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Collection age info

Frequent Contributor

Collection age info

I've heard old collections do not count as bad as new. What date is that determined by? Have collection from 08 but wasn't reported until 2012
Chase Sapphire Reserve $32.5K, Amex BCP $20K, Amex PRG NPSL, Amex Hilton $12,000, Discover It $16,000, Citi Hilton $16,200, Citi TYP $14,400, US Bank Cash+ Visa Sig $12,000, Virgin Atlantic World Elite MC $13,100, Merrill+ Visa Sig $10,000, Fidelity Visa Sig $10,000, Barclay Cash Forward $16,500, Wells Fargo Rewards $12,500, Local CU $7000, Barclay Apple Rewards $5500, Chase Freedom $5000, Cap One Cash $2500,-- EQ FICO 768, EX FICO 777, TU FICO 781
Message 1 of 3
2 REPLIES
Epic Contributor

Re: Collection age info

No matter when the collection actually occured, if it was reported in 2012 it is considered a new collection and will hurt your score.

Message 2 of 3
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Community Leader
Epic Contributor

Re: Collection age info

+1

Debt collectors can report the date they received their collection authority, either by way of assignment from a creditor or their purchase of the debt, as the date opened of their collection.

 

As for how the collection is scored by the FICO algorithm, there is much anecdotal experience posted on the site to indicate that the date opened governs the scoring. 

Since FairIsaac has not, to my knowledge, published the specifics of the date used and aging effect of collections, that appears to be the best info available to us.

 

However, I personally dont see the logic in such scoring, as just as a collection is excluded based on the DOFD of the OC account, it would make sense to me that its scoring should not be based on the arbitray date that collection authority was ultimately assigned, but rather on the date that began the delinquency on the OC account.

 

Another of those mysteries of a secret scoring algorithm.

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