Negative Mark Dropped Off and Credit Score Dropped

[Anonymous]

So a 5.5 year old car repo of about $10,700 just dropped off my credit report. This brought down my outstanding debt to less then $4000. You would think my credit score would skyrocket after this considering that 3/4 of my debt just disappeared. But my score went down by 21 points. Why is that?

[AllZero]

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@Anonymous wrote:

So a 5.5 year old car repo of about $10,700 just dropped off my credit report. This brought down my outstanding debt to less then $4000. You would think my credit score would skyrocket after this considering that 3/4 of my debt just disappeared. But my score went down by 21 points. Why is that?

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Insufficient data to answer your question.

What CMS Credit Monitoring Service are you using? Is it based on FICO or VantageScore?

[Anonymous]

+1 to what @AllZero  asked. Was this a Vantage score (like from Credit Karma or other "free" sites) or FICO score?

SO had his repo/CO go from having a balance that updated monthly to $0 in July and has not updated since, but it dropped his FICO scores. It is still reporting, but very disappointing that going from $1500 to $0 cost him points.

We are just hanging in there until it ages off in the next 6 months.

SO also had 8 accounts removed (exactly half of his derog TLs) worth about $40k+ (about 75% of his total debt) and he barely got +0pts to +9 pts from it while I had 2 accounts removed (less than 10% of my derog TLs) worth about $25k (about 15% of my total debt) and saw +31 pts from it, so who know entirely how these things are determined!

Also, if this was your only derogatory on your CR, it likely made you switch scorecards and that can in fact lower your FICO score, too.

Good luck!

[Anonymous]

@AllZero 

On Credit Karma, it shows no change

On Experian it shows an increase

On NerdWallet and WalletHub it shows a decrease of 21 points.

[Anonymous]

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@Anonymous wrote:

On Credit Karma, it shows no change

On Experience it shows an increase

On NerdWallet and WalletHub it shows a decrease of 21 points.

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CK and WH provide Vantagescores; they are not Fico.  I'm not failiar with NW, but if that shows the same change as WH I would say they are TU VS3 as well. 

I think you mean Experian above and if so, they provide you with a Fico score... likely EX F8.  You saw an increase there, which means that the change likely impacted your Fico scores in a positive way.  That's all you really need to consider, since the majority of lenders use Fico scores.  What sort of gain did you see on that Fico score?

[SouthJamaica]

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@Anonymous wrote:

@AllZero 

On Credit Karma, it shows no change

On Experian it shows an increase

On NerdWallet and WalletHub it shows a decrease of 21 points.

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1. As @Anonymous pointed out, Credit Karma, Nerdwallet, and Wallet Hub provide Vantage scores. Therefore they are meaningless for our purposes.

2. Your Experian score is probably a FICO score, and it increased, which is what you expected. So there you have it.

[Anonymous]

@Anonymous It seems to have gone up about 25 points.

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@Anonymous wrote:

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@Anonymous wrote:

On Credit Karma, it shows no change

On Experience it shows an increase

On NerdWallet and WalletHub it shows a decrease of 21 points.

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CK and WH provide Vantagescores; they are not Fico.  I'm not failiar with NW, but if that shows the same change as WH I would say they are TU VS3 as well. 

I think you mean Experian above and if so, they provide you with a Fico score... likely EX F8.  You saw an increase there, which means that the change likely impacted your Fico scores in a positive way.  That's all you really need to consider, since the majority of lenders use Fico scores.  What sort of gain did you see on that Fico score?

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It seems to have gone up by about 25points.

[Anonymous]

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@Anonymous wrote:

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It seems to have gone up by about 25points.

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That's great.  +25 on a Fico score beats minus anything on a non-Fico score.

[SouthJamaica]

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@Anonymous wrote:

@Anonymous It seems to have gone up about 25 points.

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@Anonymous wrote:

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@Anonymous wrote:

On Credit Karma, it shows no change

On Experience it shows an increase

On NerdWallet and WalletHub it shows a decrease of 21 points.

---

CK and WH provide Vantagescores; they are not Fico.  I'm not failiar with NW, but if that shows the same change as WH I would say they are TU VS3 as well. 

I think you mean Experian above and if so, they provide you with a Fico score... likely EX F8.  You saw an increase there, which means that the change likely impacted your Fico scores in a positive way.  That's all you really need to consider, since the majority of lenders use Fico scores.  What sort of gain did you see on that Fico score?

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It seems to have gone up by about 25points.

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So the headline for this thread should read:

"Negative Mark Dropped Off --> Vantage down, FICO up"

[Anonymous]

Agreed above, as the Fico score change is the most useful/meaningful piece of data.