Credit fix report scoring confusion baffles two Credit-Success inner-circle members who witness big score drops before discovering the secret to bouncing back from personal financial tragedy.
Yes, you absolutely must understand this strange reality about the FICO scoring algorithm.
Both Nicky and MaryAnn suffered bad credit tragedies from which they had worked to recover.
But then, both checked their scores one day, only to witness significant point drops…for no apparent reason.
What the heck happened?
Right now, you will discover exactly what had happened to Nicky and MaryAnn, so that when your scores drop you will not hyper-ventilate.
Nicky adds, “I had a 13 bankruptcy about ten years ago. From that BK, my scores dropped through the floor to the low 400s.”
“With your help, however, I’ve gotten my scores back into the 700s,” Nicky states, “much faster than I had thought possible.’
“But then I checked my reports the other day and I couldn’t believe my scores have dropped 78 points. Please help. Why is this happening?”
Nicky, an inner circle subscriber, is now aware of “score cards” & how to move beyond these score cards. Click “Read More” to discover why Nicky’s and MaryAnn’s scores suddenly dropped and how they recovered those “lost” points.
HOW TO KEEP YOUR SCORES MOVING UP, NOT DOWN
As I explained to Nicky, she “graduated” from one “class” to a different class, without even knowing it.
No letter; no ceremony. Nothing.
Here’s exactly what I mean: with a bankruptcy on your report, you are grouped on a score card with other people who have had a bankruptcy…you’re in the same “class.”
During the ten years, Nicky followed my checklist (a little) to rebuild her good credit history. In turn, she rose to the top of her class…pretty quickly.
Her time in the bankruptcy class now has ended. She’s now graduated into a different class (of people) with a stronger credit history and no bankruptcy.
Suddenly, Nicky’s credit history doesn’t look as good, and her scores have dropped to reflect this newer class. This is why I kept emphasizing to Nicky and others the importance of adding good credit and pampering it.
The transition from “class” to “class” happens…it’s unavoidable. That’s why it’s CRITICAL to rebuild a credit history quickly, following a financial tragedy (e.g. bankruptcy).
A similar drop shocked MaryAnn Connors, who had a whopping $35,000 of credit card debt and a 716 middle credit score. She paid down her card debt (that’s good!) by $12,000 and her middle score jumped to 734.
A few weeks later, however, her score dropped to 695 (-39 points).
Screech! This is what happens. These big swings often point to a delinquency or a bankruptcy dropping off your credit reports. You see, this is one big reason for not thinking credit repair is all about deletions.
Let me repeat, credit repair is much more than scoring deletions.
When MaryAnn’s recently opened account had aged enough to take her out of this scoring group and put her into one with consumers who had not opened any accounts recently, her score dropped.
A few weeks later, MaryAnn emailed me, breathing normally now that her scores had balanced out. This is normal. Don’t ever forget, your scores are ever-changing…they’re dynamic.
It’s not just what you do that impacts your scores; it’s time that impacts your scores as well.
ACTION ITEM: Follow the exact action plan set out in my videos and boo The Busy Person’s Credit Makeover for adding good credit while fixing the bad credit. Absolutely, add good credit and pamper it during the rebuild stage. What question do you have about “score cards?”
Credit fix report confusion need not shock or anger you. These score gyrations are a normal reaction to graduating from “class” to “class.” You need to factor this reality into your credit repair strategy. Yep, there’s that word “strategy” again. 
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{ 2 comments… read them below or add one }
Thanks for taking a moment, Jason, to leave a comment.
Mike
Excellent Blog. I’ve been reading along and just wanted to say hi. I will be reading more of your posts in the future.
- Jason.