FICO score crazy drop

[Anonymous]

I just had a collection debt ($315) show up on my TU report at the end of March. I checked my TU FICO score on 3/13 and it was 772. I check it today and its sitting at an ugly 651. Keep in mind, I have no other negative items on my reports and my scores are all still high except the TU. I did recently do a big purchase two weeks ago on credit but my utilization is at 25% and it was at 3% before the purchase. My question is, how can my FICO score dropped 121 points just from this? I can see maybe 50-60 points but this is ridiculous.

[CH-7-Mission-Accomplished]

I know that this is really a rhetorical question because the answer is simply it dropped that much because that's how much it drops for a collection and that's just how FICO scores it.  A single 30 day late will usually drop scores by about 100 points so a collection would be seen as something more serious than a 30 day late -- more like a chargeoff.   Perhaps you can get it settled before it hits the other two reports?   Sometimes there's a little window or they don't report to all three.   And then try to goodwill them into removing it.   It really sucks.

[jlitnns]

And increasing utilization from 3% to 25% overall and depending on the utilization on the card that was charged it will negatively impact your scores.

[Anonymous]

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@AnonymousI just had a collection debt ($315) show up on my TU report at the end of March. I checked my TU FICO score on 3/13 and it was 772. I check it today and its sitting at an ugly 651. Keep in mind, I have no other negative items on my reports and my scores are all still high except the TU. I did recently do a big purchase two weeks ago on credit but my utilization is at 25% and it was at 3% before the purchase. My question is, how can my FICO score dropped 121 points just from this? I can see maybe 50-60 points but this is ridiculous.

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I actually think you got off pretty easy with that score drop.  You probably lost roughly 20 points in taking your aggregate utilization across the 8.9% threshold, meaning the collection constituted the remainder of about 100 points.  As stated above by another member, even a 30 day late payment can drop a score 100 points when it first happens, and that's a minor delinquency.  A collection is a major derog, so I would have expected a more severe drop to be honest.

[Anonymous]

When my $50 copay collection came off my report (clean file) my score jumped from 709 to 825 so yeah, a single collection can definitely body slam you, UTI aside.

[Anonymous]

I keep both of my cards under 30%. Well I just recently SD my Cap1 QS probably for good.

Thanks for the answers.

[jlitnns]

Good luck, you'll recover in no time!