Late Pays On Collection Account

[Anonymous]

I have collection accounts that have been paid in full. In reporting to the credit agencies, as the documented late pays fall off after 7 years within those accounts will my credit score improve, or agencies only look at the account date it was charged off, and do not acknowlege the late pays?

[RobertEG]

OC reporting of monthly delinquencies are separate derogs from the reporting of a collection by a debt collector.

They are each individually excluded at 7 years from their dates of occurence.

As they become excluded, they of course are no longer included in your scoring.

That will usually not result in any significant improvement in credit score when more serious major derogs, such as a reported charge off or collection remain.

It is when the most serious derogs are removed that the scoring will show significant movement, and then usually only when there are no longer any major derogs.

[Anonymous]

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@RobertEG wrote:

OC reporting of monthly delinquencies are separate derogs from the reporting of a collection by a debt collector.

They are each individually excluded at 7 years from their dates of occurence.

As they become excluded, they of course are no longer included in your scoring.

That will usually not result in any significant improvement in credit score when more serious major derogs, such as a reported charge off or collection remain.

It is when the most serious derogs are removed that the scoring will show significant movement, and then usually only when there are no longer any major derogs.

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Thank you for your response!

[Anonymous]

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@Anonymous wrote:

I have collection accounts that have been paid in full. In reporting to the credit agencies, as the documented late pays fall off after 7 years within those accounts will my credit score improve, or agencies only look at the account date it was charged off, and do not acknowlege the late pays?

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Regarding an OC account, the lates are ALWAYS going to be older than the charge off, so they will be removed individually as each reaches 7 years of age. Then at no later than 7.5 years from the DoFD (not the charge off date) the entire account will be removed. However typically the CRA's remove at the 7 year mark, rather than 7.5 years. What this means is that if the account follows a "typical" charge off path, it will start with a 30 day late, then progress each month to 180/Charge off. So when the first late (which is also the DoFD) reaches 7 years of age the entire account will drop off. If there were late prior to the DoFD, those will be removed individually.

Collection accounts should not have a reported payment history.