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New Member
cimbrone
Posts: 19
Registered: ‎09-18-2012

FICO 8 - Medical Collection Under $100?

My husband's credit scores range from 677-698. The ONLY baddie on his report is a $55 medical collection. We already have a deletion letter from the collections agency and are working on getting it deleted via a Rapid Rescore. Right now it is showing up on some of the reports as PIF and others not paid at all. Once we get it deleted, we are hoping for an improvement over 700... over 720 would be ideal. I thought this would do it since he has nothing else bad on his credit reports. He only has one credit card balance (about a UTI of 14% but we just paid it to fall under 9%), car loans, mortgage loan, and student loans. He has no late payments. From what I had been reading just this one collection could have severely dropped his score. Now, I am reading something about FICO 8 and how medical collections under $100 don't affect your score?! I am hoping this isn't the case. We can't figure out why else his score would be this low.

New Member
cimbrone
Posts: 19
Registered: ‎09-18-2012

Re: FICO 8 - Medical Collection Under $100?

I know I am responding to myself, but for anyone who is reading this I've done some research and it seems like the scores I'm seeing on myFICO are still under the old FICO version. I thougth since we were on the myFICO website that they would be using FICO 8, but according to this article, we aren't seeing it yet. So, under the old model, his score should increase with the collection deleted.

http://bucks.blogs.nytimes.com/2012/05/10/is-that-credit-score-a-fico-or-a-fico-8/

 

Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: FICO 8 - Medical Collection Under $100?

[ Edited ]

It is true that FICO08 versions ignore CAs under $100. However, you can't pull that version from anywhere (except for Wal-Mart's free FICO) and lenders aren't using it either. So if you pulled from myFICO or your lender pulled your scores, they are using an older version which still includes all collections.

 

 

ETA....foiled again by slow typing skills.

Moderator
Revelate
Posts: 8,161
Registered: ‎12-30-2011

Re: FICO 8 - Medical Collection Under $100?


llecs wrote:

It is true that FICO08 versions ignore CAs under $100. However, you can't pull that version from anywhere (except for Wal-Mart's free FICO) and lenders aren't using it either. So if you pulled from myFICO or your lender pulled your scores, they are using an older version which still includes all collections.

 

 

ETA....foiled again by slow typing skills.


I think several of the major credit card issuers have moved to the FICO '08 bankcard score have they not?  Been one or two posts confirming that from a denial letter even, and we've seen substantial deviations from myfico scores and tri-pull mortgage scores from various credit card issuers.  Admittedly though, FICO '04 is the most common model if for no other reason than mortgage applications will continue to use it until the GSE's state otherwise.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 703, TU 708, EX 702* (05/30/14, EX older)
Goal Score: 700 in all three (01/01/15)


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Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: FICO 8 - Medical Collection Under $100?

I have no doubt that there may be some out there using FICO08. Lenders aren't putting the FICO version on their letters so much of what is posted is speculative, IMO. The only way to verify is using the Classic TU08 via Wal-Mart. But I'm sure there are CC issuers out there somewhere using FICO08.

New Member
cimbrone
Posts: 19
Registered: ‎09-18-2012

Re: FICO 8 - Medical Collection Under $100?

Thanks! I wish there were mortgage lenders using it. A $55 medical collection for a late night trip to an urgent care clinic for our young daughter could possibly be in the way of our dream house on an otherwise great record! Student loans, car payments, mortgages, credit cards, etc. no problems. Just one stupid $55 missed bill (which we have a deletion letter for). Argh. This is such a helpless feeling. :smileysad:


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