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Score drop after collection coming off wth?!

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Valued 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.
New:
Under Recon:Should I?




Installment loan reported this month,so technically, I'm at 2 months, but AoYA points were NOT reset. When new CCs hit and it is reset, I'll put the number it is.+0,+2,+2(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated AUG 4, '19. Since then, 4 HP dings to add; will update again.
Message 11 of 13
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.

 

 


7/31 FICO 8: EQ 751 TU 781 EX 748 Total revolving limits 713500 (592500 reporting)
Message 12 of 13
Valued Contributor

Re: Score drop after collection coming off wth?!

And what would your guess be, SJ?
New:
Under Recon:Should I?




Installment loan reported this month,so technically, I'm at 2 months, but AoYA points were NOT reset. When new CCs hit and it is reset, I'll put the number it is.+0,+2,+2(Forgive typos, mobile.)(Everything said is Just IMHO.)
Scores updated AUG 4, '19. Since then, 4 HP dings to add; will update again.
Message 13 of 13
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