@Anonymous wrote:Hi FICO Family,
Just reaching out with my latest update; so my Chapter 13 was removed from Experian and Equifax and my score actually dropped above 15 points!! My mortgage scores increased; but the overall FICO dropped.
Here are the facts: I have obtained a ton of good credit since filing 5 years ago. No derogatory payments; no collections, no inquiries, no charge-offs and my credit mix is exceptional. I have been reading forums saying that their scores improved 90- 150 points; were mine did the opposite. I have seen people say "well your score dropped because you have't done what you're supposed to do" - thats not the case for me. My utilization for my cards are between 0% and 2%. I WAS upset about it; not anymore; but I wanted to shed some light to someone if they in the same boat as me. My mortgage lender said it could have dropped because it was an old account on my report and when accounts drop off; it actually can hurt in some cases. And because my Chapter 13 had a 0 balance when it was removed; it did hurt. So you don't have to be in a bad place credit wise to have your score drop when your bankruptcy fall off. My credit report actually is exceptional but my scores just took a slight dip.
Color me skeptical that your Chapter 13 dropping off dropped your score. I just think know there's something else that did it.
If this was the final derog in your file then you were rebucketed into the group of people who have no negatives and sometime this can result in Fico decreases. Over time the points are reclaimed.
There are buckets of scores. I don't think any one really knows where one begins and ends, but there is overlap. As you move towards a clean file and you are placed in higher buckets. If you where right at the top of your bucket then you could be rebucketed and thus bring your score down. Might also be your oldest account falling off at the same time which essentially canceled out the gains from the chap 13 falling too. This is because it lowered all your averages a good bit. Those average ages, oldest, youngest account, etc.. really make a difference.
I would not be surprised if you get a decent bump after everything reports again, but the good news is the BK will not hold you back any longer and you can start to make a postive uptrend.
@Anonymous wrote:South Jamaica; Why would you be skeptical? I have fine combed all three reports; nothing else has changed other than the BK removal. I dont have my list of gardened credit cards posted below; but trust me... I have my fair share, but there is NOTHING else going on.
I have busted my behind to get my credit score up since I filed due to my divorce. I'm a little offended of you think/know comment.
Positive or knowledgeable comments only please.
Sorry you're offended. I didn't mean to offend you. I just mean I think you're missing something.
You need to search the report the day of the score change and the report from the day before the score change to figure it out.
I've never heard of the dropping of a bankruptcy from a report causing a score decrease in any score model; it always causes an increase.
The advice you'd been given, about it being an "old account" that dropped off, is just wrong; a bankruptcy is not an "account", it is a derogatory public record.
While it is likely that it caused a rebucketing if it was your only derogatory entry, I don't think the rebucketing would have cost you sufficient points to cause a score drop.
