For those wondering about the impact of late payments and collections (baddies) and goodies (paying off cards, lowering UTI), here's a run-down of my own journey the last 3 years:
Note: Until Feb of this year, I did not know that Providian's/Washington Mutual scores are PFICO's, or that TU's "TrueCredit" were FAKO's - so that's all I was following.
April '05: PFICO = 610, One student loan I thought was included in a consolidation loan was *not* so I didn't even open the envelopes and had 90 day late added. My fault. Previous scores were around 680 (70 point drop)
*Stopped checking scores and just buckled down for two years*. Didn't apply for credit or add significant new debt. Slowlwwwy paid down balances on cards.
April '07: PFICO = 685. Decide to buy our first home. Joined TU's True Credit, thinking I'm getting true FICO scores. - Only derog was still the 90 day late Student loan payment. Scores there are all listed in the 680's (FAKO's). Hubby's credit is much worse and he is self-employed. Decide to try and qualify on me alone.
Mortgage broker says my scores met the minimum required of 680 (assume he meant one of true FICO scores) and I wasn't smart enough (yet) to ask what the score actually was. Got the mortgage and the home- Woo-hoo!
*Stopped checking scores and cancelled TrueCredit as soon as house closed in June '07. Start putting lots more on cards buying stuff we didn't necessarily need but wanted (can you say new sofa and HDTV?)**
December '07 - Jan '08:
Important events I didn't track:
- got a call from a collections company that said I owed $100 to my Doctor. I didn't think that was right, but I didn't want any trouble so I paid it right away and figured I'd work it out separately.
- Get two new car loans (my name only) at 6% each.
- Paid off about $6000 in CC debt from bonus money
Did not check my scores - oh wish I had!!
February '08: See my PFICO score has suddenly dropped to 608 - *very confused* - had paid down most of those new house buys and thought score would go up. Found the forums here and learned that PFICO is different from 'regular' FICO.
Pull all 3 MyFICO reports. new (paid) Medical Collection listed on two bureaus (TU and EXP), reported Jan 08.. 90 day late on student loan (now 3 years on) is lstill listed on all three.
- TU and EXP have scores of 674 and 675.
- EQ, with no collection listed has score of 730
Really wonder what they were before that collection hit.
Previous to paying off the 6k I think my total utilization was probably around 60% - After: 7%.
I can only imagine how low they would've been if my utilization were still at 60%--Utilization probably is truly the biggest factor.
Because it's not reporting on EQ, but *is* on TU and EXP - I think it's *very* clear what effect the collection is having!!!
March - April '08: Become active on this board (can you tell? 
) . Have preapproved offer from AMEX for HHonors card and decide to go for it. Am approved for $5900.
) . Have preapproved offer from AMEX for HHonors card and decide to go for it. Am approved for $5900. Decide to do an app spree while my EQ is good (and no med collection) and TU and EXP not terrible - even with the collection.
Have several hard inquiries, and get new cards, in order of application:
- Amex (2 cards - HHonors, $5900 limit and Gold) - pulled EXP only
- USBank Plat Visa - $5000 limit - pulled TU only
- Denied by Wells Fargo for too many inquiries. - pulled EQ only, but no inquires listed other than for mortage and opening up an ING checking account.
- Citibank HHonors - $7500 limit - pulled EXP and TU
- BoA gold - $7500 limit - can't find their inquiry at all, maybe only did a soft??
- Chase - New card with $2400 limit, rolled it into an old card I had with them - pulled all 3
- Countrywide/FirstUSA/Chase card - $6500 limit - pulled all 3
Mid April - join PenFed - pull EQ only
- Gas Rewards Visa - $10,000 limit (first 5 figure card)
PenFed and Countrywide Card hasn't hit yet. Also not reported yet is Amex Gold.
- EXP drops to 665 (10 point drop)
- TU Drops to 664 (9 point drop)
- EQ goes UP to 743 (13 point increase)
- PFICO is up to 633 (some, but not all PIF CC accounts reporting)
Pleasantly surprised that the hit in EXP and TU wasn't greater. TOTALLY SUPRISED by EQ - No rhyme or reason I can think of. Hoping it doesn't drop. Hoping nothing drops!
With the new cards and no new debt - In May, I should have a total 2.5% Utilization reporting.
Next credit hope: Going back to school for my BSN with help from Student loans at a reasonable rate.
Hoping this helps!
Sovi
Just thought I'd add a little info:
Though I'm comparing PFICO scores with FICO - I think it's telling that I had the same 70 point drop/difference for a 90 day late student loan as I did for a $100 paid medical collection.
One thing I've read lots here is that FICO does NOT care if the collection is for $100 or $1,000,000 - just that it is listed in collection.
I think I'm seeing that as true. Unfortunate for me, fortunate for those who are a million in the red? 
I also just had an 'a-ha' moment while responding to another thread (love this board!) , and wonder if the reason my TU and EXP scores dropped with an app sree is because there's a collection on those, but my 'clean' report is giving me Kudos for getting more credit - and so EQ has gone up.
Hmmmm... will be posting that question over on the credit card part of the site!
Sovi
Message Edited by Soviyana on 04-27-2008 07:00 PM