topic Re: Where do i get the most points???? in Understanding FICO® Scoring

Where do i get the most points????

Anonymous — Tue, 16 Oct 2007 20:49:05 GMT

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?

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

fused — Tue, 16 Oct 2007 21:08:40 GMT

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.

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=2654

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&message.id=2661

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

Anonymous — Tue, 16 Oct 2007 21:23:08 GMT

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