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Score drop after collection coming off wth?!

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Senior Contributor

Re: Score drop after collection coming off wth?!

Welcome.

Yeah I’ll bet @Remedios is exactly right, you said you just paid off some chargeoffs, so what happened is they were appearing old to the algorithm, in other words they weren’t being updated monthly.

But, now that you paid them, thinking you were doing a good thing, they got updated and now they appear current, so the algorithm penalizes you more because now you have a CURRENT charge off, as opposed to a OLD chargeoff.

Welcome to the world unintended consequences.
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.



RIP:






Scores updated May 2020, unless otherwise noted. 5 revolvers reporting a balance, where it's normally 1, but took an HP on EX.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 11 of 13
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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!

I don't think the removal of the collection caused the score drop.

 

 


Total revolving limits 648500 (572500 reporting) FICO 8 EQ 725 TU 752 EX 732

Message 12 of 13
Highlighted
Senior Contributor

Re: Score drop after collection coming off wth?!

And what would your guess be, SJ?
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.



RIP:






Scores updated May 2020, unless otherwise noted. 5 revolvers reporting a balance, where it's normally 1, but took an HP on EX.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 13 of 13
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