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Two collections deleted through goodwill and score drops?!

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nycfico
Regular Contributor

Two collections deleted through goodwill and score drops?!

I had two collection accounts (one from 2009 and one from 2010) deleted today.  My score promptly dropped from TU 638 to 611.  

 

I don't think it's a rebucketing since I still have two chargeoffs and two tax liens reporting.

 

What the heck?  Collections are about the worst of the 'baddies', right?  I wasn't sure if I was going to get a substantial jump or not, but why would I ever LOSE 27 points?  And this in a month when my utilization fell.

Message 1 of 10
9 REPLIES 9
Revelate
Moderator Emeritus

Re: Two collections deleted through goodwill and score drops?!

What service are you using to track your TU score?

 

Also, while it may not be rebucketing, there are many different dirty buckets, and not having collections and only having tax liens / charge offs is very likely to be a different bucket than having tax lien / charge off / collection on there so it's entirely possible under a FICO algorithm anyway that is what happened.




        
Message 2 of 10
nycfico
Regular Contributor

Re: Two collections deleted through goodwill and score drops?!


@Revelate wrote:

What service are you using to track your TU score?

 

Also, while it may not be rebucketing, there are many different dirty buckets, and not having collections and only having tax liens / charge offs is very likely to be a different bucket than having tax lien / charge off / collection on there so it's entirely possible under a FICO algorithm anyway that is what happened.


I'm using MyFico.  I bought the score today to see what impact having no collections any more would have.

 

Didn't realize that about the buckets.  Hopefully, that's what it is.  Thanks.

Message 3 of 10
tonyjones
Valued Contributor

Re: Two collections deleted through goodwill and score drops?!

Tax Liens / Judgements > Collections / Charge Off, I bet when that Tax Lien falls off you'll see a big increase.

Current Fico Scores: (November 2024)
Message 4 of 10
Revelate
Moderator Emeritus

Re: Two collections deleted through goodwill and score drops?!


@nycfico wrote:

@Revelate wrote:

What service are you using to track your TU score?

 

Also, while it may not be rebucketing, there are many different dirty buckets, and not having collections and only having tax liens / charge offs is very likely to be a different bucket than having tax lien / charge off / collection on there so it's entirely possible under a FICO algorithm anyway that is what happened.


I'm using MyFico.  I bought the score today to see what impact having no collections any more would have.

 

Didn't realize that about the buckets.  Hopefully, that's what it is.  Thanks.


I know it kind of sucks but I'd strongly recommend ignoring the vagaries in scores while you're getting your derogs cleaned up.

 

ANY negative information being removed from your credit report is a good thing, regardless of what the FICO algorithm thinks of it at that point in time.  You're making excellent progress, don't let the FICO Gods get you fustruated and disappointed. 




        
Message 5 of 10
TheFate
Established Contributor

Re: Two collections deleted through goodwill and score drops?!


@Revelate wrote:

@nycfico wrote:

@Revelate wrote:

What service are you using to track your TU score?

 

Also, while it may not be rebucketing, there are many different dirty buckets, and not having collections and only having tax liens / charge offs is very likely to be a different bucket than having tax lien / charge off / collection on there so it's entirely possible under a FICO algorithm anyway that is what happened.


I'm using MyFico.  I bought the score today to see what impact having no collections any more would have.

 

Didn't realize that about the buckets.  Hopefully, that's what it is.  Thanks.


I know it kind of sucks but I'd strongly recommend ignoring the vagaries in scores while you're getting your derogs cleaned up.

 

ANY negative information being removed from your credit report is a good thing, regardless of what the FICO algorithm thinks of it at that point in time.  You're making excellent progress, don't let the FICO Gods get you fustruated and disappointed. 


+1 Worry about whats on your report not what number your score is

Message 6 of 10
nycfico
Regular Contributor

Re: Two collections deleted through goodwill and score drops?!

I know it kind of sucks but I'd strongly recommend ignoring the vagaries in scores while you're getting your derogs cleaned up.

 

ANY negative information being removed from your credit report is a good thing, regardless of what the FICO algorithm thinks of it at that point in time.  You're making excellent progress, don't let the FICO Gods get you fustruated and disappointed. 


Yep, I know you're right and thanks for the encouragement.  I want to get a mortgage as soon as maybe next year (if I can get the lien withdrawn after paying it).  I just keep visualizing the conversation with a loan officer/underwriter and use that as my motivation to go one by one and clean up each ugly mark on my report.  Even though the collections were pretty old (4 and 5 years) and may not be having that signficant effect on my CR compared to some other things, I still view it as two fewer things that I'll need to discuss.

 

I've had 24 negative items removed since January.  For what it's worth, my score has gone from 550's to about 610's in that amount of time, despite the fact that the tax lien was placed in March (I knew it was coming but was trying to delay as long as I could hoping to stave it off but it's there now).

 

The lien is the biggest deal (actually have a state one and an IRS one).  I want to have everything else cleaned up so when that finally comes off my score can skyrocket.

Message 7 of 10
Revelate
Moderator Emeritus

Re: Two collections deleted through goodwill and score drops?!

The IRS liens are easy to get withdrawn once paid under the Fresh Start program: state liens are seriously problematic depending which state you live in.  Some absolutely suck and you're stuck the full 7 years post paid.  I have a dumb CA state tax lien and it's likely going to languish till 2018 unless I get lucky with a flier of a GW letter.  Not holding my breath on that one.




        
Message 8 of 10
nycfico
Regular Contributor

Re: Two collections deleted through goodwill and score drops?!


@Revelate wrote:

The IRS liens are easy to get withdrawn once paid under the Fresh Start program: state liens are seriously problematic depending which state you live in.  Some absolutely suck and you're stuck the full 7 years post paid.  I have a dumb CA state tax lien and it's likely going to languish till 2018 unless I get lucky with a flier of a GW letter.  Not holding my breath on that one.


The state was NY (I live in CT now).  It was for a whopping $458.  I paid it three years ago, and supposedly it comes off after five years.  They actually screwed up and listed the same lien twice.  One of them was immediately deleted when I disputed, the other one I'm sending letters to to see if I might get lucky.

 

I did talk to an attorney and he said to keep disputing it because sometimes NY will just ignore if it was small and if I don't owe them anything else...which I don't.

 

 

Message 9 of 10
CreditGuy03
Established Contributor

Re: Two collections deleted through goodwill and score drops?!

OP What is your AAOA?

 

IMO this is the biggest factor in offsetting rebucketing issues. People with AAOA >15 years arent hit as hard with bad deletes or even inquiries. 

Equifax - 628, Experian -627, Transunion- 654 In the garden until 01/01/2019
Message 10 of 10
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