Fico Score dripped 13 points - 2 changes- thoughts?

[LBVSch]

There are 2 differences on my Equifax Credit Report today vs yesterday and my score dropped
13 points.

1. I filed a dispute with Equifax on 3 medical collections on my credit report - and as of today it shows ‘dispute in progress’ on all 3 items.

2. I had a very minor balance on one of my credit cards ($168 balance on a $21,500 CL) that I paid before it was reported this month and now it shows all 3 of my credit cards with a $0 balance.

Thoughts on what made my score drop the 13 points? Thanks in advance!!

[Anonymous]

You are experiencing the "no revolving balance" penalty. It will return ur points when you report a positive balance.

[Revelate]

And all bets are off with an open dispute.

[jamie123]

I think it is all your CCs reporting a $0 balance. I lose about 18 points when I report all $0 versus 1 card reporting $3.

[Anonymous]

It sounds like an AZ penalty, but with an open dispute present thrown in as an additional variable you can't be sure without looking at negative reason statements.

[Anonymous]

It's very true that all bets are off with an open dispute. But, I am guessing it's the AZ penalty becuz all cards are reporting 0, which would call for that penalty. Plus, the dispute, if it has an effect, could/should take those items temporarily out of consideration, correct? That would cause an increase not a decrease to ignore collections, correct? So, although not 100%, I stand by my hypothesis.

[Anonymous]

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@Anonymous wrote:
Plus, the dispute, if it has an effect, could/should take those items temporarily out of consideration, correct? That would cause an increase not a decrease to ignore collections, correct? So, although not 100%, I stand by my hypothesis.

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My understanding is that it may cause the algorithm to temporarily ignore the account, not the negative item(s).

That being said, it could really result in a score increase or decrease.  To provide an example of how it could result in a decrease, perhaps the OP has a total of 5 collections but is disputing 3 of them, meaning that 2 other collection accounts are being "counted" by the algorithm.  Due to diminishing returns, 2 collections may not be scored any "better" than 5, so no score increase may be realized due to 3 of these accounts being ignored.  What if however the 3 collection accounts in dispute are very old accounts?  This could lower AoOA or AAoA temporarily, actually resulting in a score increase.

Just a different way to look at it.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:
Plus, the dispute, if it has an effect, could/should take those items temporarily out of consideration, correct? That would cause an increase not a decrease to ignore collections, correct? So, although not 100%, I stand by my hypothesis.

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My understanding is that it may cause the algorithm to temporarily ignore the account, not the negative item(s).

That being said, it could really result in a score increase or decrease.  To provide an example of how it could result in a decrease, perhaps the OP has a total of 5 collections but is disputing 3 of them, meaning that 2 other collection accounts are being "counted" by the algorithm.  Due to diminishing returns, 2 collections may not be scored any "better" than 5, so no score increase may be realized due to 3 of these accounts being ignored.  What if however the 3 collection accounts in dispute are very old accounts?  This could lower AoOA or AAoA temporarily, actually resulting in a score increase.

Just a different way to look at it.

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You mean a score decrease? Yes, I totally see what you are saying, however, if he is on a dirty scoresheet, AooA is irrelevant as it is only a segmentation factor on clean profiles, but you are correct it could indeed affect AAoA, potentially dropping scores.

Also I think ignoring the account is ignoring its attributes as well. But, admittedly, ignoring all collections would cause a rebucketing if clean otherwise. That in itself is unpredictable. Anything is possible. but, based on the exact number, I'm still sticking with my guess, although I grant you it is not 100%.

Plus, all revolvers are reporting 0. If he isn't wearing a penalty, he's supposed to be...

[Revelate]

I think you meant AOYA is irrelevant on derogatory scorecards.

AOOA is anyone's guess at this point, I really don't know that it matters unless it's conflated with AAOA which I know conclusively the "short history" reason code tracks.

Industry option scorecards have entries for longest revolver and longest installment line but the Classic ones don't.

[Anonymous]

Both are irrelevant if I am understanding correctly, and if I am not, please instruct me properly. FICO 8 has 8 clean, 4 dirty. AooA is a segmentation factor (aged/nonaged) on the clean 8. AoYA (New account/no new accounts) is also a segmentation factor on the clean 8.

On the 4 dirty, neither play a role, that I am aware of..Its either public record or not and how severe. (Excluding if it's conflated, which is possible, but I doubt.)