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Score Drops 34 points after Collection Drop Off!!!

Regular Contributor

Score Drops 34 points after Collection Drop Off!!!

So.... Craziest thing happened! Any ideas if it will bounce back? An old collection (7 years) was removed from my report today. I use Credit Check Total and my Experian  8 score dropped 34 points. The only other change to my report was my credit card debt went up $150 but the Utilization rate stayed the same at 35%. I haven't had any new inquiries for 6 months and my score has basically stayed the same for 5 months. Specifics are below.

 

 
Yesterday info: 
 
Revolving Debt: $22,597.00
Revolving Credit Limit: $64,055.00
Revolving Credit Usage: 35%
Real Estate Debt: $0.00
Installment Debt: $15,630.00
Total Debt: $39,474.00
Accounts In Collections: 1
Oldest Account: 16.8 year(s)
Average Account Age: 4.5 year(s)
 
 
Today info:
Revolving Debt: $22,449.00
Revolving Credit Limit: $64,055.00
Revolving Credit Usage: 35%
Real Estate Debt: $0.00
Installment Debt: $15,630.00
Total Debt: $38,079.00
Accounts In Collections: 0
Oldest Account: 16.8 year(s)
Average Account Age: 4.5 year(s)
Message 1 of 9
8 REPLIES
Moderator

Re: Score Drops 34 points after Collection Drop Off!!!

You have been rebucketed into the group of people that have no derogs on file. Overtime you will recover those points and the fastest way to do so now is to pay down your utilization.


"If there's a lack of money in your life, understand that feeling worried, envious, jealous, disappointed, discouraged, doubtful or fearful about money can never bring more money to you, because those feelings come from a lack of gratitude for the money you have."

"Reactions are powerful creators because they contain every element needed to manifest—they're a combination of thought, belief, and feeling in action. Positive reactions create more positive things, and negative reactions create more negative things. If you can respond to negative situations calmly and lightly, instead of with emotional turbulence, what happens next in your life will be so much better."

- Rhonda Byrne
Message 2 of 9
Frequent Contributor

Re: Score Drops 34 points after Collection Drop Off!!!

Wow. No sense in the bank losing an extra point on your next app, huh? Ridiculous.

FICO 8:  EQ:687  TU:728  EX:735
Message 3 of 9
Highlighted
Moderator

Re: Score Drops 34 points after Collection Drop Off!!!

That's a bit strange; is your file utterly clean now other than your revolving debt and possible installment debt ratio?

 

4 years AAOA it's not hard to hit an 800 on a clean file if prettied up on FICO 8, I certainly wouldn't expect a score in the mid 600's as your signature suggests?

 

I'd still focus on paying down the revolving debt anyway, unless that's sitting on 0% offers that's more than $4K in interest a year assuming typical compound APR's, yikes!

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 741, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (1/1/18)
Goal Score:    EQ 5 771, TU 4 750, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (01/01/19)


Take the myFICO Fitness Challenge
Message 4 of 9
Established Contributor

Re: Score Drops 34 points after Collection Drop Off!!!


gdale6 wrote:

You have been rebucketed into the group of people that have no derogs on file. Overtime you will recover those points and the fastest way to do so now is to pay down your utilization.


+1000

Message 5 of 9
Regular Contributor

Re: Score Drops 34 points after Collection Drop Off!!!

How can rebucketing drop you THAT much? The buckets have that much overlap? It would seem to me that an entire bucket would not be much bigger than a 34 point spread! Granted, I can see the current bucket penalizing more for 35% utilization but that seems a little off to me. :/

Message 6 of 9
Moderator

Re: Score Drops 34 points after Collection Drop Off!!!


CaptainKangaroo wrote:

How can rebucketing drop you THAT much? The buckets have that much overlap? It would seem to me that an entire bucket would not be much bigger than a 34 point spread! Granted, I can see the current bucket penalizing more for 35% utilization but that seems a little off to me. :/


Some buckets are likely 100 or perhaps even 150+ points; it's not a partitioned spectrum, there is a tremendous amount of overlap.

 

Starting Score: EQ 5 561, TU 98 567, EX 2 599 (12/30/11)
Current Score: EQ 5 771, TU 4 741, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (1/1/18)
Goal Score:    EQ 5 771, TU 4 750, EX 2 776, EQ 8 809, TU 8 774, EX 8 822 (01/01/19)


Take the myFICO Fitness Challenge
Message 7 of 9
Regular Contributor

Re: Score Drops 34 points after Collection Drop Off!!!

So do we have a thread where we have figured the buckets out? All I know is, I think I am languishing near the top of one now.
Message 8 of 9
Established Contributor

Re: Score Drops 34 points after Collection Drop Off!!!


CaptainKangaroo wrote:
So do we have a thread where we have figured the buckets out? All I know is, I think I am languishing near the top of one now.

Just do a search on these boards, as there has been much research on the buckets.  Hope this helps.

Goal: 700's by 11/1/2015 (all baddies will be gone)
Message 9 of 9