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Regular Contributor
Posts: 169
Registered: ‎05-02-2007
0

Collection account only drops score a few points?

I had a junk collector (midland) buy a very old account and sent me the first letter after i applied for my mortgage.  It hit my credit scores but only droped them by 15 points!

I did research and found that if you have several good standing tradelines (i have 7 with good history, no missed payments) that they rarely hit the scores hard.  

Is this true? 

Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Collection account only drops score a few points?

It's more of a scoring bucket issue. If you had perfectly clean reports with no lates, then I bet that CA would have dropped your FICO a bunch more. I've lost as much as 105 on a perfectly clean report. Conversely, if you have other baddies or recent baddies reporting, then the impact of that CA is minimal because other items are dragging your score down. Another factor is how that CA reports.

 

Regular Contributor
Posts: 169
Registered: ‎05-02-2007
0

Re: Collection account only drops score a few points?

thanks, i did have a verizon collection that was reporting and updating every month.  That might be it

Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: Collection account only drops score a few points?


kyomagi wrote:

thanks, i did have a verizon collection that was reporting and updating every month.  That might be it


I had that too...big score drainer with their constant updates.

Regular Contributor
Posts: 169
Registered: ‎05-02-2007
0

Re: Collection account only drops score a few points?

ya, as a condition for my mortgage, i had to pay it off, so i complained to the BBB and the collection company agreed to remove with full payment.  

Super Contributor
Posts: 8,172
Registered: ‎03-25-2007
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Re: Collection account only drops score a few points?

When a collection dropped off an otherwise clean report I gained an average of 51 points

The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Mega Contributor
Posts: 19,449
Registered: ‎03-19-2007
0

Re: Collection account only drops score a few points?

While FICO has not made public the specific criterion for scoring of major derogs, such as a collection, I am presuming that its point impact is keyed to the age of the adverse item.  For a collection, that should be the DOFD on the OC account, as that is the adverse item that ultimately resulted in the collection, and is the date used to determine its credit report exclusion date.

I would thus presume that a collection reporting with a later DOFD would impact more than a collection with an earler DOFD.

I would also presume, as previously stated, that your bucket category, such as the presence of other major derogs, would afftect the impact, as either the addition or deletion of a collection would most likely not result in a change in bucket category........

Does anyone know how FICO scores the decline in their impact over time?

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