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Frequent Contributor
Kathy4NU
Posts: 279
Registered: ‎07-09-2012

Collections and FICO score

How do collection accounts affect your score.  I know if they are paid or not paid have no bearing on the score.

 

What about age?   At what age does it affect your score less?

 

What about amount?  Does a $20 collection affect you the same as a $200 or even a $2000 or $20,000?

 

And last, what about how many?  I had 32 collections on my account (all medical ranging from $175 - $45,000).  I am down to 6 reporting - 3 of them I was successful in getting a GW yesterday but they have not come off yet.  Going from 32 - 6 I saw ZERO increase in my FICO score.  All but two are from 2010 - the other two will age off in April and July).

 

What about judgements?  Does the amount of the judgment matter?  What about if it is paid or not paid?  Does more than one have any bearing on your score?  Again, I had three judgements - was successful in getting two of them removed and saw ZERO increase in my score. 



June '12: EQ 553 TU 0 EX 545
April '13 Lender Pull EQ 731, EX 692, TU 722 - all FICO

Closed on home May 22, 2013 at 2:00pm!!!
CU Visa $1000, VS $350, Chase Freedom $1000, Discover IT $2500, Home Depot: $2700, Menards $3000, NFM $3500
What's been deleted: 32 collections, 5 PR, 2 tax liens, defaulted student loans
Established Contributor
bettercreditguy1
Posts: 743
Registered: ‎02-11-2012

Re: Collections and FICO score

Collections kill your score as it is a non paid/late account. Upon paying them, the damage has already been done. Scores normally do not immediately bounce back up. Until your last collection is paid and begins to age, they can remain on your report upto 7 1/2 years,  it will keep your score down through these periods.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico) EXP 735 (FAKO)
Updated scores 06/01/2014 EQ 797(Fico) TU 768(Fico) EXP 769 (Fico), EQ 849 (Next Gen 5/27/14 Penfed)


Remember the Three P's: Pay early in Full, Pay on Time, Patience
Frequent Contributor
Kathy4NU
Posts: 279
Registered: ‎07-09-2012

But at what point do they start to affect your score less...

But at what point do they start to affect your score less?  I am down to two from 2010.  I am hoping to GW them once they are paid off (they refused PFD but are medical and I am faily sure I will have success in going to the original hospital to GW them).    I am frustrated that I started with 32 and have PDF them but my score has not moved.  Is it because they are fairly new?



June '12: EQ 553 TU 0 EX 545
April '13 Lender Pull EQ 731, EX 692, TU 722 - all FICO

Closed on home May 22, 2013 at 2:00pm!!!
CU Visa $1000, VS $350, Chase Freedom $1000, Discover IT $2500, Home Depot: $2700, Menards $3000, NFM $3500
What's been deleted: 32 collections, 5 PR, 2 tax liens, defaulted student loans
Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010

Re: Collections and FICO score

Every day that passes it has less impact. Just because it doesnt reflect in your scores does not mean they arent aging.

Your newest collection is what hurts you the most. So for example as you get older collections to fall off or have removed, the smaller impact you see. Once your collection free thats when you usually see major improvements.
Good Luck
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