Mega Contributor
RobertEG
Posts: 17,816
Registered: ‎03-19-2007
Re: Credit Report- Collection

Yes, deletion of a major derog, particularly if it is your only derog, will make your payment history "clean," and put you into a better scoring category, in addition to the removal of the derog itself from scoring.  I would expect moving above the mid-600's, but other factors will most likely keep you well below 700 for the immediate future.

 

You major remaining scoring impacts at this point are most likely your length of credit history (approx 15% impact), of which you can do little other than age, and your lack of revolving credit, which is a major part of a 30% scoring category.  FICO places heavy impact on the showing of effective use of discretionary, revolving credit (e.g., credit cards).

However, that takes time to app, get approved, and report, so little opportunity in your current mortgage process.