Never heard about rebucking either but it makes sense for me. I'm definitely in a "dirty" bucket, with lots of chargeoffs/collections and two judgements.
All that said, my score has improved. I don't know if this info will help you but even with some setbacks it has gone up. I'm only listing my TU Fico 8 because that's all I've consistently tracked.
The simple version of the story:
8/16 - 560. My low point.
This was just after the last of my charge offs. 5 credit card accounts in collection at this point. Lates on my mortgage and SL.
12/19 - 651. Highest in years.
Two of my collections turned into lawsuits, then judgements.
Opened a new CC, personal loan, and auto loan. All currently in good standing.
Paid off existing CC acounts. Basically at zero UTI (1%) on my CC.
Paid of the personal loan I opened.
No new lates on my existing accounts.
The judgements are clearly holding me back, and I do plan to resolve them in 2020. Wish I could have done it sooner but I had a lot of back taxes to pay and that seemed way more important (no liens because of the taxes luckily).
Maybe that helps you some, I don't know. I can say that the progress has been very incremental, and some months I've had drops. But overall a 91 point jump. Slowly, but up.
Usually, after a couple of years, the credit improves. This has not been the case and I have paid off some accounts in full.
As of today, my credit score are these:
Equifax 521, Transunion 522, Experian 543
Repossession (car) - 8/2015 Charge off
Credit card - Debt $900 10/2014 Charge off
Credit card - Debt $7000 10/2014 Charge off
Credit card - Debt $3000 10/2104 Charge off
Credit card - Debt $300 11/2014 Charge off (I actually paid this)
Credit card - Debt $2200 4/2013 Charge off
Collections for $7000 debt above (attorney)
Collections for $3000 debt above
Collections for $198.00 which I will pay.
So my question is "WHY" it hasn't improved one bit. That 520-540 score has been the same since 2015.
I have paid off three other debts that too did not improve the score. More than likely I will pay off the $900.00 debt. However, if these do not improve my score, frankly, there is no incentive to pay off the other debts, as 7 years will have passed by.
This is my confusion...
This is great information and explains your low scores but I have a question...
Do you currently have any open credit accounts? Your scores won't go up unless you are demonstrating good use of credit. Even with all the baddies on your report you should be able to get your scores into the low 600s by demonstrating good use of credit for at least 6 months.
You may be getting rebucketed. Here is a link to understand what rebucketing mean. But the key is--don't give up. There is a light at the end of the tunnel.
Also, others will come along to shed more insight on what is happening.
Outstanding read! Glad you brought it forward for others to benefit from. Knew a lot of the information from others but, now I actualy read it for myself!
Unfortunatley with so many charge offs, you're likely going to have to wait out them falling off your CR before you see any real change.
I waited and went without any major CC for ten years. My trouble happened in 02, and I didn't start getting back into the credit world until about 2011. Mostly with very small limits and secured cards as well as Banks like Merrick. It wasn't until 2016 when i started getting major cards like Discover, Citi, Chase, Amex etc.
If you don't have any current open accounts, I woukd suggest at keast getting a secured card ans then look into merrick. Having accounts in the positive reporting will help interim.
Yes and Yes.
The positive accounts are as an authorized user. And yes the existing baddies are all high utilization.
As an authorized user. Not exact on the utilization but it's very low. One card it maybe around 15% and other cards 0%
This has been my biggest surprise as my credit card did not improve at all by being an authorized user. My partner has excellent credit.
Nmk94 this is a big help! Thanks for taking the time to write this and share it.
Those scores of starting and after were quite revealing too and good for you for improving it! I suspect the loan and paying it off were certainly instrumental in improving your score as it is an installment loan as well as the auto loan which you are paying off. Can I ask you what type of credit card you opened? It's ok if you don't want to say...
From this, I can do two things. One...getting an installment loan. Just keep it in the account and don't touch it. Perhaps a secured credit card as well if they are available. Does anyone know if there are secured credit cards?
I do have open credit accounts but only as an authorized user which seems to have done nothing. Not sure if that counts. For the record, I have been an authorized user for 3-4 years. No improvement in credit score.