LVNV newly reported as collection

[Anonymous]

Hi,

I have an LVNV TL that for 6 years listed as an installment loan. My Fico slowly went up to 650, then suddenly this week I noticed my fico is down to 619, and suddenly I have collection from LVNV. The installment loan is no longer reported. I'm presuming this is what caused the hit on my score as nothing else has changed.

My question is, when this drops off in a year, what will happen to my score? Will it slowly go up like it has, a few point a month? Or once it drops off it's like it never happened and you go up a whole bunch of points?

I am asking because I need to make a decision regarding a property I own that is upside down. If my credit score is still ruined for another 4/5 years I may as well foreclose on that property.

Thanks so much for your input. LVNV totally sucks.

[tyhollin]

A collection account will stay on your report for 7 years even if it is paid. It hurts your credit score the most for the first 2-3 years then gradually hurts it less and less for the next 4 years until it almost doesn't hurt it at all and drops off. 

[Anonymous]

Well the collection will not stay for 7 years, because the DOLA is already at 6 now as I mentioned. Maybe I wasn't clear. It's the same LVNV collection, they just opted to start reporting it differently to hit my score one more time so I'd be compelled to pay them. Which of course I won't, I ony have 1 more year to go before it drops off anyway.

My question is whether the drop off next year will result in a significant uptick in points enough for me to justify paying the mortage on a house that will never recover (and that don't live in).

I know dropp off and score changes can be a nebulous issue, but from what I read if it's a new hit (like this one is) I would imagine that there would be a good uptick next year when it drops off.

[gdale6]

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@Anonymous wrote:

Hi,

I have an LVNV TL that for 6 years listed as an installment loan. My Fico slowly went up to 650, then suddenly this week I noticed my fico is down to 619, and suddenly I have collection from LVNV. The installment loan is no longer reported. I'm presuming this is what caused the hit on my score as nothing else has changed. Yes its the reason, and it was illegal of them to have been reporting it as an installment loan.

My question is, when this drops off in a year, what will happen to my score? It will rise Will it slowly go up like it has, a few point a month? If LVNV doesnt update it monthly anymore then you will see a slow rise over next year then a majority of the points being returned when it drops. Or once it drops off it's like it never happened and you go up a whole bunch of points? See above answer

I am asking because I need to make a decision regarding a property I own that is upside down. If my credit score is still ruined for another 4/5 years I may as well foreclose on that property.

Thanks so much for your input. LVNV totally sucks.

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The reporting period is not from the DOLA but the DoFD of the OC and LVNV must respect that date as well or you have what is called re aging and its highly illegal.

Welcome to MF

[Shogun]

Maximum on the CRTP is 7 years from the DoFD, no matter how they report it as.  It will still age off the same.

[Anonymous]

TransUnion and Experian in my opinion remove collections atleast 6 mos prior to DOFD. i mean completely remove it.

If that happens, your scores will go up considerably at once for the first few months, and stabilize if there is no other baddies around.

So look at your DOFD, plan on disputing it as Obsolete near the six month mark and expect a boost in your FICO score.

I had a medical collection removed from TransUnion recently, and my CreditKarma score before removal was 601 and after removal went to 687. now this is CreditKarma.

Same happened to Ex via CreditSesame and big boost in the score.

Deletions do make a huge difference especially if its the only baddie on your CR.

[Anonymous]

Thank you so much everyone. Yes, my bad of course, it's from Date of Deliquency (in my case the same as dola). It is such good news that my points will go up then, and I will definitely start reporting obsolete in 6 months. There are a number of late payments that will be dropping of then too, although that probably will hardly make a difference. I do have on more charge off that will drop of around 10/16, so a little bit longer for that.

Well, given the information you all gave me I will continue to pay the mortgage as painful as it is. Some real estate markets are very slow to recover, and this house is in one of those areas. I should have let it go 7 years ago but I was trying to be responsible.

Thanks everyone!