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How damaging are collections to your FICO

Regular Contributor

How damaging are collections to your FICO

Last Friday I did a PFD. I just checked Experian and its dropped off. I still have two collection accounts showing, one was a PIF and has been updated to "paid" but will remain on my CR for about another year. The other is relatively new, date opened 12/10 with a balance of $1080. Im slowly paying this off. I just opened a secured card with Cap1, this still hasnt reported to my CR. I have no other CC. I have three accounts in good standing with no lates (all auto loans). I guess Im wondering is, if I pay everything as I should from this point foward, could I still see a rise in my FICO over the next several months with two collections on my CR? Hope that made sense.Smiley Indifferent

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Valued Contributor

Re: How damaging are collections to your FICO


cgreer72 wrote:

Last Friday I did a PFD. I just checked Experian and its dropped off. I still have two collection accounts showing, one was a PIF and has been updated to "paid" but will remain on my CR for about another year. The other is relatively new, date opened 12/10 with a balance of $1080. Im slowly paying this off. I just opened a secured card with Cap1, this still hasnt reported to my CR. I have no other CC. I have three accounts in good standing with no lates (all auto loans). I guess Im wondering is, if I pay everything as I should from this point foward, could I still see a rise in my FICO over the next several months with two collections on my CR? Hope that made sense.Smiley Indifferent



Your score will rise as the CO aged. I am going to say 2yrs before you start seeing huge improvements. My CO aged 4yrs before my score was in the high 600s. Just make sure you don't make any more mistakes (lates, degros, etc...) here on out to see improvements. Just look at it like a garden. Plant that seed today and watch it grow. Just got to take care of your garden and overtime, it's going to bloom. Good luck !

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Regular Contributor

Re: How damaging are collections to your FICO


tntexans72 wrote:

Your score will rise as the CO aged. I am going to say 2yrs before you start seeing huge improvements. My CO aged 4yrs before my score was in the high 600s. Just make sure you don't make any more mistakes (lates, degros, etc...) here on out to see improvements. Just look at it like a garden. Plant that seed today and watch it grow. Just got to take care of your garden and overtime, it's going to bloom. Good luck !

I'm in the process of house shopping, so hopefully having a mortgage reporting will help me out as well. I'll keep paying down the $1080 collection as they will do a PFD. I was hoping I would be in better shape a lot sooner, but good things come to those who wait, right? Smiley Wink

 

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Valued Contributor

Re: How damaging are collections to your FICO

I just took a 100 point FICO hit when a collection, apparently from 2006 just hit my credit report last month.  (No lates, just suddenly a new collection saying date of default is 11/10.)  It's falling off in 09/13.

 

 

Sooner, once I get to the bottom of this.  Smiley Mad

 

Hopefully your FICO will go up considerably!

 

 

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