Equifax score dropped 18 points! What did I do wrong?

[Revelate]

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@dlm1113 wrote:

Thank you bdhu2001 and Relevate!  Your answers have helped me greatly.

Another question.  I am an AU on my husband's visa and he has 2-30 day lates within the past 12 month on his card.  Would this be hurting my score as an AU? How long before those 30 day lates stop affecting my score?

Should I ask him to remove me off as an AU?  I have 1 major cc with a $300 limit and a fingerhut card with a $200 limit.  If I take his account off, would I need to open a secured card? Thanks!

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Derogatories are never ever good, and usually I would suggest getting them airstruck any way possible.  Might be a short-term hit if it's exceptionally longer than your own credit cards and impacts your AAOA, but it's almost never worth it within a year or two if you're building well.

While generally 3 is better than 2 cards, if you have 2 of your own that's enough for building positive history; with the exception of the BOFA secured card which is a great little card in it's own right, and which graduates to an excellent long-term tradeline, I wouldn't bother for now and I'd wait till you can get a better tradeline.

@bdhu: mortgage and auto guys if we're talking the usual loan origination officers / F&I guys, well, suffice to say they had no interest in providing correct information necessarily and the amount of knowledge known by them 15 years ago was limited.   Internal scores may do whatever they want, but to the best of our knowledge it hasn't been in the FICO algorithm.

[bdhu2001]

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@dlm1113 wrote:

Thank you bdhu2001 and Relevate!  Your answers have helped me greatly.

Another question.  I am an AU on my husband's visa and he has 2-30 day lates within the past 12 month on his card.  Would this be hurting my score as an AU? How long before those 30 day lates stop affecting my score?

Should I ask him to remove me off as an AU?  I have 1 major cc with a $300 limit and a fingerhut card with a $200 limit.  If I take his account off, would I need to open a secured card? Thanks!

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My understanding is that being an AU on a card with bad info hurts just like being AU on a good account helps.  Look at the rebuilding your credit section for information on secured cards and other ways to build your credit.  I don't know how much a boost you get for age of credit as opposed to the hit for two 30 day lates.  

I found this information on 30 day lates: 

30 Days

• Paying a loan debt 30 days after the due date results in a stain on your credit report. Credit reports detail your payment activity and the extent to which you are late on payments following 30 days. According to CNN Money, a 30-day late payment can cost you between 40 and 110 points on your credit score. The extent to which your credit score drops is based on the status of your other credit accounts and your length of credit history. Generally, borrowers with a longer, positive payment history on all accounts suffer less of a drop in credit score than borrowers with other accounts in bad standing.
• Additional Deliquency

• Creditors report information to the credit bureaus every 30 days. Each 30-day period that passes without your loan being brought current results in a drop in your credit score. The penalty for a 30-day late payment is the same at the 60-day late mark. However, once your account becomes 90 days late, the drop in your credit score becomes more severe. CNN Money notes that borrowers behind 90 days or longer generally suffer a drop in credit score equaling 70 to 135 points.

Additionally from: "Late Payment Secrets Revealed" http://www.credit.com/credit-reports/late-payment-secrets-revealed/

• 30 days late – This record will damage your credit scores most when it is recent. The exception is if you are 30 days late often. Otherwise, a single 30-day late payment should not cause lasting damage.

Based on what I'm finding, it may be best to get off the AU and apply for another card. But I don't know if you should go the secure card route and I'd need to know more about your situation.  There used to be some department stores that automatically give you a credit card if you have a major credit card. There's pros and cons of both methods. Again go to the rebuilding credit section for better assistance.

[dlm1113]

Thank you both!!!

I will do that!

[dlm1113]

So after looking at my TU report, I see that First Premier changed my closing date from August 2011 to August 2014 after removing the "account closed by consumer" clause.  I am assuming this is why my points dropped so far??  In a letter they just sent and on previous reports, it shows that they closed my account in 8/2011. So if I ask them to change it back will my score come back any?

Thanks!

[fused]

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@dlm1113 wrote:

So after looking at my TU report, I see that First Premier changed my closing date from August 2011 to August 2014 after removing the "account closed by consumer" clause.  I am assuming this is why my points dropped so far??  In a letter they just sent and on previous reports, it shows that they closed my account in 8/2011. So if I ask them to change it back will my score come back any?

Thanks!

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How much did your AAoA (average age of accounts) shrink?

[dlm1113]

It looks like it dropped 6 months off of an already short AAofA. was at 3 years but now it is 2 years 6 months per TU.

[bdhu2001]

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@dlm1113 wrote:

So after looking at my TU report, I see that First Premier changed my closing date from August 2011 to August 2014 after removing the "account closed by consumer" clause.  I am assuming this is why my points dropped so far??  In a letter they just sent and on previous reports, it shows that they closed my account in 8/2011. So if I ask them to change it back will my score come back any?

Thanks!

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It will make a difference, but I don't know if all of your points will come back.  August 2011 shows that you had problems over 3 years ago on a closed account.  August 2014 looks like recent trouble to me and I know dates are used in the FICO algorithm.  Mostly date of derogatory item (i.e .30 day late charge off, etc).  Does it look like it changed the date of the derogatory item?  I've seen that happen to others and it definitely made an impact on their score.

Unfortunately, the creditor also has the right to report a CO every month so it could be that they are simply updating how the CO is reporting. So does the closed date show August 2014 or are you now seeing CO in August 2014?

[dlm1113]

I just see that the closed date is 8/2014 which is a full 3 years later!

[fused]

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@dlm1113 wrote:

I just see that the closed date is 8/2014 which is a full 3 years later!

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Notations on credit reports about who closed an account has no impact on FICO scores. Your AAoA dropped a year and the status on your CO with FP updated as more recent. The latter alone could easily drop FICO's by 18 points.

This is just a reminder to be careful what you dispute.  All of us make mistakes in the repair/rebuild process. It's a lesson learned.

[dlm1113]

Thanks Fused....from now on I will make sure that I consult this forum before making any disputes or sending any letters.  Lesson learned.  At least now I know the reason why it dropped.  It does make since to ask them to change the date correct?  The letter they sent me this week states that they did close the account in 8/2011.  There are no dates in the remarks, just the CLOSED DATE states 8/2014.