Collection Account

[mscallis1]

Hello everyone,

I have a 631 equifax fico and I have one medical collection report of 320.00 and I have went through every step necessary to try to get it deleted as well as ask for a payment for deletion but still to no prevail this company will not delete this mark. I was wondering if I go ahead a pay it in full and its listed as paid will it make my credit score drop. Should i pay it or not. I know the moral thing is to pay it but I dont want my credit scre to drop.

[Tuscani]

I wouldn't pay it in terms of hoping for a score increase. Sure it will look better in manual review, but that's it. Did you send an actually PFD letter? Be persistent.

Paying could actually hurt you.. I know silly.. Why? Because it would change the tradeline to appear more recent, which would make it look like a "new" collection. The trigger is the "DOLA" combined with ANY field in the TL that indicates derogatory status. When a derog TL is updated (for any reason, including dispute or payment) it triggers deductions in the "history" category, which is the largest chunk (35%) of the scoring pie.  

[Anonymous]

I had two medical collections from a hospital but a collection agency was reporting on my credit report. I contacted the hospital and fortunately, they agreed to a reduced payment. After I paid those bills, I disputed the collection accounts with the CRA. Since they didn't have the accounts any longer, they had to remove the collection account from my credit report.

Have you tried paying the original creditor?

[wmcodywilson]

---

@Tuscani wrote:

I wouldn't pay it in terms of hoping for a score increase. Sure it will look better in manual review, but that's it. Did you send an actually PFD letter? Be persistent.

Paying could actually hurt you.. I know silly.. Why? Because it would change the tradeline to appear more recent, which would make it look like a "new" collection. The trigger is the "DOLA" combined with ANY field in the TL that indicates derogatory status. When a derog TL is updated (for any reason, including dispute or payment) it triggers deductions in the "history" category, which is the largest chunk (35%) of the scoring pie.  

---

Hmph. This makes a lot of sense now. I just had my score decrease about 15 points. I just had a collections report paid.

[golo]

It doesn't make any sense,i frankly think is bs,but who i am? you know,they have the hot pan from the handle....

[RobertEG]

I agree.  It makes no sense.

What is the basis for stating that a collection is scored based on a DOLA as opposed to its DOFD?

Or for that matter, that the scoring of any other adverse item is updated based on events not related to its date of occurence?

Does it also apply to monthly delinquencies, public records, etc? Or is it somehow reserved only for collections?

Just as the CR exclusion period is based only the date of occurence of an adverse item (with the exception of an unpaid tax lien), it is only logical, at least to me, that the related scoring of its impact over time would go back to the date of occurence of the adverse item, not the arbitrary reporting of a later DOLA.

I am reluctant to accept as fact what appears illogical.

Is there a published statement from Fair Isaac that they take that approach?  If so, do they discuss the apparent illogic of such an approach?

[golo]

It's unfortunate that in this country things are still like that...

[Booner72]

I paid over 13 collections last year to get my house.  Not once, ever never ever ever never ever, did it drop my score ANY points, to pay it and have the balance updated to zero.

The only point I lost was when I disputed once, and it came back verified.  That was One Point.

It is my understanding that collections are based of the DOFD.  In fact, I have a 6/06 collection that just hit EQ yesterday, and I lost only 10 points for this.  I believe I only lost 10 because it was actually scored correctly - and this is the ONLY collection I have (do have 2005 BK and 2 90 day lates on student loans over 3 years old).

Just my experience.

[rckstrscott]

---

@Booner72 wrote:

I paid over 13 collections last year to get my house.  Not once, ever never ever ever never ever, did it drop my score ANY points, to pay it and have the balance updated to zero.

The only point I lost was when I disputed once, and it came back verified.  That was One Point.

It is my understanding that collections are based of the DOFD.  In fact, I have a 6/06 collection that just hit EQ yesterday, and I lost only 10 points for this.  I believe I only lost 10 because it was actually scored correctly - and this is the ONLY collection I have (do have 2005 BK and 2 90 day lates on student loans over 3 years old).

Just my experience.

---

+1 on this... I removed or paid 19 collection accounts to get ready for my home purchase, never dropped the score.

-scott

[Tuscani]

Paying a collection is definitely a big YMMV thing. I have seen both sides.. scores increase and drop once paid. However, I can confidently say I have seen more drops than increases in all my years working with credit. But, it's a gamble and will depend on many factors, as with most things credit related.