Experian Fico 8!increase but Fico 4 decrease on paid CO?

[Anonymous]

I’m following my mortgage scores as I’m looking to buy a house this summer. I have Experian monitoring as the service includes daily updates to both Fico 8 as well Fico 4.

I had an item charge off last August. I paid the item in full and it reported as paid yesterday. I noticed that my Fico 8 went up 11 points but my Fico 4 went down 4 points. Why?!

I looked at account activity for both days. Nothing derogatory hit nor did my utilization go up. I’m sure this payoff caused the update but how long would it take for my Fico 4 to recover? I was hoping to start the Pre-Approved process early next month but now I’m worried I might have to wait a while.

[Anonymous]

While it may not be impossible to to rebucketing, it's extremely rare for the removal of a negative item/account to result in a score drop.  I would suggest that the drop came from something else, but would like to hear what other opinions are on this

[Anonymous]

The CO was under a year old so my first thought was rebucketing.

[Anonymous]

Do you have other negative items on your credit reports?

[Thomas_Thumb]

FWIW - The Experian score used for mortgages is Fico 98 (Experian Fico score 2). It is true that 3B reports do include Experian Fico 04 (Experian Fico score 3) but, the mortgage standard is Experian Fico 98.

In contrast, mortgage lenders have standardized on Equifax Fico 04 and TransUnion Fico 04. 

[Anonymous]

I checked the mortgage score and it was Experian Fico 2. My apologies in stating Fico 4. Too many versions.

To the PP that asked about other baddies, I do have some lates from last year. If anything I think they would have aged and had less of an impact.

I’m really just trying to figure out with the other factors remaining the same....meaning now new CO, collections, Late’s, etc why would one score rise while the other falls. I guess if Fico 2 would have stayed the same I would care