topic Re: Collections and Score Volatility in Understanding FICO® Scoring

Collections and Score Volatility

Brian_Earl_Spilner — Fri, 10 Jul 2020 13:50:53 GMT

Just wanted to post something I've been watching for the last month. After paying off all my debt, I have been charging and letting balances post before paying them off. Both TU and EX have been dropping over very small amounts while EQ has held steady. The only difference is EQ does not have any collections. I have 1 chargeoff remaining and I'm curious if when I pay it off, if it will add some stability as well.

Re: Collections and Score Volatility

SouthJamaica — Fri, 10 Jul 2020 15:00:44 GMT

@Brian_Earl_Spilner wrote:
Just wanted to post something I've been watching for the last month. After paying off all my debt, I have been charging and letting balances post before paying them off. Both TU and EX have been dropping over very small amounts while EQ has held steady. The only difference is EQ does not have any collections. I have 1 chargeoff remaining and I'm curious if when I pay it off, if it will add some stability as well.

Are you saying that EQ is a clean scorecard, or are you saying that all 3 bureaus have the chargeoff while only TU & EX have collections too?

Re: Collections and Score Volatility

Brian_Earl_Spilner — Fri, 10 Jul 2020 15:53:48 GMT

@SouthJamaica wrote:
@Brian_Earl_Spilner wrote:
Just wanted to post something I've been watching for the last month. After paying off all my debt, I have been charging and letting balances post before paying them off. Both TU and EX have been dropping over very small amounts while EQ has held steady. The only difference is EQ does not have any collections. I have 1 chargeoff remaining and I'm curious if when I pay it off, if it will add some stability as well.

Are you saying that EQ is a clean scorecard, or are you saying that all 3 bureaus have the chargeoff while only TU & EX have collections too?

Sorry, let me clarify, all 3 scorecards are dirty. 7 late payments and 1 unpaid chargeoff. The only difference with EQ is it doesn't have any collections, paid or otherwise

Re: Collections and Score Volatility

Brian_Earl_Spilner — Fri, 10 Jul 2020 15:55:34 GMT

@SouthJamaica the score jump on EQ was when my last collection was removed from it.

Re: Collections and Score Volatility

SouthJamaica — Fri, 10 Jul 2020 22:21:01 GMT

@Brian_Earl_Spilner wrote:
@SouthJamaica wrote:
@Brian_Earl_Spilner wrote:
Just wanted to post something I've been watching for the last month. After paying off all my debt, I have been charging and letting balances post before paying them off. Both TU and EX have been dropping over very small amounts while EQ has held steady. The only difference is EQ does not have any collections. I have 1 chargeoff remaining and I'm curious if when I pay it off, if it will add some stability as well.

Are you saying that EQ is a clean scorecard, or are you saying that all 3 bureaus have the chargeoff while only TU & EX have collections too?
Sorry, let me clarify, all 3 scorecards are dirty. 7 late payments and 1 unpaid chargeoff. The only difference with EQ is it doesn't have any collections, paid or otherwise

I can only guess, but in view of the striking difference in the graph between EQ and the other 2, and the fact that the only difference between EQ and the other 2 is that the other 2 have collections while EQ does not, it sure looks like the presence of collections has had a serious impact. So I'm guessing that if you can get the collections off of the other 2, you should see comparable score gains on those.

Re: Collections and Score Volatility

Brian_Earl_Spilner — Sat, 11 Jul 2020 01:35:45 GMT

@SouthJamaica wrote:
@Brian_Earl_Spilner wrote:
@SouthJamaica wrote:
@Brian_Earl_Spilner wrote:
Just wanted to post something I've been watching for the last month. After paying off all my debt, I have been charging and letting balances post before paying them off. Both TU and EX have been dropping over very small amounts while EQ has held steady. The only difference is EQ does not have any collections. I have 1 chargeoff remaining and I'm curious if when I pay it off, if it will add some stability as well.

Are you saying that EQ is a clean scorecard, or are you saying that all 3 bureaus have the chargeoff while only TU & EX have collections too?
Sorry, let me clarify, all 3 scorecards are dirty. 7 late payments and 1 unpaid chargeoff. The only difference with EQ is it doesn't have any collections, paid or otherwise
I can only guess, but in view of the striking difference in the graph between EQ and the other 2, and the fact that the only difference between EQ and the other 2 is that the other 2 have collections while EQ does not, it sure looks like the presence of collections has had a serious impact. So I'm guessing that if you can get the collections off of the other 2, you should see comparable score gains on those.

I've been working on it as they're workers comp. I'm ready to call up my attorney so he can have my employer, Gallagher Bassett, Sedgwick, the hospital, and UHC figure it out before I sue someone.

I just don't understand how collections would impact utilization scoring changes.

But this has me curious. I'm going to pay off my chargeoff and see what happens to EX and TU. I expect EQ to finally jump above 700 for the first time in 6 years. I'm curious if there will be a similar effect on scoring once the chargeoff is paid.

Re: Collections and Score Volatility

Anonymous — Sat, 11 Jul 2020 04:44:07 GMT

The 2 with the collection are in a PR scorecard and 1 without is in a delinquency scorecard.

I guess that shows a PR card is more sensitive to utilization than a delinquency card.

Re: Collections and Score Volatility

Anonymous — Mon, 13 Jul 2020 01:06:26 GMT

By the way when was the collection opened?

Wondering if it’s recent or mature PR cards?

When you pay the chargeoff, that should move you to a recent delinquency card on EQ (assuming it’s not regularly reporting and you’re not already there).

I’m not positive what will happen on the others, I think you will stay in the mature PR card, if that’s where you’re at since the PR is more severe.

Edited: I mixed up which bureaus we're on which cards I corrected it.

Re: Collections and Score Volatility

Brian_Earl_Spilner — Sat, 11 Jul 2020 13:51:50 GMT

@Anonymous wrote:
By the way when was the collection opened?

Wondering if it’s a recent or mature PR card?

When you pay the chargeoff, that should move you to a recent delinquency card on the other two (assuming it’s not regularly reporting and you’re not already there).

I’m not positive what will happen on the other, I think you will stay in the mature PR card, if that’s where you’re at since the PR is more severe.

What's a PR scorecard?

2 of the collections are for accounts from 2014, but they showed up a couple of years ago. Probably when the 1 from 2018 started reporting because they're all with the same CA.

The chargeoff updates every month.

Re: Collections and Score Volatility

TheKid2 — Sat, 11 Jul 2020 16:24:33 GMT

@Anonymous is referring to the Public Record scorecard.

When I paid off my last CO that was reporting monthly my EQ went from 667 to 708. I had no collections and was AZE2 on my open revolvers. It seems that you would be similar on EQ and should expect similar results.

Re: Collections and Score Volatility

Anonymous — Sat, 11 Jul 2020 23:51:58 GMT

I have seen my scores weeble wobble upward over the past month going for AZEO too. My scores currently reflect about 94% to AZEO. I should have the 3 reports to AZEO come around 20th of this month if all report timely.

I have one remaining baddy it is on my TU and EX; with my EQ being clean (no lates, no collections, all positives). You can see the point difference down in my signature between EQ(totally clean) and TU/EX with the one remaining collection due to fall off in next 6-8 months.

You can see now the difference that one baddy is making on the two scores...hopefully like you are thinking the scores will even out once baddy gone of TU/EX.

Re: Collections and Score Volatility

Anonymous — Mon, 13 Jul 2020 01:09:35 GMT

Yes PR is public record scorecard. That unpaid chargeoff reporting monthly is whats continuing to suppress your score. Once it’s paid you’ll see that stop.

Re: Collections and Score Volatility

Anonymous — Mon, 13 Jul 2020 01:10:40 GMT

Derogatory scorecards are split into 4: 2 are public record and 2 are delinquency, then out of each group of 2 they are divided into recent and mature.

The 2 with a collection are on a PR card; the other is in a delinquency card.

Re: Collections and Score Volatility

M_Smart007 — Sun, 12 Jul 2020 05:53:45 GMT

@Anonymous, Really enjoy reading your knowledge and wisdom.

I have used some of your stuff to help a few people fix their credit.

Re: Collections and Score Volatility

SouthJamaica — Sun, 12 Jul 2020 12:08:40 GMT

@Anonymous wrote:
Yes PR is public record scorecard. That unpaid chargeoff reporting monthly is whats continuing to suppress your score on those two bureaus. Once it’s paid you’ll see that stop.

I wonder why a chargeoff would be considered a "public record".

Re: Collections and Score Volatility

TheKid2 — Sun, 12 Jul 2020 15:43:22 GMT

@SouthJamaica wrote:
@Anonymous wrote:
Yes PR is public record scorecard. That unpaid chargeoff reporting monthly is whats continuing to suppress your score on those two bureaus. Once it’s paid you’ll see that stop.
I wonder why a chargeoff would be considered a "public record".

I don't believe a CO is in the PR scorecard, it's in the deliquency scorecard. I believe a collection puts you in the PR scorecard.

Additionally, since CO (or 120+) is considered a serious derog that doesn't really improve with age, it likely is in the worst deliq scorecard.

Re: Collections and Score Volatility

Anonymous — Mon, 13 Jul 2020 01:24:16 GMT

@M_Smart007 wrote:
@Anonymous, Really enjoy reading your knowledge and wisdom.
I have used some of your stuff to help a few people fix their credit.

My pleasure indeed! Glad to be of assistance my friend!

@SouthJamaica The chargeoff only is EQ and in the delinquency scorecard, but TU and EX have a collection and are in a PR scorecard. (Sorry edited I probably screwed you up because I had it backwards)

@TheKid2 Severity is split into delinquency or public record. Further segmentation is based on recency, so it's either recent or mature delinquency scorecard.

Re: Collections and Score Volatility

Anonymous — Sun, 12 Jul 2020 23:23:26 GMT

I’m gonna try to talk @Anonymous into making me a little flow chart to explain it graphically.

@Thomas_Thumb has one that he is going to update when he gets a chance, so depending on which happens first.

I think we definitely need 1 for the primer to make it easily understood. Heck, 2 would be better than 1.

Re: Collections and Score Volatility

Anonymous — Mon, 13 Jul 2020 00:55:43 GMT

Speaking of which, PM me please @Anonymous.

Re: Collections and Score Volatility

Anonymous — Mon, 13 Jul 2020 01:33:35 GMT

Apologies to everyone. Due to my lack of sleep, I screwed up the two with the one and stated it backwards, but I went back and corrected my posts.

EQ has no collection, only chargeoff and lates; therefore it is in delinquency card.

TU and EX have a collection and are therefore in PR card.

@Brian_Earl_Spilner was describing the difference utilization has between the two scorecards.

Either way, with paying the chargeoff, your scores will begin to rise, at least as far as they can in those cards. Plus whatever points for utilization you may get. Did you say it was reporting regularly?