Credit Score Increase question?

[RESSECUP]

I just purchased my FICO score and its currently at 547--I didnt know they used Transunion, I thought Equifax was more reliable.

My question is I have quite a few collections on there most recent was a year ago, im assuming paying these off will increase my score dramatically? I currently have credit cards that are closed but im paying on time and a car note that i pay on time as well.

[guiness56]

There is a FICO for each of the 3 CRAs.  The consumer cannot buy the EX any longer. 

I am not sure what you mean by more reliable.  The scores are based on what is in each report.

Paying off a collection will not help your score at all.  Paid and unpaid collections are scored the same by FICO.

These would need to be removed for any type of increase.

[Anonymous]

What about paying off collection debt for long term credit score increase? I have about 4 old collections debts that i just finished settling, would my credit score increase in the near future about 6 months or so from now? Or would need to go the GW letter route and get the accounts removed for any increase?

[Anonymous]

I've been curious about this as well.  I know paying a Collection doesn't help, but it would seem logical (I know this is FICO we are talking about) that a 0 balance reporting on a derogatory item would be better than say a 325 dollar balance reporting.

[Anonymous]

That is because it factors into your utilization

[guiness56]

Collections NEVER factor into your utilization.  Only OC accounts do.

[Anonymous]

Gotcha when I noticed it a while back must of been a OC, not a CA account then?

[guiness56]

Yes, it must have been an OC account.