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Valued Member
rkp25
Posts: 42
Registered: ‎09-18-2009

If I have all of the Collections removed....

I have 4 medical collections accounts on my credit reports, if i pay them all off and get them removed, how much of an increase might I expect?

 

The totals of each are $336, $280, $58 & $220. 

 

My current TU is 655

and EQ is 649

 

Thanks, shooting for a home purchase this year!

Moderator
Shogun
Posts: 12,859
Registered: ‎04-15-2011

Re: If I have all of the Collections removed....

It all depends on what's left on your CR.  Do you have any more baddies?  What positive TLs do you have.  What is your AAoA?  This all factors in.   But on a good note, removal of those baddies will make for a cleaner CR and I'm a big fan of that.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Valued Member
rkp25
Posts: 42
Registered: ‎09-18-2009

Re: If I have all of the Collections removed....

my TU report reads like this under accounts, plus the 4 medical collections I mentioned above (plus the collections are all fairly new, within the past 2 years) :

 

Company Account number Date opened Balance Status Negative Indicator? [?]  

Credit Card                                                             Chase Na                                                  10/2003$0Paid or paying as agreedNo         
Mortgage                                                                                             Bank Of...                               10/2005$090 days past dueThis account has late payments in the past               
Mortgage                                                                                           National ...                               10/2004$0Paid or paying as agreedNo         
Mortgage                                                                                             Wells F...                           11/2003$0Paid or paying as agreedNo        
Mortgage                                                                                           Gmac Mort...                             11/2001$0Paid or paying as agreedNo         
Student/Education Loan                                 Us Dept Of Education                                                        4/2001$0Payment after charge off/collectionThis account has late payments in the past               
Vehicle Loan                     Chrysler Financial Servi                                                     7/2006$0Paid or paying as agreedNo         
Vehicle Loan                       Carolina Telco Fcu                                                          10/2009$6,966Paid or paying as agreedNo        
Moderator
Shogun
Posts: 12,859
Registered: ‎04-15-2011

Re: If I have all of the Collections removed....

Would need more specifics on the Bankof... and the student loans to know how long they have left, but after that, you would be clean with the collections gone.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Regular Contributor
92235
Posts: 140
Registered: ‎03-30-2010

Re: If I have all of the Collections removed....

I had one unpaid medical collection for $173 on my report fall off. I was at 690 EX and a little over 700 EQ. I checked my EQ about six months after it fell off and it jumped to 757. The week after the collection fell off I applied to AMEX for the BCE. I was approved and they sent me a letter with my EX. It was 790. I was blown away. At the time I had about 4 year history with 4 CCs and low Util.

Valued Member
rkp25
Posts: 42
Registered: ‎09-18-2009

Re: If I have all of the Collections removed....

The BOA was a home mortgage that we paid off when sold but but there were 90 day lates on there, it should fall off this summer, June 2013. The US Dept of ED was paid off in full too and should fall off this year too. Also, I'm an AU on my spouses bOA cc and for whatever reason it's nit reporting on my TU but is reporting on my EQ and Ex, it carries a balance of $240 with a credit limit of $9k, should I makeassure this get's added to my TU report, will this help?

 

Thanks, you guys are awesome!

Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010

Re: If I have all of the Collections removed....

Having the collections removed will help boost your scores, but as mentioned it varies depending on other negatives.

 

Guess the first question to ask is what the reason you are looking to improve your scores? Are you trying to purchase something? Just trying to reach a goal?

Good Luck
May all your dreams and wishes become a reality!
Valued Member
rkp25
Posts: 42
Registered: ‎09-18-2009

Re: If I have all of the Collections removed....

Trying to purchase a home.  I realize that the better my credit, the more options I will have. My goal is to start the loan process in 3 months so want to make sure I have all my ducks in a row. The medical collections were paid yesterday and will hopefully be deleted some time after the 1st. 

Valued Contributor
JM-AM
Posts: 3,303
Registered: ‎06-09-2010

Re: If I have all of the Collections removed....

The first thing I would do is stop talking to collection companies for the moment.

 

Understand this, paying off collections will not have an major impact on your scores. If the collection is removed that should have a much bigger impact, but many things to consider. How old the account was (the older the account the less impact it has) as an example.

 

Next thing you need to understand is paying off collections can lead to your application being denied due to updated negative information within the last 12 months.

 

If you are going to negotiate your collections, negotiate for a PFD. Do not tell them you are trying to buy a house as this will hurt your chances for negotiating.

 

Many Lenders will not require you to pay older collections, but it is UW discretion and Lender overlay requirements that dictate it. If you are required to pay the collections for approval you can ask if you can pay them at closing. You can still try and negotiate a payment but must have it in writing on what they agree too.

 

As far as rates go yes you will qualify for a better rate with a Conventional Loan with a higher score, but most other loan programs, score qualification has very little impact on the rates and if they do it is very minimal.

Good Luck
May all your dreams and wishes become a reality!

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