@Anonymous wrote:
Did that one collection have such a big impact because I only have the one credit card and nothing else reporting?
Other accounts don't really matter. Derogs tend to have a major impact and hold one's scores down. That's why we always recommend addressing them first. That's also why each needs to do whatever it takes to avoid them.
@Anonymous wrote:
I just find it crazy that it could have that much of an effect, and wondered why.
Why do you think it's crazy? Think of it from a lender's perspective. Let's say you have two friends asking to borrow money. One has a spotless track record of repaying you. The other does not. Based on that alone who are you more likely to lend to? It shouldn't be surprising why derogs are a major red flag to creditors.
It takes a LOT to end up with a collection.
@Anonymous wrote:
On the other hand I was still a little mad that a single collection for $54 could ding my score that much.
The amount does not matter. A collection is a collection. Whether it's $54, $540, $5,400, etc you can't let your accounts slide to the point of being late, on collection, charged off, etc. You must have a 100% on time Payment History. If you haven't already read this then start here:
http://www.myfico.com/crediteducation/whatsinyourscore.aspx
