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Paid/Settled Collections Score Impact

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Anonymous
Not applicable

Re: Paid/Settled Collections Score Impact


@Anonymous wrote:

I'll chime in too. I was in the same boat. I paid off about 10 collections. That had no positive impact on my score. Then I hired Lexington Law to have them removed. Once removed, that didn't move my score much either, maybe 20 points. It wasn't until I paid off all of my revolving debt that my score jumped massively. Appears to me over the years that each collection destroys your score when it goes on, but is irrelevant if you take care of it and/or have it removed. So yeah, makes no sense.


Yeah, we're like a bunch of little servants trying to please a flighty, mean, unpredictable master. It's really pretty ridiculous, if you think about it. 

Message 11 of 16
medicgrrl
Valued Contributor

Re: Paid/Settled Collections Score Impact

Was that collection updating every month? If it hadn't updated in awhile, I could see the score drop.


EQ 778 EXP 782 TU 729
Message 12 of 16
Anonymous
Not applicable

Re: Paid/Settled Collections Score Impact


@medicgrrl wrote:
Was that collection updating every month? If it hadn't updated in awhile, I could see the score drop.

No, it seems to update every 3 months or so. 

Message 13 of 16
Shadowfactor
Valued Contributor

Re: Paid/Settled Collections Score Impact

Sorry to revive an old thread but I wanted to get an answer without making a new thread.

 

Do collection accounts that update every month affect your score more then collection accounts that don't update ?





Total Revolving Limits $254,800

Message 14 of 16
Anonymous
Not applicable

Re: Paid/Settled Collections Score Impact

From my own personal experience the ones that update every month hurt more. Using fako on ck every month I see my score jump 20-25 points when my payments post on time then drop 15-20 points when co report. I also use credit check total for actual scores but that only updates once a month so I can't really see the change but score jumps are similar 5-10 points per month.
Not sure how paid ones are going to do to my score yet I'm going to pay my first one this week
Message 15 of 16
Anonymous
Not applicable

Re: Paid/Settled Collections Score Impact


@Anonymous wrote:

The entire thing makes no sense to me. Why would a score be higher with open, unresolved, collections vs closed/paid ones?


It's usually an age thing. An item several years old that has not been updated for several years, will ding your scores when its updated to paid because the algorithm looks for the reported date. After a few reporting cycles you may see some score recovery.  OTOH, a releatively new item, or one that has been updating frequently stays "fresh" to the score algorithm, and paying it usually has no immediate score effect.

Message 16 of 16
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