cancel
Showing results for 
Search instead for 
Did you mean: 

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

Contributor

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

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.
5 REPLIES
Super Contributor

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

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

Message 2 of 6
Contributor

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

The CO was under a year old so my first thought was rebucketing.
Message 3 of 6
Super Contributor

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

Do you have other negative items on your credit reports?

Message 4 of 6
Valued Contributor

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

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. 

Fico 8: .......EQ 850 TU 850 EX 850
Fico 9: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
VS 3.0:...... EQ 835 TU 835 EX 835
Fico 8 BC:. EQ 892 TU 900 EX 900
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 5 of 6
Contributor

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

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
Message 6 of 6