Understanding FICO® Scoring

[vegas757]

I had a Verizon account go to collection in March 2011. I paid it in full in April 2011. Upon checking my (3) credit reports in August and December 2011, and Febuary 2012, Verizon still had the collection as not being paid. Each time I called them I was assured that they would again update the bureaus. When I called in Febuary 2012, I spoke with a manager who told me he found where the mistake was and that this time the (3) bureaus would be updated. When I checked in March 2012, all 3 bureaus were reporting "paid". I know that the collection itself is damaging. However, now that the collection account has been updated to a recent "last activity" date of March 2012, as oppose to April or June 2011, will this have any negative affect on my credit score? I actually called Myfico and was given 3 different answers: Yes, in a negative way, No it doesn't at all, and it could. I googled this and also found yes and no answers. Does anyone know? If this does negatively affect my score, is it too late now to dispute the payment or activity date that's now being reported? Do I have any options?

[RobertEG]

No.

As for ultimate credit report exclusion of the collection, the statute requires that the collection be excluded after 7 years plus 180 days from the DOFD on the OC account.

Any reporting of any activity dates on the collection have zero affect on the DOFD.

As for scoring, the collection is an adverse item as of its DOFD, and once again, later reporting of activity by the debt collector does not alter that date.

It doesnt affect your scoring, and you most certainly did the right thing by having that important date corrected.

Until it was updated to reflect a current status of paid and a current debt balance of $0, a manual review of your CR would have told others that you still hand an unpaid, delinquent debt.

[vegas757]

It's just so confusing. I've personally had a mortgage broker (and read internet articles from some) who said they require some customers to wait until the day of closing to pay off old collections due to the last activity date (more recent) changing and dropping your credit scores before hand, thus affecting your loan and/or rate.

[honey07]

Yes you can write a letter to them asking for good faith of removal of the accounts, Because it was a oversight on their part for not updating when they were suppose to, I they are not willing to do that and if  you can  remember who you spoke to per you're phone  call ask them to write letter stating they failed to update and the oversight was their fault.