question about collection

[mousefai]

hi guys,

just wanna know some answer for the question below:

1st, does having 2 collection/late payment damage more to your credit report compare to 1 collection/late payment? or it has the same damage overall?

2nd, does the amount in collection matters (in term of hurting the credit score)? so 500$ do the same damage as one in 50000$?

let me know.

thanks. 

[guiness56]

Yes, the more collections/late payments the more damage.  You are dinged for each one.

No, the amount of the collection has no impact on your score.  You would be dinged the same no matter the amount.

[RobertEG]

+1

I would add that the main distinction will most likely come into play if/when one is removed.

FICO categorizes, or "buckets," payment history scoring based on whether you have any remaining major derogs.

If you have two, and one is deleted or excluded, you will still be in the less-favorable scoring bucket.

However, once all majors are gone, you will then move into a better scoring category.