08-23-2013 03:10 PM
I'm new to the forums but thought I might see if anyone had any opinions on my situation.
Some information about my: I'm 25, my oldest credit account is 3 years, I have 3 total credit cards, one installment loan (auto), and have never had any late payments of any kind. My utilization is low on my revolving credit lines. Recently, I received notice from a collection agency due to an unpaid ambulance bill for 2012 that I didn't realize was unpaid. Within one month, I paid the full bill ($2000 approx) but my credit score took a huge dive from around 750 to 630. I have low utilization and good payment history and all of my credit accounts are in good standing (aside from the collection).
Do any of you have any experience in this? I read that collections fall off after 7 years and they still negatively affect FICO scoring regardless of the balance of the account since it's a collection although I assume the paid debt is better than the unpaid debt since it won't show as a balance on my total credit.
Will I be able to get my score back up while this collection sits on my credit report? I can't really dispute the debt because it is definitely mine so I figure I'm stuck with the mark on my report. Would the best way to increase my FICO score slowly just be to continue keeping my utilization under 5%? Is there anything else I might be able to do?
08-23-2013 03:23 PM
You can ask the CA to remove it. Sometimes they will do this. Its often very easy. Sometimes, it takes work.
It will hurt less as it ages. But yes, paid is much better. It is unlikely that lenders will give you new credit with unpaid collections.
08-23-2013 04:15 PM
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.