Possible Rebucketing?

[MattH]

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@haulingthescoreup wrote:
You probably will, but your score may very well go up instead of down, if you can get the util down.

Rebucketing doesn't automatically result in a score loss. It all depends on how you compare with your new credit peers.

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And even if rebucketing does result in a short-term drop, it has the potential for going substantially higher over the longer term.  When I got to college at first everything seemed more challenging because my classmates were all from the upper half of the high school population, but soon I got used to the higher level of my peers.  Same with graduate school, where my peers had all done well in college.

[Lucid08]

After some more research about this I am still left a little perplexed.

If the amount of my drop is indicative of a new bucket, that means that the weighting on the negative listed items changed to where I am being penalized more for each item....right?

On my previous scorepower report, the simulation using the score simulator put my FICO score at above 700 if I brought my utilization to 0%. Using the new score from yesterdays scorepower report the best I could hope for is only a 629 if I brought my utilization to 0% in this new bucket. I was hit for 56 points, from a 605 to a 549 when my only derog aged off....with everything else being the same...same util percentage..ect. A 549 seems kind of harsh for someone with no lates, no derogs and 18 months of pristine payment history.

How is it possible for a person to have a higher score with a negative item, yet lower scores once the negative item ages off?

This is the part that I'm having trouble wrapping my head around.

::Edited for clarity.

Message Edited by Lucid08 on 05-04-2009 07:12 AM

[Anonymous]

It is not a "penalty" per se.  It is a score, which is based upon you being compared to others.  When you move to a new bucket because of improved credit (this could be removal of derog or just aging), you generally will be "bottom of the bucket" at first.

FICO is not a linear progression, nor is it a score similar to "scoring" in a competive sport or game which can only increase with performance.  The score is more accurately described as a scale of comparison to other credit data.  It is you "keeping up with the Jones'" in a manner of speaking.

I posted previously on the "bucketing" factor.  Maybe it could be of use to you for clarification:

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=128972#M128972

Message Edited by txjohn on 05-04-2009 07:33 AM

[Anonymous]

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@Lucid08 wrote:

After some more research about this I am still left a little perplexed.

If the amount of my drop is indicative of a new bucket, that means that the weighting on the negative listed items changed to where I am being penalized more for each item....right?

On my previous scorepower report, the simulation using the score simulator put my FICO score at above 700 if I brought my utilization to 0%. Using the new score from yesterdays scorepower report the best I could hope for is only a 629 if I brought my utilization to 0% in this new bucket. I was hit for 56 points, from a 605 to a 549 when my only derog aged off....with everything else being the same...same util percentage..ect. A 549 seems kind of harsh for someone with no lates, no derogs and 18 months of pristine payment history.

How is it possible for a person to have a higher score with a negative item, yet lower scores once the negative item ages off?

This is the part that I'm having trouble wrapping my head around.

::Edited for clarity.

Message Edited by Lucid08 on 05-04-2009 07:12 AM

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Just wondering...Maybe you haven't been "re-bucketed" at all. Maybe your 56 point drop had more to do with your oldest account aging off of your reports. Even though it was a negative the age was still adding to your AAofAs. Are all of your accounts now less than 2 years old?

[PayingTheBills]

collection accounts are not included in your AAoA