I have POSSIBLY cracked the FICO code .. Maybe? Weigh in !

[Anonymous]

So, I was super angry all day yesterday... Had my LAST collection removed, and my score DROPPED from 642 to 632!  I was irate, as I was expecting a score boost.  Granted, the COL was 6 years old and I got it off as an EE.  I was understanidng that the last collection, regardless of age, was hurting my score -- nope.  Called FICO and this is not the case at all.  FICO Mgr explained the reason fro my score drop was the 3 new INQs, as the COL was so old it was barely affecting my score anymore.. So here we go:

On 9/23, I did 3 apps (stupidly - I have a lot of INQs) for CC - Cap One, BofA and Citi.  Citi denied, BofA reconned to approval and CapOne denied based on "Unable to pull TU report" as it was frozen.  These INQs showed up on my EXPERIAN report on 9/24, all 3 - but NO score drop.  Then suddenly, on 9/28 (yesterday) the medical collection was deleted AND a old inquiry from 2013 -- andf BOOM, score dropped 10 points! When I called myFICO, they looked at my reports from 9/24 and 9/28 side by side for 30 min, and confirmed the only changes were the INQs and collection deletion!!  The INQs did NOT cause a score drop until the collection came off yesterday -- so what IM THINKING (at least for EXPERIAN) it seems that scores are not triggered to re-calculate until the next trigger hits the report - i.e. INQs x 3 on 9/24, but score updated due to INQs on 9/28.  This ALSO happened last month when I got a big recent COL removed from PORTFOLIO RECOVERY -- no score change until a random inquiry fell off my account 2 days later and BOOM!  Score raised 24 pts!  One INQ falling off would not raise 24 pts, no way.  ** THE GOOD NEWS is CapOne is removing their INQ because it denied me for not pulling my credit, even though it was able to pull EXP!!!  So one less INQ!

It''s olny a theory at this point, but I will test it again on Monday when my UTIL reports from 39% - 30% or so.  If I see a significant score boost, I think I have my answer.  There is alot going around about "RE BUCKETING" which kind of is what this sounds like as well ... We will see.  All in all, it seems to be the trend that scores do not immediately re-calculate when certain triggers hit the report - INQs, removals, etc.  Any insight would be great if others notice that scores do not update immediately upon removals/additions/INQs etc to your reports?

Snapshot.

Score for EXP 632 as of 9/28.  Was 642.  FICO 8 -- Strangely, FICO 04 for EXP is unchanged at 650.  Didnt move.  UTIL 39% (report to 30% on Monday).  

0 COLLECTIONS!!!  as of 9/28

1 OLD Charge off with FP Bank, from 2009.  Aging off 3/2016.

1 Charge Off for $250 with CapOne from 2012; sold to PRA and reported $0 balance in 2014.  Paid PRA, they REMOVED last month.  Score UP 24 pts.

Last late was 1 year ago, only 30 day late on Student loan.

All debt is 100% current for 12 months.  $11,950 in unsecured credit.  AAofA unchanged by collection removal - 6.7 years; 12.5 yr oldest.

[jamie123]

Yeah, only certain things are triggering events. There are several threads on here that explain what they are and what doesn't cause a re-scoring.

You still have the CO from FP Bank on your report. I thought you said you didn't have any more COs on your report? As long as that is on your report it is holding your scores down.

The 30 day late is also holding your score down. The effect it has on your scores will lessen once it turns 2 years old but right now it is fresh and hurting you.

[Anonymous]

Jamie - a Charge off is NOT the same as a collection account they are scored differently.  I have no more COLLECTIONS left... charge off yes, but it is 6.3 years old.  it will be off in March !!  :-)

[Anonymous]

and also -- I have EXPERIAN Tracker which gives a daily FICO 8 update.  When my last COLLECTION was removed yesterday, it reacted the same  as myFICO..and when I got the 3 INQ there was no score change!!  so either way something triggers FICO score changes and some things dont -- Im over trying to figure it out.  Well see when I get my new report on 10/5 after UTIL comes down and INQs are removed.  Yes, that CO will help but not until March...so its aging rapidly.  Other than that, just have to wait for 30 days to age.  Hoping to hit 660-680 by New Year

[jamie123]

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@Anonymous wrote:

Jamie - a Charge off is NOT the same as a collection account they are scored differently.  I have no more COLLECTIONS left... charge off yes, but it is 6.3 years old.  it will be off in March !!  :-)

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Well...I do speak from experience and your scores are much too low to have the 30 day late pull your scores down so much.

My wife had a charge off from a bank fall off her reports last May which left her with clean reports. Her scores rose 80 points from 720 to 800. So you can go on thinking that the CO doesn't mean much and be pleasantly surprised in March when it falls off.

[Anonymous]

Oh no I apologize if I misspoke. A charge off DEFINITELY has an effect on scores lol. I am aware. However they are NOT the same as a collection account. Collections are outside agencies assigned a debt and they can kill your score. A charge off comes from an original creditor (in my case First premier) .. Equally as damaging to scores probably but scored slightly differently and put in to a different "bucket" or score card.

I am looking forward to march and I will be trying for an Early deletion in January !!! I am hoping my score booms to 700 or close. We shall see in time. :-). I have tried to GW AND PFD FP bank but they are truly horrid to deal with. I will campaign to prevent anyone from ever using them. So very sad. But onward and upward!!!!

[Revelate]

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@Anonymous wrote:
Oh no I apologize if I misspoke. A charge off DEFINITELY has an effect on scores lol. I am aware. However they are NOT the same as a collection account. Collections are outside agencies assigned a debt and they can kill your score. A charge off comes from an original creditor (in my case First premier) .. Equally as damaging to scores probably but scored slightly differently and put in to a different "bucket" or score card.

I am looking forward to march and I will be trying for an Early deletion in January !!! I am hoping my score booms to 700 or close. We shall see in time. :-). I have tried to GW AND PFD FP bank but they are truly horrid to deal with. I will campaign to prevent anyone from ever using them. So very sad. But onward and upward!!!!

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Maybe; the fact is a dirty bucket is a dirty bucket and that limits your maximum score obtainable.  TBH we really don't know that much on how the dirty scorecards work... the clean scorecards have been teased out somewhat over time where oldest card does make a difference for example, but dirty buckets it's hard to know how it sorts.  In theory payment history like a CO is factored differently, but I doubt a 30/60/90/120/150/x/x/x/CO tradeline would get excluded unlike a random 30 day on a FICO 8 algorithm, and as such until you get clean I would suggest it'll be a bit.

On the flip side, why isn't your score higher?  Your CO is older than my tax lien and my lates... just not enough positive history?  

[Anonymous]

I wish I knew!!! I will say I have a ton of inquiries -- 20 this year but 10 are being deletis d!! Next to that I have a TON of positive history - 26 accounts in excellent standing according to myFico. Even listed as one of the pluses for me. I just don't get it. Has to bet he two charge offs still - thank god one is aging off soon. And if Cap one by the grace of all things holy accepts my GW I'll buy us all a round of drinks !

2 more hurdles .. Once my UTIL is under 10% I expect a huge boom as well. Just waiting for the day my friend .. Disheartened but looking forward

[Anonymous]

Omg Also!!! I just looked -- Capital ones CO reports as closed with $0 whereas FP co Reports as open with $420 balance due and reports EVERY month as a Co!!!!! This has to be the culprit !!!!

[Anonymous]

I wonder if I settled or paid that would even matter .. Being 5-6 months away from bye bye