Had my last collection completely deleted and score.. drops 10 points?

[Anonymous]

I don't get it. I did a PFD to the original creditor (Sprint) on a collection they had (ERC reporting). It was from 2015, showing up as a derog.

It was removed from my experian and transunion report. Experian dropped 10 points because of this? I have no other collections on my report. Paid or unpaid. zero. Why would my score drop on a final and only collection being removed? It was a phone bill so it's not like it was factored into average age or anything.

No update on Trans yet, or at least I haven't gotten a notification.

[Anonymous]

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@Anonymous wrote:

I don't get it. I did a PFD to the original creditor (Sprint) on a collection they had (ERC reporting). It was from 2015, showing up as a derog.

It was removed from my experian and transunion report. Experian dropped 10 points because of this? I have no other collections on my report. Paid or unpaid. zero. Why would my score drop on a final and only collection being removed? It was a phone bill so it's not like it was factored into average age or anything.

No update on Trans yet, or at least I haven't gotten a notification.

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How long ago did they remove the collection? Although removed, your report may not have officially updated yet, thus refleting an inaccurate score. I had a collection removed yesterday with EX and they said it could take up to 24-48 for the new report to generate. I received alerts (from my EX monitoring) the collection had been removed. I purchased an updated report only to find my score dropped. Today, my score is substantially higher with an updated report. If your removal was recent, it may still be in the process of actual removal from your report.

[Anonymous]

OP, your score did not drop due to the removal of the collection.  FICO scores don't drop when major negative items are removed.  They don't necessarily increase, as sometimes they stay the same, but they can't drop.

Do you have any other major negative items present outside of the collection?  Something like a 90+ day late payment?  If so, the removal of the collection is likely to result in little to no scoring gain at all if other major negative information is present.

If this WAS your only major negative item present, your score will increase and usually to the tune of 70-80 points on average once the account updates with the CRAs and a new FICO score is generated using the updated bureau data.

[Anonymous]

I had paid Sprint last week and they told me they would retract the original debt from ERC and ensure the insertion was deleted.

That actually happened. Today I woke up and boom it's gone. However Experian hasn't even sent me a notification on it yet. Since my rebuilding I check my scores often per monthly products. Checked this morning.. Score down and collection is gone. Maybe the system hasnt recognized it yet?

I do have 4 chargeoffs. 2 finally are showing PAID and the other 2 are still showing negative. They have been paid but still waiting on the update from CAP1. No other collections. Just kind of strange considering my scores have been on the steady climb. Paid off my car loan boom lost 25 points, now finally back up, boom lost some more after collection deleted lol.

AAOA is 2 years 11 months for experian. Hopefully I get a small boost when I hit 3 years. I'm trying to buy my condo here in a few months and these score drops are killing me. I paid off all my negative junk and had 5 collections completely removed. Almost 60-100 point increase across all 3 in 6 months. I guess I'll give it some time to recover. Patience Patience.

I also read about possible being re-bucketed since there are zero collections, judgements, liens

[Anonymous]

It sounds like you have a very practical concern, which is getting a home loan in the next few months.  You are looking at the wrong set of scores (your FICO 8 scores).  It is of zero importance what those are or what fluctuations might be happening to them.  All that matters is what your mortgage scores are doing.

I am not a big promoter of the $40/month myFICO Ultimate credit monitoring tool -- I usually gently attempt to steer people toward tools that are free.  But in your case, you need to purchase it so that you can get your mortgage scores once a month.  Obviously once you buy your place you can cancel it.

Have you paid all your cards to zero ecept one -- with the remaining card reporting a small positive balance?

[Anonymous]

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@Anonymous

I do have 4 chargeoffs. 2 finally are showing PAID and the other 2 are still showing negative. They have been paid but still waiting on the update from CAP1.

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Here's the issue, IMO.  If you still have other major negative items present, removing one (your collection) isn't going to have much if any scoring impact.  My guess is that you gained 0 points from the removal of the collection and simply lost 10 for another reason such as a utilization change (for example).  Your score change and the removal of the collection are not at all related.

[Anonymous]

I thought that as well. Capital One informed me my last 2 chargeoffs would be updated to paid in about 2 weeks.

Originally I had 5 negatives. Now I'm down to 2. 

Had 2 chargeoffs marked PAID and the collection removed. The other 2 chargeoffs were paid in the last few weeks so they show 0% util now but are still reporting a negative. 

I haven't done AZEO yet. I was waiting till July to pump it. I only have about $1900 in revolving against $13,500 credit limit. I should expect a decent UTIL boost here in a few days when all cards report as it'll be the first time in a few months under 29%

Which is the mortgage score? Mortgage 5? I think my EQ and Trans are around 620 but EQ is lower. Trying to get them in the 650 range before applying. Need CAP1 to update the last 2 negatives.

[Anonymous]

Small update...

Transunion deleted the collection today...

20 point increase!! 643!! Highest any of my scores have been since 2014 haha. Yeah buddy!