Senior Contributor
Posts: 3,070
Registered: ‎11-02-2009
Re: Improving Credit Scores

kimfl wrote:

Not ALL lenders use a FICO score-one lender I spoke to used Experian, and another (Wells Fargo) used some company called Rels Credit.


If an account sent to collections is well past the statute of limitations for collections in my state, should I even bother with it? I'm talking about accounts that went to collections 5-6 years ago. I feel that I am far better off just leaving them alone and waiting for them to drop off, than to try and contact someone to get them paid.

You are correct that not all lenders use FICO scores, but the overwhelming majority do use the score.  If a lender says they use Experian, they probably still mean your FICO score calculated using your Experian report.  Also, I think (though am not sure) that Rels Credit is a company providing credit report information to lenders along with FICO scores.

Re your collection account, it depends.  If you're asking what you should do to improve your credit score, paying your collections will not improve your FICO score.  If you are able to negotiate a pay for delete agreement, that would remove the collection and improve your score.  That may or may not matter to you depending on what you are trying to accomplish right now.  They will fall off after 7 years, so not that long from now.


There are other reasons to pay off collections besides your credit score, but you are correct that you can just wait on them to fall off at this point.

Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720

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