bucket theory

[CreditDrama85]

i was wondering if anyone has seen their score INCREASE when a major derog like tax lien or judgment has hit their report. how much was the increase or did you score stay the same?

[smallfry]

Sounds impossible.

[Anonymous]

I cannot imagine how a public record would ever improve a score, EXCEPT to generate a score when no score was previously available.

So, in that case, you essentially went from zero (no score) to 400-500 range.

But other than that, how could it help?  It won't improve age.  It is derog.  It doesn't help mix or utilization, payment history, etc.

Did you see a score increase?  If so, please do tell, that I want to hear about?

[bobtail]

On the flip side, a paid judgment is my only baddie left.  If I have it vacated, will I get rebucketed and see a score decrease. Credit file thin only one TL open Orchard 320CL.  Mortgage that was 120+ late, now is paid in full, and Master Card from 1992, closed and paid satisfactorily. Oldest account 18 years. Average account age is 7 years.

EQ 700

TU  711

EX fako 731

Message Edited by bobtail on 08-02-2009 06:27 AM

[smallfry]

Clean reports trump scores anyday.

[CreditDrama85]

this is a good example, bobtail has a paid judgment and a 700 fico. if the judgment is vacated the fico score probably will go down if the bucket theory is true.

[bobtail]

Opinions?  I need to purchase a car.  Should I use current report with 700 score and paid (2004) judgment  or have judgment vacated with unknown score.  Judgment is $765, and Pro SE case, they will not contest.

EQ 700

TU 711

EX fako 731- no baddies reported ( judgment not on EX)

[smallfry]

---

@bobtail wrote:

Opinions?  I need to purchase a car.  Should I use current report with 700 score and paid (2004) judgment  or have judgment vacated with unknown score.  Judgment is $765, and Pro SE case, they will not contest.

EQ 700

TU 711

EX fako 731- no baddies reported ( judgment not on EX)

---

As long as the TL being dropped doesn't decrease your AAofA your scores should go up. Have you run all the Estimators and Simulators? For a car loan I would go ahead and just have it deleted if that is what you are talking about. Are you talking full deletion here?

[CreditDrama85]

the amount doesnt matter. IMO i think you should get it vacated after the purchase. i think your score will drop once it is vacated.

please let us know though. good luck!

[Anonymous]

Unless you have other derogs on your file, I predict your score would increase if you have the judgement removed from CR.

Regardless, even if your score dropped 5 to 15 points, a 685 to 695 with NO derogs is a better score than 700 with a major derog.

An auto loan won't be like a CC.  It will be reviewed.  There will be income verification.  And a clean report is better.  The derog does nothing to help your application....nothing, nothing, nothing.

It does not ad age.  It doesn't help uti.  It doesn't help mix.  It doesn't help pay history (opposite in fact).

Have it removed.  If you score moves down, it will be minimal, harmless and recover rather quickly.

EXAMPLE:  My daughter had only 3 TL's (all AU accounts).  Her FICO was in the 780's.  Thin file.  She is only 21 years old.  The AU's were 3 years, 3 years and new....her AAoA was only 2 years.

Don't let FICO alone be your deciding factor.  Clean reports and corresponding scores are better.  Now if this was an old account with 30 day late in 2004, then I would say leave it alone....it's helping your AAoA.  But not so here.

My opinion, though.  Nobody can guarantee anything.

USE THE FICO ESTIMATOR LINK IN MY SIG LINE TO RUN YOUR OWN SIMULATIONS.

Message Edited by txjohn on 08-02-2009 08:10 AM