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New Collections account!!!

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xaiduz114
Regular Contributor

Re: New Collections account!!!

A paid collection can sometimes hurt your scores more than unpaid by having a recent "update" date.

Say you have an unpaid collection from 2010. Last it was updated on your reports was in 2012. Then in 2014, you pay it, and it dings your scores a bit because it looks recent to FICO, having updated from unpaid in 2012 to paid in 2014.

Starting Score: EQ 478 | EX N/A | TU 540 - 5/2014
Current Score: EQ 475 | EX 582 | TU 589
Goal Score: 700 by 5/2015 - My Credit Rebuilding Journey!
Collections (MED): DCS Financial (4) | Columbia Collectors (1) |
Dynamic Collectors, Inc (2) | Professional Credit Services (2) |
CMRE Financial Services (1) | Total: 10
Charge-offs: IQCU (1)
Cards I'm aiming to get:
Unitus Community CU SecuredBofA Secured
Message 11 of 15
stepstep
Valued Member

Re: New Collections account!!!


@xaiduz114 wrote:

A paid collection can sometimes hurt your scores more than unpaid by having a recent "update" date.

Say you have an unpaid collection from 2010. Last it was updated on your reports was in 2012. Then in 2014, you pay it, and it dings your scores a bit because it looks recent to FICO, having updated from unpaid in 2012 to paid in 2014.


Well, crap. In the last 30 days I have paid almost $2,200 for $4,250 in charge-offs and collections. These were agreed to me noted as paid in full, no one would respond to my PFD letters. I will try GW letters soon towards these. I was really hoping getting the 4 grand of money due off my report would help a lot. 

Message 12 of 15
xaiduz114
Regular Contributor

Re: New Collections account!!!

It's still a good thing to pay your debts, especially knowing you owe them. It may harm your score temporarily, but when it comes to underwriting and being analyzed, a paid collection/co looks better than unpaid. Plus it's still a debt you owe, whether it's on your reports or not.

 

Example: I had a CO with my old CU. Got reported to chexsystems. I could not open an account with a bank or credit union with it being unpaid. But I have since paid it, and now I am going to apply at a new credit union that said I should be eligible once it shows as paid.

Starting Score: EQ 478 | EX N/A | TU 540 - 5/2014
Current Score: EQ 475 | EX 582 | TU 589
Goal Score: 700 by 5/2015 - My Credit Rebuilding Journey!
Collections (MED): DCS Financial (4) | Columbia Collectors (1) |
Dynamic Collectors, Inc (2) | Professional Credit Services (2) |
CMRE Financial Services (1) | Total: 10
Charge-offs: IQCU (1)
Cards I'm aiming to get:
Unitus Community CU SecuredBofA Secured
Message 13 of 15
stepstep
Valued Member

Re: New Collections account!!!

Yup, that is my feelings about the debt. I inncured it, I need to pay it. I just had visions of my score being raised enough to make me feel ok about my savings and tax return being wiped out so low. Reap what I sow though.

Message 14 of 15
xaiduz114
Regular Contributor

Re: New Collections account!!!

Unfortunate things happen. Smiley Sad I'm sorry that happened to you, but it is what it is. Make the best of the current situation, and strive to make the future better. Smiley Happy

I hope things get better and you can get these taken care of!

 

Also, once you get those paid off, if they are still on your reports, you can try to GW the creditor to remove the negative entry. Might not work, but definitely worth a shot!

Starting Score: EQ 478 | EX N/A | TU 540 - 5/2014
Current Score: EQ 475 | EX 582 | TU 589
Goal Score: 700 by 5/2015 - My Credit Rebuilding Journey!
Collections (MED): DCS Financial (4) | Columbia Collectors (1) |
Dynamic Collectors, Inc (2) | Professional Credit Services (2) |
CMRE Financial Services (1) | Total: 10
Charge-offs: IQCU (1)
Cards I'm aiming to get:
Unitus Community CU SecuredBofA Secured
Message 15 of 15
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