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Score drop after collection coming off wth?!

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Score drop after collection coming off wth?!

I had 2 collections on my report 1 of which was not mine and the other is an old trash pick up bill I had forgotten about after I moved.

The 1 thay wasn't mine was a bill from verizon for $788. After proving to the collection company that i had AT&T during that time they agreed to remove the collection from my report. The collection came off of my report today with the other collection from my trash pick up still remaining (waiting on pay for delete confirmation letter).

After falling off however my score dropped 25 points! Wth?!? After quite a bit of research the only possible thing I can think of to cause this is maybe rebucketing. Is rebucketing really a thing? Is there any other possible reason my score would drop 25 points.

Only other option I could think about was possibly AAoA. But it didnt drop much. Went from 6 years 7 months to 6 years 2 months. I dont see how that would over power the fact a collection came off!

Any advice or insight to set my mind at ease while trying to rebuild my credit would be greatly appreciated. Thank you!
Message 1 of 13
12 REPLIES 12
Community Leader
Super Contributor

Re: Score drop after collection coming off wth?!


@Ldennis wrote:
I had 2 collections on my report 1 of which was not mine and the other is an old trash pick up bill I had forgotten about after I moved.

The 1 thay wasn't mine was a bill from verizon for $788. After proving to the collection company that i had AT&T during that time they agreed to remove the collection from my report. The collection came off of my report today with the other collection from my trash pick up still remaining (waiting on pay for delete confirmation letter).

After falling off however my score dropped 25 points! Wth?!? After quite a bit of research the only possible thing I can think of to cause this is maybe rebucketing. Is rebucketing really a thing? Is there any other possible reason my score would drop 25 points.

Only other option I could think about was possibly AAoA. But it didnt drop much. Went from 6 years 7 months to 6 years 2 months. I dont see how that would over power the fact a collection came off!

Any advice or insight to set my mind at ease while trying to rebuild my credit would be greatly appreciated. Thank you!

Hi and welcome to the forums @Ldennis 

 

Collection accounts are not included towards AAoA calculations when it comes to Fico scoring. 

Can you please tell us where did you see this score drop? Was it CK? 

Knowing what you use to monitor your scores and report is usually a good starting point in trying to determine what happened 

EX 753 EQ 773 TU 752
Message 2 of 13
New Member

Re: Score drop after collection coming off wth?!

I use experian to monitor. I like the fact that it uses FICO scoring models rather than vantage.
Message 3 of 13
Moderator

Re: Score drop after collection coming off wth?!

Welcome to the board Smiley Happy

 

When you last derog is removed from your CR yes you are rebucketed into the group that has no derogs on file so it can result in a Fico score drop.

"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 4 of 13
Established Contributor

Re: Score drop after collection coming off wth?!


@gdale6 wrote:

Welcome to the board Smiley Happy

 

When you last derog is removed from your CR yes you are rebucketed into the group that has no derogs on file so it can result in a Fico score drop.


Even if we assume that is universally true, that is not the case for the OP since they still have a collection / derog on file.

050719:     
081719:     

A regretful expert. I have repaired before, I will repair again. My current goal is 670 FICO08 across the board by November 2019.
Message 5 of 13
New Member

Re: Score drop after collection coming off wth?!

I do in fact have 1 collection still remaining as well as 2 chargeoffs that will be shown as paid as soon as they update (but that part has not updated yet). I started with 4 collections that weren't connected to the chargeoffs. Every other collection that came off seemed to result in a small increase in my score. This one came off and it decreased.
Message 6 of 13
Established Contributor

Re: Score drop after collection coming off wth?!

In my opinion, it is unlikely that the decrease was related to a bucketing change.  VERY unlikely...

 

Would have to dive in to every detail to start making guesses, but regardless, the LAST collection or charge off to get resolved is the one that matters most, and by a very large margin.

050719:     
081719:     

A regretful expert. I have repaired before, I will repair again. My current goal is 670 FICO08 across the board by November 2019.
Message 7 of 13
Super Contributor

Re: Score drop after collection coming off wth?!

I don't see how rebucketing could be a possiblity here.  The OPs file was (major) dirty both before/after the single collection was removed.

Message 8 of 13
Community Leader
Super Contributor

Re: Score drop after collection coming off wth?!

OP, look over your report and see which ones of your charge offs recently updated. The way first post is worded, makes it appear as if you only had two negatives on your report and one got removed, but that's not the case. Your thread in rebuilding mentions multiple charge offs and repo, so if any of them updated, it could account for the points loss 

EX 753 EQ 773 TU 752
Message 9 of 13
Regular Contributor

Re: Score drop after collection coming off wth?!

My score dropped some years back for the same reason....but shortly over time, the score more than bounced back.  Be patient....

Message 10 of 13
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