Reply
New Member
frontratio
Posts: 4
Registered: ‎09-19-2007

Where do i get the most points????

I have 2 collection accts.with the following info:
 
Collection Agency 1
Report date: 3/06  Date opened: 1/05 High credit: $357  Balance: $357  Status: Collection
No date of last activity
 
Collection Agency 2
Report date: 4/04  Date opened: 7/03 High credit: $343  Balance: $343  Status: Collection
No date of last activity
 
The balances owed on both collection accts. have been paid off.  Will I get more points by having both collection accts. updated to reflect the "0" balance and a "PAID" status which would probably update the date of last activity to the current date.  My fear in this scenario is that the credit bureaus will consider this like a new collection acct. because under the date of last activity there will be a current date which would result in a new hit to my credit scores.  I am not sure how much of a hit this will be or how many points I may gain by a "0" balance and "PAID" status as opposed to leaving things the way they are since one collection acct. has aged 4 yrs. and the other 2.5 yrs.and i have already taken the hit on these accts.  What kind of input can I get on this? 
Moderator Emeritus
fused
Posts: 16,243
Registered: ‎03-12-2007

Re: Where do i get the most points????



frontratio wrote:
I have 2 collection accts.with the following info:
 
Collection Agency 1
Report date: 3/06  Date opened: 1/05 High credit: $357  Balance: $357  Status: Collection
No date of last activity
 
Collection Agency 2
Report date: 4/04  Date opened: 7/03 High credit: $343  Balance: $343  Status: Collection
No date of last activity
 
The balances owed on both collection accts. have been paid off.  Will I get more points by having both collection accts. updated to reflect the "0" balance and a "PAID" status which would probably update the date of last activity to the current date.  My fear in this scenario is that the credit bureaus will consider this like a new collection acct. because under the date of last activity there will be a current date which would result in a new hit to my credit scores.  I am not sure how much of a hit this will be or how many points I may gain by a "0" balance and "PAID" status as opposed to leaving things the way they are since one collection acct. has aged 4 yrs. and the other 2.5 yrs.and i have already taken the hit on these accts.  What kind of input can I get on this? 


FICO scoring doesn't reward you points for a paid collection. Paid or unpaid your scores get tanked. I know it stinks. These collections will remain on your reports for 7 years after they charged-off. You can try writing a GW letter and ask the CAs to remove them. No guarantee but it's always worth a shot. Here are some helpful links.
 
 
New Member
frontratio
Posts: 4
Registered: ‎09-19-2007

Re: Where do i get the most points????

Thanks for all the info.  I'm going to try that GW letter.
 

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+