Experian fico score change

[Anonymous]

I track my FICO Scores through experian.com. My old 2012 Santander collection account just dropped off and I lost 24-32 points from each of the FICO Scores that are monitored and updated Daily. I’m positive nothing else changed. This account reported as a charge off monthly for the past 3 years. When this account was removed why did my score go down? It showed as an open collection account.

[Anonymous]

Was it your oldest account?

[Anonymous]

Yes, but wouldn’t the 7 years of negative reporting outweigh the average age drop?

[Anonymous]

Derogortories matters less and less as they age. I had a foreclosure drop off and I lost 30 points. It’s the algorithm.

Also it’s not just the AAOA it’s also the AOOA.

[Anonymous]

I thought closed accounts ( just confirmed it was showing closed) didn’t count in calculating age. Thanks for your response, much appreciated.

[Anonymous]

No worries. I’ve been there. 😊Best wishes.

[SouthJamaica]

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@Anonymous wrote:
I thought closed accounts ( just confirmed it was showing closed) didn’t count in calculating age. Thanks for your response, much appreciated.

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In FICO closed accounts do count in calculating age, so long as they continue to appear in your report.

[Anonymous]

So I have two other old collections I wanted to pay off with Portfolio Recoveey ehrre they now delete them after settling them. Both show closed and money owed as collections. Should I not settle these to avoid my average age decreasing further?

[SouthJamaica]

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@Anonymous wrote:
So I have two other old collections I wanted to pay off with Portfolio Recoveey ehrre they now delete them after settling them. Both show closed and money owed as collections. Should I not settle these to avoid my average age decreasing further?

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IMHO you should pay them but not "settle" them because settlements can wind up causing chargeoffs which damage your credit for a long time.

[Anonymous]

Even if I settle the collections they want to remove them from my report. Both have 5-6 years of age. These are collections from credit card charge offs originally . I just don’t want another 30 point hit from my average age decreasing again. It seems like I’m better off not settling