more on credit scores

Discussion in 'Credit Talk' started by cjd, Nov 1, 2001.

  1. cjd

    cjd Active Member

    Just thought I would offer one piece of counter evidence to the idea that paid collections are no better than unpaid collections.

    I paid a collection in exchange for removal, of course it's still not removed but was updated as paid (and 120+ days late status, it boggles the mind). However, with just 1 month of aging plus the paid collection my score went from ~615 to 647. One more piece of info, the last activity on the account was in 1995 so it is a old account.

    But at least for old accounts a paid collection is significantly better than a unpaid collection. And hopefully upon deletion it will get even better.

  2. roni

    roni Well-Known Member

    If you're looking for a mortgage, most companies are going to require you've paid all balances. I think the confusion is how it effects your FICO score, but thanks for the info!
  3. bfllover

    bfllover Well-Known Member

    to Bkev

    you mean to get a mortgage they will require even credit and dept store balances to 0????
  4. roni

    roni Well-Known Member

    Re: to Bkev

    To be approved, most mortgage lendors, banks or agents, will require that all collection accounts be paid. I'm sure that you can find some that will underwrite the loan with plenty of support for your claim, but it's an automatic turndown for most.

    That's any type of collection account... credit cards, auto, retail... Collection account, not credit account.
  5. lbrown59

    lbrown59 Well-Known Member

    Re: to Bkev

    Don't this violate consumer laws?
  6. lbrown59

    lbrown59 Well-Known Member

    Re: to Bkev

    Isn't that against credit laws?
  7. roni

    roni Well-Known Member

    Re: to Bkev

    No. What law do you think it breaks?
  8. lbrown59

    lbrown59 Well-Known Member

    What gives them the right to demand you pay bills you don't 0we?
  9. bbauer

    bbauer Banned

    Because it's my ball, that's why!

    What gives them the right to force you to pay bills you don't owe?

    I guess one humorous example might be the old joke from the Kennedy years.

    John and Bobby were having supper at the Whitehouse and Bobby asked John why it is that when they play touch football on the whitehouse lawn they always had to play by John's rules whereupon John was supposed to have replied, "Because it's my ball, that's why."
  10. Hal

    Hal Well-Known Member

    When a lender underwrites a mortgage their chief concern is that no other parties have a reason to place a lien against the property - this is to protect the interest of the lender. As almost all mortgages are sold by the lender within a year of the closing date, they also do not want any hindrances to the sale of the mortgage to another company.

    This is the reason they usually require all charged off and/or past due accounts be paid. It by default becomes important that you agressively contest any items on your credit profile that are not yours - before applying. A good mortgage lender will review your credit profile and tell you which items are going to be a problem in getting the loan closed.

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