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Only open collection account removed but no score increase

Member

Only open collection account removed but no score increase

I had a recent (three month) collection removed this week and my score only went up one point. The collection was an incorrectly reported medical bill (insurance error). When the collection popped up it dropped my FAKO 48 points on two bureaus and almost 70!!! on the third.  My transunion FICO (only one I monitor regularly) also went down a matching 40-something points.  I assumed once it was removed (not marked paid, it has been fully removed as it was inaccurate) that my score would go right back to where it was. No other changes to my report have occured in this time that would hold my score down, either. I am so confused and upset because on top of the three month frustration of dealing with doctor's offices and creditors for someone else's error, it now seems my credit score is permanently damaged. How can that be? 

 

 

8 REPLIES
Super Contributor

Re: Only open collection account removed but no score increase

Do You have any other lates or collections?

Is the TU score FICO 8?

Did you have any cards report, to trigger a recalculation of your scores? I’m not sure removal of an item would be a trigger, if it quietly disappears. 

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812

Delta Reserve and CSP Jan 2018, no more 5/24 worries... unless new Chase Marriott/SPG replacement is enticing...meh, turns out not.
Message 2 of 9
Member

Re: Only open collection account removed but no score increase

Sorry for the delayed response. 

 

My other derogs are four federal student loans that were defaulted on five years ago (I actually just made the final rehab payment on today!) and an $88 BOA charge off from five years ago that I recently learned about and since they won't do a pay for delete and debts <$100 don't matter for newer scoring models, I'm leaving alone. That's it. I know that they are still derogs but I had two other collection accounts taken off about six months ago and they caused a large score jump, even with the defaulted loans and BOA charge off. The weird part to me is not simply that a very recent (3 month) derog removal didn't cause a score jump but that my score dropped when it was posted (predicatably) and then did not rebound at all when it was removed. 

 

No new accounts were reported in this time. Everything (three credit cards, one car loan) has been paid on time during this time. 

 

Yes, TU is a FICO 8 and everything else I'm using to monitor are Vantage

 

 

Message 3 of 9
Super Contributor

Re: Only open collection account removed but no score increase


@NothingNew wrote:

I had a recent (three month) collection removed this week and my score only went up one point. The collection was an incorrectly reported medical bill (insurance error). When the collection popped up it dropped my FAKO 48 points on two bureaus and almost 70!!! on the third.  My transunion FICO (only one I monitor regularly) also went down a matching 40-something points.  I assumed once it was removed (not marked paid, it has been fully removed as it was inaccurate) that my score would go right back to where it was. No other changes to my report have occured in this time that would hold my score down, either. I am so confused and upset because on top of the three month frustration of dealing with doctor's offices and creditors for someone else's error, it now seems my credit score is permanently damaged. How can that be? 

 

 


Your TU FICO 8 will probably increase once it's reported.


FICO8 EQ 741 TU 783 EX 759 Total revolving limits 518600
Message 4 of 9
Member

Re: Only open collection account removed but no score increase

Your TU FICO 8 will probably increase once it's reported.

It has been reported (confirmed removed) and no change. Oh, well. I did notice that the old (less than $100) charge off from five years ago started reporting again monthly for some reason. I thought that <$100 c/o don't factor into FICO 08, but may I'm wrong on that? I was planning on ignoring it as it is with BOA and they are notorious for not deleting or good-willing so I didn't want to deal with the hassle. Now that they are updating monthly, I guess I should. 

Message 5 of 9
Super Contributor

Re: Only open collection account removed but no score increase


@NothingNew

 

Yes, TU is a FICO 8 and everything else I'm using to monitor are Vantage

 

 


Definitely don't use Vantage Scores at all when trying to track your credit scores.  Only use FICO.  Since you have other negative items present, your FICO score likely didn't go up much if at all from the removal of the negative you mentioned in the original post.  Your VS scores very well may have, but they don't matter and only give you false hope that your FICO scores may do something similar.  They won't unfortunately.  I think when your FICO 08 score updates you'll see that it's very similar to what it was prior.

Message 6 of 9
Member

Re: Only open collection account removed but no score increase

I only use the Vantage score apps to monitor my credit report. The Vantage scores did not rebound either, so I am not basing my belief that there should be a rebound on those apps/"scores". I simply assumed that if an added erroneous derog dropped my score when it first reported that it would rebound to the same place when it was removed. Basically, I assumed it would be as if it was never there to begin with. The derog HAS reported clear from my Transunion profile and my FICO is still only 618 as of yesterday when it was previously 648. 

So, I am left with the assumption that my 5 yo sub $100 C/O reporting monthly again is what is bogging down the rebound. I get what you're saying that a "dirty" profile won't see a score increase from one derog removal, but I think you're missing the point that the derog DECREASED my score immediately and therefore it is reasonable to believe that one it is removed my profile should return to the same place it was before it was applied. 

Message 7 of 9
Super Contributor

Re: Only open collection account removed but no score increase

That is true and 100% correct, so it only means one of two things.  One, that negative piece of information is still being factored in or two, a different piece of negative information is now being factored in.  Something is holding back your score from going back to where it was.

Message 8 of 9
Community Leader
Legendary Contributor

Re: Only open collection account removed but no score increase

If the charge-off has updated and is unpaid, that is a change.

It has informed the scoring algorithm that the delinquency period on that debt has extended.

The same would apply if any collection has updated since your last scoring.

 

Additionally, you remain in a negative scoring segment/bucket when you still have any major derogs, so removal of one collection when other major derogs remain does not have the scoring bump that would be seen if the report were then clear of any major derogs.

Message 9 of 9