topic Re: Collection account removed improve mortgage scores? in Understanding FICO® Scoring

Collection account removed improve mortgage scores?

House2021 — Tue, 16 Mar 2021 01:08:47 GMT

Will removing a collection account improve Mortgage ficos? I have monitoring so I know it did nothing for my regular Fico as there are other collections, but will getting a collection deleted improve mortgage ficos?

Re: Collection account removed improve mortgage scores?

Anonymous — Tue, 16 Mar 2021 01:29:48 GMT

@House2021 wrote:
Will removing a collection account improve Mortgage ficos? I have monitoring so I know it did nothing for my regular Fico as there are other collections, but will getting a collection deleted improve mortgage ficos?

If you can get all the CAs deleted, it should help your scores.

Who are the CAs?

I started with well over a dozen CAs and with each one that has come off, I have seen little to no gain for it. I have 3 remaining on each bureau.

My SO also started with several CAs, not as many as me, and when the very last one was removed from 2 of the bureaus, he got very nice score increases 30-40pts +/-. He still has 1 CA on 1 bureau. Once I finally get around to PFD, I assume he will also get a nice score bump there, too.

Re: Collection account removed improve mortgage scores?

Anonymous — Tue, 16 Mar 2021 04:15:51 GMT

If someone has multiples of any level derog/delinquency of around the same age, they shouldn't expect to see any score gain from the removal of just one.

Re: Collection account removed improve mortgage scores?

tooleman694 — Tue, 16 Mar 2021 16:09:05 GMT

When I removed our last one, the mortgage scores went up like crazy.

Re: Collection account removed improve mortgage scores?

House2021 — Tue, 16 Mar 2021 16:46:29 GMT

What if you remove all the collections but still have charge offs on your report? Will it still raise a lot whe. The last collection is removed, or not until the very last negative items removed?

Re: Collection account removed improve mortgage scores?

Anonymous — Tue, 16 Mar 2021 17:54:00 GMT

The last negative item. CAs and COs are both major negative items, so having any present at all will severely impact your scores. It always goes by your worst severity negative. If you had something like 1 CO and 1 30D late payment on your CR and got the 1 CO removed, you'd go from having your worst severity negative being a major to being a minor (30D) which could then result in a score gain even though a negative still exists.

Re: Collection account removed improve mortgage scores?

House2021 — Wed, 17 Mar 2021 02:42:20 GMT

4 are with Midland MCM, 4 are withPortfolio PRA, and one is with Fidelity Creditor Services, I know MCM and PRA PFD, and I'm trying really hard to get Fidelity disputed off

Re: Collection account removed improve mortgage scores?

Anonymous — Wed, 17 Mar 2021 03:37:56 GMT

@House2021 wrote:
What if you remove all the collections but still have charge offs on your report? Will it still raise a lot whe. The last collection is removed, or not until the very last negative items removed?

Yes. While they are both major derogs, they are seperate. My SO still had 2 COs (both unpaid) on his CRs and when his last CA was removed his scores definitely increased significantly.

Re: Collection account removed improve mortgage scores?

Anonymous — Wed, 12 May 2021 23:34:08 GMT

One very important thing to keep in mind is that the FICO 8/9 versions ignore collections of less than $100. The mortgage scored DO NOT ignore them. I have a $67 collection from 2016 that was paid on time with the original creditor prior to the due date (with receipt in hand). I've tried for 5 years to get it removed with no luck. It only exists on Equifax and that mortgage score is still suppressed due to it.

My Equifax 8/9 scores are solid, but my Equifax 5 (mortgage score) is not. If you got items of less than $100 removed and didn't see your Fico 8/9 scores move, don't be discouraged. Your mortgage scores will be affected, in a positive way. But, what @Anonymous is telling you is correct. If you have 4 collections from around the same time period and have 3 of them removed, your worst derogatory is still a collection of the same age. I would expect very modest gains, if any. When that last one drops, it could be 50 to 100 points on the mortgage scores.

Re: Collection account removed improve mortgage scores?

House2021 — Thu, 13 May 2021 01:25:45 GMT

I'm the original person that posted. Oh they are all more than $100. I had success in getting 5 of 9 collections removed, had small increase of a few points when 5-8 were removed, now I'm down to my last four and it's been 30 days exactly since they were paid, so any day now and I'll get my last collection off, all I care about are the mortgage scores, I need 29 points, I'm needing to get those between these coming off and 3 charge offs being paid ($693/$700 limit, $1355/$1000 and $3100/$2500) that will leave me still with one unpaid charge off

Re: Collection account removed improve mortgage scores?

Anonymous — Thu, 13 May 2021 01:58:38 GMT

I'm in the same boat and this is my 3rd time through.

There could be other ways or strategies that compliment the collections coming off. I hope you know that a collection being PAID really doesn't help, and can worsen things in some cases. Hopefully you are requiring them to DELETE it in exchange for payment. If they won't agree to delete it, don't pay it.

Re: Collection account removed improve mortgage scores?

Anonymous — Thu, 13 May 2021 02:00:56 GMT

And if those last 4 are PFDs, you will have a huge bump of it's your last derogatory. The 29 should be very, very doable.

Re: Collection account removed improve mortgage scores?

House2021 — Thu, 13 May 2021 02:20:15 GMT

Oh I did the pay for delete and called PRA today they said it should be off any day now they requested deletion, it's not my only derogatory, just my last collection, I don't have a BK or foreclosure, but still have those charge offs that will report paid, but they were 90+ day lates and charged off 5 years ago.