ANOTHER PLEA FOR BUCKET CLARIFICATION

[rom828]

I've read tons of these  bucket posts but  I'm still confused  (people that know me might not find that too suprising so  I hope "those in the know" can stand one (or two)  more bucket questions!!

My report is finally looking cleaner and I'm down to 2 remaining baddies.....and boy, are they!

I have a CO slated to drop 06-10 and a PR  slated to drop 04-11($518 -I know amt doesnt matter) PAID state tax lien)

When the CO drops, am I still in my same bucket (PR and serious derog) or do I go to a "PR only" bucket, if there is such a thing?   All else being equal, should I expect a drop in my score when the CO falls off because of rebucketing? This is one of my older accts, but by my calculations, will not affect my AAoA when it drops.

When the PR drops and I get rebucketed to "no derogs", should I again expect a score decrease since I'll be compared to "clean" rather than "PR" consumers?

I'd just like to have some idea of what to expect!!

Message Edited by rom828 on 05-13-2009 07:55 AM

[smallfry]

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@rom828 wrote:

I've read tons of these  bucket posts but  I'm still confused  (people that know me might not find that too suprising) so  I hope "those in the know" can stand one (or two)  more bucket questions!!

My report is finally looking cleaner and I'm down to 2 remaining baddies.....and boy, are they!

I have a CO slated to drop 06-10 and a PR  slated to drop 04-11($518 -I know amt doesnt matter) PAID state tax lien)

When the CO drops, am I still in my same bucket (PR and serious derog) or do I go to a "PR only" bucket, if there is such a thing?   All else being equal, should I expect a drop in my score when the CO falls off because of rebucketing? This is one of my older accts, but by my calculations, will not affect my AAoA when it drops.

When the PR drops and I get rebucketed to "no derogs", should I again expect a score decrease since I'll be compared to "clean" rather than "PR" consumers?

I'd just like to have some idea of what to expect!!

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I had two public records now 1 on EQ and TU. My scores did not move higher once I went from 2 to 1 public record. As long as the PR is on your reports there will be a ceiling on your scores. Depending upon your AAofA and oldest account it could mean quite a few points. If your AAofA is not too bad you might not see a score drop might even get a nice pop when your last derog falls off the reports. If you have enough credit I would advise not applying for anything as it will do severe damage to your AAofA.

[haulingthescoreup]

+1

I don't think you'll get a bucket change until the last one is gone, but it looks like you'll be in good shape once that happens. Just stay on top of your util and be patient.

You're several years ahead of me at getting clean reports!

[RobertEG]

Most who generate credit scoring keep their algorithms proprietary, so there is little in the published literature describing how it is viewed.  Fair Isaac keeps their algorithm very secret, but other information is available for your reading and understanding.

First USA Bank applied for and received a patent in 2001, describing in detail the categories that they use to score consumers.  It is U.S. Patent No. 6,202,053.  Publicly available at uspto.gov.  It  describes their scoring algorithm based on “buckets”  are scored by them in their credit card decisions.  An interesting read.

First cut is made based on whether the credit file is “thick” or “thin.”  In general, a thin file is less than three trade lines, or no credit card.

A second major branch is based on delinquencies.  Files are classified as “clean” or “dirty”, based on the absence or presence of a major delinquency in the file, which is defined as a late of 60+, or a CO, CA, or PR.

A third major branch is %util on revolving accounts, with various sub-branches thereunder, depending upon the %util.

A fourth major branch is length of credit history.  They use less than 10 years, or 10+ years as a primary breakdown.

There are sub-branches off of these major branches, which in all, match approximately the 12 major buckets that are reportedly used by FICO.

 

This description is, of course, not published by Fair Isaac, and is not the FICO methodology, but it is one of the few published descriptions of how a major credit scoring corporation views the breakdown of multiple scoring algorithms.

We can all pontificate and speculate, but this is a public disclosure from a national creditor on how they view "buckets."  I suggest a reading.

Message Edited by RobertEG on 05-12-2009 09:21 PM

Message Edited by RobertEG on 05-12-2009 09:27 PM

[rom828]

Thank you all for your prompt responses and advices. 

I plan to take a look at Robert's suggested reading...though not sure that I'll really understand it! 

And smallfry, you and hauling have pretty much clarified for me what I thought was the case...that I need both of these to drop to get out of this bucket, which may or may not help my score initially, but certainly improves my future chances of a really nice score.  I've posted on keithc's thread "app time" about whether or not to app....maybe you can take a look and advise further. While I dont want to hurt my AAoA, I dont want to miss the boat on getting some TLs together 'just in case'.

Hauling, as far as the 'clean' report, lemme tell you, it has really been a journey....but one I could not have made without the help of the great people on this forum...like yourself....that have given of their time and advice so unselfishly.  I'll just be so excited to get both my "knowable" scores back over 700 again...and at the same time....so I can finally be in the 700 club.