Reader mail: How does removing a collection or a bankruptcy bring down the credit scores?
How does removing a collection or a bankruptcy bring down the credit scores?
Removing a collection will NOT bring down the FICO scores.
ALL collections reported as such (not tradelines) SHOULD be deleted. However, removing the bankruptcy often lowers FICO scores when you still have derogatory accounts reported.
That’s because the FICO scoring models (about 10 different formulas) will rate derogatory accounts less severely when you also have the public record bankruptcy reported.
And that’s why I’ve seen FICO scores OVER 720 frequently WITH the bankruptcy public record AND with many correctly reported discharged accounts.
And of course you’re dead meat if you submit false disputes to get the bk deletion (as the credit repair companies do), then an old discharged account is reported incorrectly, your score goes to 590 and what are you going to do?
You just LIED to bureaus about the bk. Your FALSE disputes and in the case of credit repair company disputes MORONIC letters are scanned and stored by the credit bureaus for MANY years.
