Negative Items dropping off

[Anonymous]

I had a bad credit history that with the grace of God, and my wife, has finally come under control. Most of the deliquent items have dropped off, and in November of this year my last remaining bad marks will drop off. They are from 6 students loans that all will be gone in Novemeber. My question is, will my fico score rise dramatically since all I will have a clean history? I know the older an item is the less it affects your score, I just didnt know if even having an item is going to affect it.

Thanks

Stephen

[Anonymous]

There are two opposing forces here: the lift you're going to get from the negatives falling off, and the drop you may suffer if you are rebucketed for having a CR with no derogs.

In the long run, your score has nowhere to go but up. In the short run, it may bounce around a bit or even take a modest hit.

[Anonymous]

What do you mean "Rebucketed" for having no derogs?? How can I drop if my record is getting cleaner?

Stephen

[Anonymous]

It's one of the complexities of credit scoring...there are different "buckets," kind of like handicapping in golf. If you have derogatories on your credit report, you get graded by a softer standard than if you don't. Once you get rid of all your derogs, you get graded "harder."

That's the bad news. The good news is that a more rigorous "bucket" has a higher potential for score growth than a less rigorous bucket--even if you take an initial 20-point clipping for going into the harder bucket. You might lose those points to start with, but each month you'll gain more points.

[Anonymous]

Is that kind of like compalining taht you are in a higher tax bracket? You may be paying more taxes, but hell, you are making more money

Stephen