Old, bad account drops off, score drops?

_John_Doe · ‎07-07-2015

An old bad HELOC account, courtesy of the fine people of Countrywide, has dropped off my Equifax report resulting in 12 point drop?? The only other changes were one inquiry fell off and the account balance on my auto loan dropped since I pay it monthly.

Why would and old, bad account falling off be a bad thing?

Starting Score: 580
Current Score: EQ 709 EXP 702 TU 700
Goal Score: 750

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Anonymous · ‎07-07-2015

Since it was old it probably wasn't dragging your score down any longer. And even as a neg it could have dropped your Average Age of Account.

NRB525 · ‎07-08-2015

A bad HELOC still has payment history, until it drops away completely. Then you would lose the payment history.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765