Today, I pulled my wife's credit reports and was surprised to see an account being reported for collections from 1999. The collections amount is $41 and was paid in February of 1999. I'll be sure to dispute this account to get it removed. The interesting thing is that this collections account only appeared on her Equifax report. In comparing the Equifax report with her Experian report they are exactly the same with exception of the collections. Her FICO score with Equifax is 693, while with Experian it is 795. Has anyone seen a small collections account such as this effect a FICO score so much?
It makes no difference on the Amount of the collection Also paid or un paid makes no difference on a collection.
I haven't seen that big of a difference, but I had a CO on TU from '98 and I was sitting at 695. The day it came off, I check my scores again and I was at 753. I got a 58 pt jump just from that CO being gone. It's amazing what getting the very last negative off a CR will do for you.
When EFX removed the last CA on my report, my FICO went up about 60 points or so. Your FICO's should take a big leap with the last removal of a CA account, regardless of the amount.
I got my last derog removed from EQ this week and went from 652 to 692. Previous removals were worth from 3 to 7 points depending on the age of the account. I still have one last derog on EX, which sits at 640. More than 50 points off my other scores. I agree, getting the last derog off gets you a big jump.
I saw one reply say that a paid or unpaid collection was basically the same as far as score. I have 3 old accounts in collections, so unless they would remove them, I have no incentive to pay them? Thanks for the advice. Ron
Depends on the amounts you owe. They could try to get a judgment and garnish your wages it is more than 2k or so. Are they still in SOL? If you try to buy a home they will need to be paid.
The main thing about collections is Has the CA validated.If they haven't The SOL and the $ amount of the debt don't mean anything.. A collecetion is a collection is a collection either paid or unpaid. I will not pay an unproven claim to anyone CA or OC !
Re: Re: Paid collections effect on FICO 2 things: I would add...AND ensure the CA has a right to collect in the state... and.. I had a paid CA recently due to a HIPAA attempt gone wrong..(LOL) and I got a raise in my FICO of...drumroll, please...1 pt! Heck, it could have been from something else but that was the only change I saw...
Re: Re: Re: Paid collections effect on FICO quote: ----------------------------------------- Originally posted by lbrown59 The main thing about collections is Has the CA validated.If they haven't The SOL and the $ amount of the debt don't mean anything.. A collecetion is a collection is a collection either paid or unpaid. I will not pay an unproven claim to anyone CA or OC ! --------------------------------------------------- Can an illegal enterprise create a legal debt????? Does and illegal enterprise have the right to collect a debt????
Re: Re: Re: Paid collections effect on FICO My EQ score was 670 with a satisfied judgement and a paid collection. The judgement came off but my FICO stayed 670. I resolve to get that little bugger off of there in 2004!
