Bucketing

[Sbrooks1]

Could someone please explain the bucketing concept!! I am so confused!

[Revelate]

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@Sbrooks1 wrote:
Could someone please explain the bucketing concept!! I am so confused!

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TBH it can be ignored.

Bucketing simply sticks you in a bin, 4 negative bins, 8 positive ones under FICO 8, and that bin has a max and minimum score (not the standard 300-850 we're all familiar with).  Effectively the goal is to compare you credit wise with similar files so brand new Charles Creditnew isn't scored against Christy Creditmagnificent... it's a way of establishing credit risk for your comparable file strengh, whereas if I were compared to say TT's 850 on this forum, my score would be way worse than it is right now even heh.

[Sbrooks1]

How do you know when you've been "rebuke red" or changed ? Can I influence this in any way? Thanks so much

[Sbrooks1]

How do you know when you've been "rebucketed" or changed ? Can I influence this in any way? Thanks so much

[RobertEG]

The category, or "bucket," you are in is actually a different scoring algorithm (called a "scorecard" in the literature)  that is tailored to the characteristics of similar consumers in with those similar characteristics.

Beyond that, the specifc criteria used to establish the buckets as well as the inner workings of those scorecardss remains a proprietary trade secret.

Divulging that level of detail would harm their trade secret by permitting possibel reverse engineering of the methodology.

What you will see are unexpected changes in scoring based on what appears to be a minor change n one's credit report, such as only aging by as month, but seeing a blip up or down in scoring.

It is  frustration that one must live with.

Scorecard buckets are often referred to as thin or thick files, or clean or dirty payment histories, as defined by the presence or absence of major derogs.

A typical example in movement  from one bucket to another is when all major payment history derogs are removed from the consumer's scoring.

Up to that point, deletion of one collection generlly has minor score improvement, whereas removal of the last collection usually shows significant score improvement.

[Sbrooks1]

Thank you Robert!

[Anonymous]

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@Revelate wrote:

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@Sbrooks1 wrote:
Could someone please explain the bucketing concept!! I am so confused!

---

TBH it can be ignored.

Bucketing simply sticks you in a bin, 4 negative bins, 8 positive ones under FICO 8, and that bin has a max and minimum score (not the standard 300-850 we're all familiar with).  Effectively the goal is to compare you credit wise with similar files so brand new Charles Creditnew isn't scored against Christy Creditmagnificent... it's a way of establishing credit risk for your comparable file strengh, whereas if I were compared to say TT's 850 on this forum, my score would be way worse than it is right now even heh.

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What happens of Charles and Christy get married? 

[Appleman]

They have Baby App A Lot?

[Sbrooks1]

Right!! Sure they side on the low end!!!

[Revelate]

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@Sbrooks1 wrote:
Right!! Sure they side on the low end!!!

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Only for mortgage purposes