JemiBlue wrote:
In general, when does a collections item begin to matter less as far as your FICO score is concerned? I have read that paying off some of them has little or no benefit. Could someone please explain this? Thanks in advance.
I THINK they start hurting less after 2 years BUT most lenders will make you pay them off first before lending you money (auto loans and mortgages) CCC may refuse credit at all.
A paid collection hurts as much as unpaid (unless old) as far as scores go. That is why advice is usuall given to DV first & then PFD. You want them OFF your CR!
By filing a simple dispute with a CA can bring scores down as they are then updated. After awhile a CA may stop updating.This is in your favor.
A collection when new may drop your scores,say 50 points. Even if you paid it the nexd day, you might only see a 5 point raise in scores.
Scores go down faster then they come up!!
