What the...

[Mutt]

myFico Equifax Score on 3/1/2014 = 678

myFico Experian Score on 3/3/2014 = 640

The only change, I disputed and won/removed a $0 balance Collection Account from 2009 giving me no CA's whatsoever and now...

myFico Equifax Score on 4/9/2014 = 660

myFico Experian Score on 4/9/2014 = 644

Is this the "Bucket/Rung" thing I've read about or did I just make a huge mistake in an attempt to clean my report up?

[user5387]

I believe one difference might be that MyFico has changed EQ scoring models in this time frame.

If a different formula is applied to your report, the results may be higher or lower than what you got previously.

Another issue might be how much you'd expect a 5-year-old derogatory to affect your scores.

[Revelate]

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@user5387 wrote:

I believe one difference might be that MyFico has changed EQ scoring models in this time frame.

If a different formula is applied to your report, the results may be higher or lower than what you got previously.

Another issue might be how much you'd expect a 5-year-old derogatory to affect your scores.

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Probably a mix of both; it really depends what else is in your report which based on your scores is likely still a mixed file like mine, and it certainly appears that FICO 8 doesn't penalize old derogatories as much as '04 did but I have yet to see my EQ '08 score but it worked that way on both TU/EX with a recent tax lien and getting hammered for the recent negative where the EQ '04 score barely hiccuped: I may have lost more points for a recent inquiry than I did for a tax lien, that's a somewhat counter intuitive to me haha.

Possibly a rebucketing event but we're not really certain how that fully works: clean sheets are in their own category compared to mixed or worse files, but it's incredibly hard to say how much a collection vs. a tax lien puts you into the same or different buckets, or what happens if you have both, etc ad naseum.

[Mutt]

user5387 I was unaware of the model change (my fault for not researching enough) but my expectations certainly didn't include a lower score with one agency and a higher score with another from the same source. What are your thoughts on settling a 5 yr old unpaid ?

Good info Rev, I'm a bit mixed as well.

[user5387]

With regard to the scoring model change, I don't know if it has fully kicked in as yet.

If it applies to you, then you'd basically need to do a one-time resetting of your baseline score, and before/after comparisons might not mean very much.

You can find various threads around here that discuss the impact of an old CA, and they tend to indicate that the point value is still pretty big.

Another possibility is that the change to the CA is not yet reflected in your reports and scores.

[Mutt]

Both Ex and Eu no longer show the CA on the reports. Here's my other concern, I have an outstanding balance on a car loan in my name in which the vehicle was repo'd. The divorce decree states that my ex was responsible for the loan but she failed to keep up or notify me before the repo. Loan was opened in 2006 with HSBC and the repo occurred in 2009, the account was transferred to Santander.

The Santander installment account on my EX is listed as "Unpaid balance reported as a loss by credit grantor" Status: as of March 2014, and currently shows 25, 90+ lates and continues to add a new late each month. Past due $2,097.

The Santander installment account on my EU and TU is listed as "Charge-off" Status: as of March 2014, and currently shows 24, 90+ lates and continues to add a new late each month for EU but not TU which shows zero lates. Past due $2,097. EU also lists this account as being owed by three parties (HSBC, HSBC/Scusa, Santander) where EX and TU only list HSBC and Santander.

Santander has sent me a settlement offer for this account and I was wondering what the impact would be if I was either successfull at a PFD, getting the account to show "Paid in Full", or at least "Paid,settled for lesser amount" ? Considering I was in line for a decent interest rate on a new auto loan before I got the CA removed and now a higher rate with the recent 18 point drop with the removal of the CA. My fear is my score will drop even more and leave me driving a car that is no longer worth repairing...car is a ticking timebomb.

[bettercreditguy1]

I would do whatever I could to bring the saga to an end. If I understand correctly, you have a joint loan. The payments on the loan are a joint liability. DIVORCE/separation does NOT release the significant other of the responsibilities. To have it paid off would behove you going forward. The damage has already been done to your Fico Score. The lates will remain for seven years on both reports. Left un addressed and unpaid, the lates will continue to accrue.

[Mutt]

I'm wondering what the impact will be by paying the account off. Will it rekindle an old flame back to its former glory and lower my score? How accurate is the TU simulator? According to it, I stand to increase 10-100 points.