
Message 7 of 15
FireMedic1
Super Contributor

Re: Transunion drop after bankruptcy removed


@Sbrav77 wrote:

There is one medical collection from 2015. I have 2 old charged off accounts from 2017 showing a 0 balance.  I also have several old late payments from approximately 3-4 years ago. Only real difference I can think of is I had one of my old charged off accounts sold that was reported to Transunion. I immediately paid it and the collection company removed the collection from my Transunion account and my score immediately went back up to what it was before the collection was reported.

 


The Collections, 2 Charge Offs, Several lates (30,60,90, or 120 day lates?) were left over after the BK is gone. Now your where most others with the same baddies sit without a BK. These are all kinda newer baddies than the right before it fell off 10 yr old BK. So actually your on your second rebuild all over again since BK. The CO's rank right below a BK. So its GW Letter Saturation time for the lates. The CO's are there to stay. And hoping there arent any 90 or 120 day lates. They're next in line under CO's. So in a way on a brighter side. Rebuild 2.0 has begun.

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/The-Saturation-Technique-Best-GW-adjustment-... 

For the med collection from Mod @gdale6 :

1. Call the OC and see if insurance can be billed, (or-rebilled), collections ultimately paid by insurance get removed per new rules that came from CRAs settlement with 22 state AGs. If not then
2. see if you qualify for Charity Care, if not then
3. ask that they recall the collection in exchange for full payment
4. Send the reporting CA a PFD offer
5. Google the HIPAA Process and contact its creator for help, this process cannot be discussed in any forum of myFico.

Good Luck!






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 8 of 15
HowDoesThisAllWork
Frequent Contributor

Re: Transunion drop after bankruptcy removed

@FireMedic1 

 

Good morning, good sir!

FICO8 Scores as of 2021 JULY 21:


FICO Auto 2/4/5 Scores as of 2021 JULY 21:


FICO Bankcard 2/4/5 Scores as of 2021 JULY 21:


FICO Mortgage 2/4/5 Scores as of 2021 JULY 21:


Starting Score: Exp 699
Current Score: Exp 699
Goal Score: Exp 750


Take the myFICO Fitness Challenge
Message 9 of 15
FireMedic1
Super Contributor

Re: Transunion drop after bankruptcy removed


@HowDoesThisAllWork wrote:

@FireMedic1 

 

Good morning, good sir!


Sup! Mocha Dunkin in hand! Smiley Happy






Homeowner since Sept 2020. My posts are JMHO. My siggy is not to brag. Just sharing my experiences after BK from learning here from rebuild to recovery from the @ 540's.
Message 10 of 15
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