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Paying collections hurt score?

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Booner72
Senior Contributor

Paying collections hurt score?

I received this alert from MYFICO when I paid off collection accounts.  I lost one point.  From what I have read, there seems to be many opinions here on whether the DOLA affects the score or not.  However, MYFICO says this:

 

A FICO score could be affected if the 'DATE ASSIGNED' for collection is revised.    The more recent the "Date Assigned" the greater the negative effect has on the credit score."

 

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
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MarineVietVet
Moderator Emeritus

Re: Paying collections hurt score?


@Booner72 wrote:

I received this alert from MYFICO when I paid off collection accounts.  I lost one point.  From what I have read, there seems to be many opinions here on whether the DOLA affects the score or not.  However, MYFICO says this:

 

A FICO score could be affected if the 'DATE ASSIGNED' for collection is revised.    The more recent the "Date Assigned" the greater the negative effect has on the credit score."

 


The information I am posting comes from a very high up, very reliable source at myFICO.

 

Collections are supposed to be scored off the date of assignment and not the DoLA.  Now I'm not saying that it doesn't happen, but it's not supposed to, if the CA is reporting correctly and if the CRA is putting the info into the correct data fields.

 

Here's a thread discussing this: Settle or Pay in Full?

 

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

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