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Regular Contributor
icloud2525
Posts: 199
Registered: ‎10-12-2012
0

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
Amex BCP $17,400, Amex Platinum NPSL, Virgin Atlantic World Elite MC $10,500, Chase Sapphire Preferred $5000, Barclay Arrival World Elite MC $5000, Citi Hilton Visa Sig., $8800, Citi TY Preferred $7900, Citi Diamond Preferred $7400, Citi Dividend $5900, US Bank Flexperks Visa Sig, $5000 Discover IT $6000, Chase Freedom $3500, Amex Hilton Honors $6000 Cap One Cash $2500,-- EQ FICO 768, EX FICO 755
Moderator
guiness56
Posts: 22,406
Registered: ‎01-17-2008
0

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.

Mega Contributor
RobertEG
Posts: 18,462
Registered: ‎03-19-2007
0

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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