I recently had a collection account posted to my CRs from something that I thought I paid off almost 6 years back. I am actively disputing this collection activity both with the agency as well the 3 credit bureaus as I am int he market to buy a home. I am hoping that will be get taken off with the level of documentation I have provided and wanted to know to what level my score would increase. Currently the 3 scores are 620, 634 and 650. This is the only derogatory information in my CRs. My DTI is around 25%
Depending on your overall credit picture, a six year old collection drop could actually decrease your score in the short term. The important thing is that it is gone and will no longer hinder your score from increasing over the long term.