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soulglo31
Posts: 2
Registered: ‎01-01-2008

Collection removal, how many points?

Since the recipe for calculating Fico scores is top secret, how do we know what's the most effective in improving our scores? I recently paid off three collections and I wonder if it will actually make a difference in my score, or am I running myself ragged? Does score improve each year as old debt gets older?
Super Contributor
MidnightVoice
Posts: 8,158
Registered: ‎03-25-2007

Re: Collection removal, how many points?



soulglo31 wrote:
Since the recipe for calculating Fico scores is top secret, how do we know what's the most effective in improving our scores? I recently paid off three collections and I wonder if it will actually make a difference in my score, or am I running myself ragged? Does score improve each year as old debt gets older?


For DW and I, dropping a collection (nearly 7 years old) was an increse of 50 points.  But this was the only baddie left on our reports.  EQ went up to 735 for me, 758 for DW, and EQ went up to 776 for DW.  Each one was an increase of 45-55 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
Moderator Emeritus
fused
Posts: 16,243
Registered: ‎03-12-2007

Re: Collection removal, how many points?

Welcome to myFICO forums! Please read the credit scoring 101 thread in my sig line if you haven't already. Moving to Understanding FICO Scoring Forum.
Valued Contributor
cobra19
Posts: 1,426
Registered: ‎07-24-2007

Re: Collection removal, how many points?

paying off an old collection is not going to necessarily help you all that much.  You need to get that collection deleted from your report to realize a bump..
 
Generally speaking, the older a debt gets, the less influence it has.  
New York Yankees - 2009 World Series Champions. 27... and counting.....
Super Contributor
MidnightVoice
Posts: 8,158
Registered: ‎03-25-2007

Re: Collection removal, how many points?

You are right.  I looked at the title of the thread and thought it had been deleted not paid off
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
Valued Contributor
cobra19
Posts: 1,426
Registered: ‎07-24-2007

Re: Collection removal, how many points?

I am still trying to figure out that 50 point bump for an almost-7-year-old collection.
New York Yankees - 2009 World Series Champions. 27... and counting.....
Super Contributor
MidnightVoice
Posts: 8,158
Registered: ‎03-25-2007

Re: Collection removal, how many points?



cobra19 wrote:
I am still trying to figure out that 50 point bump for an almost-7-year-old collection.


So am I.  It occurred on my EX, DW's EX and EQ, averaging 50 points.  The only thing I can figure is that it was the only derog of any sort on any of the reports so it was weighing heavily on us.  So we now are all green for 7 years and in the high 700s (780 plus) on EQ and TU, and 730-750 on EX (HELOC=CC).
 
I have no explanation other than that, but it is 3 events, not just one.
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

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