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Charge off deleted but score dropped

Rockerbaby187
New Contributor

Charge off deleted but score dropped

I guess I have a weird situation. I have a charge off and it was deleted off my Transunion account but my score went down 18 points. My mortgage score went up though. Is this normal? I thought scores would go up if it was deleted. I'm kind of afraid for it to be removed from Equifax and Experian now. I don't have a thin file. My oldest account is 15 years. I'm not sure the average age of the Transunion account. My utilization is kinda high but I'm working on that but It didn't go up so that shouldn't have effected it. The only change was the charge off being deleted. Does anyone know why this happened and what I can do to fix it? 

$20,000
$3,150
$2,500
$2,000






9 REPLIES 9
LaHossBoss
Senior Contributor

Re: Charge off deleted but score dropped


@Rockerbaby187 wrote:

I guess I have a weird situation. I have a charge off and it was deleted off my Transunion account but my score went down 18 points. My mortgage score went up though. Is this normal? I thought scores would go up if it was deleted. I'm kind of afraid for it to be removed from Equifax and Experian now. I don't have a thin file. My oldest account is 15 years. I'm not sure the average age of the Transunion account. My utilization is kinda high but I'm working on that but It didn't go up so that shouldn't have effected it. The only change was the charge off being deleted. Does anyone know why this happened and what I can do to fix it? 


Was this your only derog on your CR? 




Starting Score: 2•20 | EQ 550 | TU 498 | EX 505
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Message 2 of 10
Rockerbaby187
New Contributor

Re: Charge off deleted but score dropped

I have a couple late payments from almost 7 years ago that are going to drop off soon. Other than that, that's the only negative thing on my credit. I pay for myfico and watch it like a hawk. I pay everything on time. I pulled my report on annualcreditreport just to double check to make sure myfico wasn't missing anything and it's all the same. 

$20,000
$3,150
$2,500
$2,000






Message 3 of 10
Crysis
New Contributor

Re: Charge off deleted but score dropped

how long ago was the charge off from? My initial reaction is maybe it messed with average age of accounts.  

did your account mix change?  Maybe this was an installment loan and you were dinged for not having something in that category?

 

you said util is high.  I'm assuming it's been high rather than it increased...

 

these are the ideas I have

In the garden since 06 Nov, 2020. Plan to stay til March/April to get one more card for the AZEO, then garden for at least a year.
New acquisitions
Kohls 0/300 Nov2020
Capital One 25/300 0ct 2020
Message 4 of 10
Rockerbaby187
New Contributor

Re: Charge off deleted but score dropped

It was opened in 2010 so yeah its older but not my oldest account. It's Verizon charge off from a bill they said we owed but we didn't and I refused to pay it because they couldn't show where we owed it. Utilization is the same... High but I'm working on getting it lower. It wasn't an installment loan or a credit card... Just a phone bill. I didn't even have a phone financed on it... I don't think they did that back then. I was thinking it messed with account age but would that really make my score drop 18 points if it did? But then... Why would that be counted in the account age since it's a negative account?

 

Edited to add.. It was charged off in 2014

$20,000
$3,150
$2,500
$2,000






Message 5 of 10
Crysis
New Contributor

Re: Charge off deleted but score dropped

No further ideas, sorry.  

didn't want you to think I just didn't see or didn't care enough to respond though.  

Hopefully whatever it is rebounds soon

In the garden since 06 Nov, 2020. Plan to stay til March/April to get one more card for the AZEO, then garden for at least a year.
New acquisitions
Kohls 0/300 Nov2020
Capital One 25/300 0ct 2020
Message 6 of 10
BrutalBodyShots
Super Contributor

Re: Charge off deleted but score dropped


@Rockerbaby187 wrote:

 

Why would that be counted in the account age since it's a negative account?

 


All accounts on your credit report are factored into age of accounts equally, whether they are positive/negative, open/closed, etc.

 

You mentioned earlier that you had late payments on your CR.  What was the severity of those late payments?  If even one of them was 90+ days, in terms of negative item severity your removed CO was equal.  That being the case, the deletion of 1 negative item when you have 1 or more of equal severity left behind can often cause no score gain at all.  If your worst severity late payment was only 30-60 days, deleting the CO should have resulted in some score improvement.

Message 7 of 10
Rockerbaby187
New Contributor

Re: Charge off deleted but score dropped

I have 2 late payments 30 days late almost 7 years ago. They should fall off soon. 

$20,000
$3,150
$2,500
$2,000






Message 8 of 10
Birdman7
Super Contributor

Re: Charge off deleted but score dropped

Your 30 day lates do not place you in a dirty card, your chargeoff did. When the chargeoff was deleted your scorecard changed from a delinquency scorecard to clean scorecard. That is what caused the score drop.

Think of it as it going from the top one ladder to the bottom of another. You’re now being compared to a different sub population. With time your scores will improve.
-Scoring wisdom: General Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
CassieCard’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 9 of 10
Birdman7
Super Contributor

Re: Charge off deleted but score dropped

As a matter of fact please list your before and after negative Reason Factors and that should confirm it.
-Scoring wisdom: General Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
CassieCard’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 10 of 10
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