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@Anonymous wrote:
I had a $25 medical collection that is 1 year old. The collection agency would not PFD. I paid it in full 1 month ago and sent a GW letter that was ignored. It did update on my credit report to "current closed". My Experian and equifax FAKO scores jumped significantly. My question is if I can expect the same result on my FICO score when I apply for a mortgage this week?
Are medical accounts that go into collections scored differently than a credit card or loan that had late payments? I ask this because I used the FICO score estimator and one of the questions asked if I had any late payments on any credit cards or loans. This question has a significant impact on my FICO score. Can I answer no to this question with the medical collection on my CR?
FICO wouldn't move on the zeroed-out balance CA alone.
Are you using a FICO score estimator that's available to you after pulling a FICO report?
I used the FICO score estimator (Powered by MyFICO) on Bankrate.com
http://www.bankrate.com/calculators/credit-score-fico-calculator.aspx
@Anonymous wrote:
I had a $25 medical collection that is 1 year old. The collection agency would not PFD. I paid it in full 1 month ago and sent a GW letter that was ignored. It did update on my credit report to "current closed". My Experian and equifax FAKO scores jumped significantly. My question is if I can expect the same result on my FICO score when I apply for a mortgage this week?
Are medical accounts that go into collections scored differently than a credit card or loan that had late payments? I ask this because I used the FICO score estimator and one of the questions asked if I had any late payments on any credit cards or loans. This question has a significant impact on my FICO score. Can I answer no to this question with the medical collection on my CR?
Unfortunately there isn't any correlation from FAKO scores to FICO scores, sometimes they move in opposite directions. The only way you would get a FICO score boost would be if the collection is removed from your credit reports.
However the newest FICO score model ( FICO08 ) ignores nusiance collections under $100, so it wouldn't be scored in the FICO08 model. We can't purchase this score model though, and it isn't in widespread use by creditors yet.
@Anonymous wrote:I used the FICO score estimator (Powered by MyFICO) on Bankrate.com
http://www.bankrate.com/calculators/credit-score-fico-calculator.aspx
Was curious and used the Estimator. It gave me range of 635 to 685 which is pretty much spot on.
Unfortunately there isn't any correlation from FAKO scores to FICO scores, sometimes they move in opposite directions. The only way you would get a FICO score boost would be if the collection is removed from your credit reports.
However the newest FICO score model ( FICO08 ) ignores nusiance collections under $100, so it wouldn't be scored in the FICO08 model. We can't purchase this score model though, and it isn't in widespread use by creditors yet.
So if I just paid a CA for a medical bill that was $75, it really doesn't have any effect on my FICO score cause it's a "nuisance collection"? I am planning on Goodwilling them to death on it as soon as I can get the contact info I need for proper routing.
@wreith wrote:Unfortunately there isn't any correlation from FAKO scores to FICO scores, sometimes they move in opposite directions. The only way you would get a FICO score boost would be if the collection is removed from your credit reports.
However the newest FICO score model ( FICO08 ) ignores nuisance collections under $100, so it wouldn't be scored in the FICO08 model. We can't purchase this score model though, and it isn't in widespread use by creditors yet.
So if I just paid a CA for a medical bill that was $75, it really doesn't have any effect on my FICO score cause it's a "nuisance collection"? I am planning on Goodwilling them to death on it as soon as I can get the contact info I need for proper routing.
Only the most recent FICO 08 version. Any other FICO version ( 98, 04 ) will ding your score for the collection, either as unpaid or paid.