Understanding FICO® Scoring

[rom828]

This has probably been asked/answered before, but I'm still sort of new and didn't see it!

I have  a collection that will drop off 3/08. (NCO for $300..old BellSouth bill). 

Will this make much difference in my score?

I understand the other various factors that come into play, but wasnt sure if collection accounts are usually worth a certain # of points.

I've been working the past 2+ years to clean my credit.  I have a paid (12-05)  Providian CO that drops 06-10(plan to try GW), paid (11-05) Applied Bank(nee'Cross Country) closed by consumer, and a Cap1 CO that I'm still working on. It's not in collections on my report, but IS unpaid. Plan to work on settlement.  Also had state tax lien from 1998 satisfied in 2004 (that one is really a drag as wasnt even aware of the debt and paid it immediately....long story but could not get state to remove).

All other accounts, a mix of 2 major credit cards (50% util--I know I need to get lower), 4 retail cards (4% util), 2 paid car loans, no lates and not yet showing is a new mortgage.  I checked with Wells FArgo and they say they are reporting it the 7th of each month, but it hasnt shown on my CR yet (took out mortg. 10-07...first pyt 12-07).

Current EQ is 622 and TU is 677, no EX yet.

Appreciate any thoughts!!!

[MidnightVoice]

For DW and I an average of 45 points on EQ and EX

It was our only baddie

[granny031350]

I just had (today) Equifax delete 2 collection accounts and 1 judgment.  Net change, score up from 584 to 598.  These were from 2001 (collections) and 2004 (judgment).  In April I have 4 negative accounts coming off so will see how much that changes the score as well. Hopefully will put me up over 600.

[D_Boone]

I had one drop off of TU this month and score jumped 15 points instantly. Its not just the point spread. alot of banks will turn you down if you have ANY delinquencys. For example when applying for any cards from Chase that is one of the 3 questions you have to check. I have no charge offs.

[rom828]

Looks like I should see some improvement, but maybe not as much as I'd hoped.

Oh, well, at least it gets me that much closer to "getting clean"! 

Time is the great healer,  so hopefully another couple of years for all else to drop off and I'll be firmly in the 700 club!!  My plan is to get the Cap1 taken care of (due to drop off 6-10) so I don't have any 'unpaids', and then work on paying down all other debt to improve utilization.

According to the simulator I will  be in mid to upper 700s in 6-18 months if I get my utilization better and these other things are older or off!

I hope the mortgage finally showing up will help as it'll give me a better 'mix', but I guess intitially I might take a hit......

any thoughts?

[scramblingin2007]

I got a whopping 13 points for a deleted collection, drop off date was 2011. was my only collection

[haulingthescoreup]

DH has a medical collection that shouldn't be there on EQ and TU, but not on EX. (Insurance is paying, so its days are numbered.) The collection is from July 2002. EQ is 709, TU is 710, and EX (no collection) is 788. He has a disgustingly clean history.

So for those like DH, and MV and Mrs. MV, with long, well-established, clean histories, a single collection can be a killer, even when it's pretty old. It will be interesting to see if DH's other two scores catch up to EX when the collection is removed. Which it will be!

[rom828]

Just an update...

Scorewatch today has my score up by 13 points. 

Now at 633 EQ, 643 TU (677  mentioned in opening post was FAKO)   640EX

The old collection dropped off, but also I've been moved to 'good' for new credit which helped also (one retail account and a mortgage were added in '07), so not sure how many points for just the collection, but it's 13 points and I'll take 'em!!

WOOHOO!!

Message Edited by rom828 on 03-10-2008 10:27 AM

[Sylviatob]

It's hard for me to tell what scoring benefit I received from getting 3 med collections and 1 charge off from my cr's. It was a period of working on them, and going on an app'ing spree. So they more or less remained the same.

But I DO know, that having them removed opened a lot of doors for me to receive better prime cards with great opening cl's.

[MidnightVoice]

haulingthescoreup wrote:

So for those like DH, and MV and Mrs. MV, with long, well-established, clean histories, a single collection can be a killer, even when it's pretty old. It will be interesting to see if DH's other two scores catch up to EX when the collection is removed. Which it will be!

I think this is a very important point.  And I am glad that your DH's score differential is in the same ball park as ours was!