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Established Member
jmcmanna
Posts: 21
Registered: ‎04-13-2009
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medical collection effect on score

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?
Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
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Re: medical collection effect on score


jmcmanna 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?

Established Member
jmcmanna
Posts: 21
Registered: ‎04-13-2009
0

Re: medical collection effect on score

I used the FICO score estimator (Powered by MyFICO) on Bankrate.com

 

http://www.bankrate.com/calculators/credit-score-fico-calculator.aspx

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pizzadude
Posts: 9,669
Registered: ‎01-28-2010
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Re: medical collection effect on score

 


jmcmanna 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.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Established Member
jmcmanna
Posts: 21
Registered: ‎04-13-2009
0

Re: medical collection effect on score

I just ordered my Equifax FICO score; it did not improve like my FAKO score did, meaning my middle score is probably in the 620's (how disappointing). My TU FICO 3 weeks ago was 670 (the CA never reported to TU). Ahh well, I guess it's round 2 of GW letters...
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pizzadude
Posts: 9,669
Registered: ‎01-28-2010
0

Re: medical collection effect on score

Yeah I know it's disappointing that you don't get FICO® points for paying a collection...... Keep the GW letters going and hopefully they'll delete it...
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Valued Member
hippychic823
Posts: 117
Registered: ‎01-05-2012
0

Re: medical collection effect on score

I feel your pain jmcmanna!!! I have 3 medical collections (all below $200) that I PIF thinking they would delete them from my CR....they're still on there reporting as "Closed. Paid in full" But I want them GONE :smileyhappy: I'm gonna GW the heck outta the CA until they either delete the collections or get a restraining order against me :smileywink: (joking!!!!)
Valued Contributor
Duncanrr
Posts: 2,843
Registered: ‎06-08-2012
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Re: medical collection effect on score


jmcmanna 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.



Starting Score: EQ 551 TU 548 CK 607on 6/8/12, EX 542(AMEX pull 3/4/12)
Current Score: EQ 710 TU 727 EX 704 CK 719(FAKO-EX 697, EQ 697, TU 697)
Goal Score: 750

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wreith
Posts: 456
Registered: ‎06-13-2012
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Re: medical collection effect on score


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.

03/10/2014 Walmart TU 724
09/07/2013 MyFico EQ 684
03/10/2014 USAA FAKO EX 728, EQ 728, TU 728
Discover It $1700, USAA Cash Rewards AMEX $11K, USAA Rewards Platinum MC $12K, CareCredit $13.2K, Chase Freedom $1900, Walmart $4500, Lowes $9800, QVC $1200, HSN $2350, Macys Red Star Store $2900, Paypal smart connect $4022, VS Angelcard $1200, Amazon Store $2500, BCE $1K, Sam's Club Discover $8500, Home Depot $7200, FNBO AMEX $5300
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pizzadude
Posts: 9,669
Registered: ‎01-28-2010
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Re: medical collection effect on score


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.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX

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