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Score dropped 23 pts

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Anonymous
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Score dropped 23 pts

My CR score for both Transunion and Equifax both dropped 36 points after a collection account was removed (about 5 years old) everything else is the exact same. My score was in the upper 600s. It was the only collection account on my CR. Now my derogatory marks category is green, why would this dropped my score instead of raising it? 

Message 1 of 18
17 REPLIES 17
Anonymous
Not applicable

Re: Score dropped 23 pts


@Anonymouswrote:

My CR score for both Transunion and Equifax both dropped 36 points after a collection account was removed (about 5 years old) everything else is the exact same. My score was in the upper 600s. It was the only collection account on my CR. Now my derogatory marks category is green, why would this dropped my score instead of raising it? 


Just by seeing Transunion and Equifax this is telling me you are looking at vantagescores from Credit Karma. They base things on an entirely different system and should be ignored. You probably have a really thin file so the tradeline being taken off probably took your average age of open accounts way down. A metric they use instead of all total accounts. Ignore it and go get your FICO scores instead. 

Message 2 of 18
Anonymous
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Re: Score dropped 23 pts

What kind of account was it? Revolving or installment?  Did you have any other revolving or installment loans?

 

If the account was reponsible for a credit mix, it could have a score drop in the lower 20s.

 

More info might help us help you.

Message 3 of 18
Anonymous
Not applicable

Re: Score dropped 23 pts

We need to know the source of the OPs credit score.  Until then, trying to discuss what it could be more isn't very beneficial.

 

If it's a genuine FICO score, my best guess is that the OP has another major baddie aside from the collection that was removed.  If my assumption is correct, the removal of the collection could result in NO point gain at all, especially if the other major baddie(s) are more recent.  Then it comes down to determining what caused the score drop, likely something like a utilization change. 

 

But, if we're not talking a FICO score, we're just spinning our wheels.

Message 4 of 18
Anonymous
Not applicable

Re: Score dropped 23 pts

It was a medical bill from 2012. I did not dispute it, however I was checking my score yesterday and found that it had been removed. I am shocked that something bad being removed would dropped your score this much, I thought removing something bad helps your score. Everything else is exactly the same. Confusing.

Message 5 of 18
Anonymous
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Re: Score dropped 23 pts

What do you mean by OPs? and other baddies? That was the only bad item on my CR, everything else is in good standing, however I will say that I have added a couple of credit cards to the mix in the last couple of months and this lowered my average credit years but this happened last month and was not changed yesterday, the only difference is the removal of the 2012 medical bill that was in collections. I did not have any credit cards previously and was told to open a couple of accounts to get my revolving credit going.

Message 6 of 18
HeavenOhio
Senior Contributor

Re: Score dropped 23 pts

OP = "original poster" = you. Smiley Happy

 

Baddie = derogatory mark, i.e. what you refer to as a "bad item."

Message 7 of 18
Anonymous
Not applicable

Re: Score dropped 23 pts

The OP still needs to tell us where he's getting his score from, as until knowing that there's really nothing more that can be commented on.

Message 8 of 18
Anonymous
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Re: Score dropped 23 pts

Sorry, I didn't realize....Credit Karma, both report scores on this app was dropped. I didn't realize this wasn't close to being acurate. Since I got my credit cards, my score has risen from middle 500s to 660 until yesterday. Should I be using something else?

Message 9 of 18
Anonymous
Not applicable

Re: Score dropped 23 pts

Yes, you need a source that provides you with a FICO score rather than VantageScores (that Credit Karma uses).

 

The quick and easiest is if you go sign up at creditscorecard.com - it's free and you'll have your EX FICO 08 score in a matter of minutes.  If you go ahead and do that, please report back here what that score is ASAP.  That score will update every 30 days for you and is a far better indicator of what potential lenders would see (and care about) if they were to pull your report/score.

 

If you're willing to spend a dollar, you can do a $1 trial membership at Credit Check Total.  Simply cancel it right after you start the trial.  With that you'll be provided with your three FICO 08 scores (the EX one will exactly match what your creditscorecard.com provided score is).  CCT is a great tool to grab those 3 scores as needed.  Basically any time you know a big change is about to happen with your credit profile, pull your scores from CCT before/after and you can see what type of impact it had on your scores.

Message 10 of 18
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