topic Re: Collection Account Question FICO Scoring in Understanding FICO® Scoring

Collection Account Question FICO Scoring

Anonymous — Tue, 13 Jan 2009 19:53:30 GMT

Okay, I finally was able to pull a FICO score (since my credit has aged enough to allow me to). I have 4 bad things: Collections - Age of Accounts - Usage 30% - Recent Collection. I understand the first three reasons.

The one I do not understand is the "Recent Collection: You had a collection open 1 year and 1 month ago"

My collections were reported to the Credit Bureaus on Dec of 2007, but they are from accounts from 2005... in fact DOLA shows Sep 2005 and Oct 2005 on them. Does FICO use the date they were reported by the CA? I thought everyone used the DOLA/DOFD to determine the age of the collection... could someone help me with this one.

Re: Collection Account Question FICO Scoring

fused — Tue, 13 Jan 2009 21:44:13 GMT

Was this an EQ report/score?

Re: Collection Account Question FICO Scoring

Anonymous — Tue, 13 Jan 2009 22:01:49 GMT

Hi Fused, no it was my TU. I paid for the quarterly monitoring. I thought that was the best deal for right now.

I am just bummed that they are listing the date the collection was added to my report (12/2007) instead of the date I actually moved and forgot to pay my last electric bill.

Re: Collection Account Question FICO Scoring

fused — Tue, 13 Jan 2009 22:05:35 GMT

In FICO scoring, "recent" mean less than two years old. I think the FICO gods are treating this as a newer collection. The same thing can happen if a ruthless CA reports (updates) an old collection monthly.

Re: Collection Account Question FICO Scoring

Anonymous — Tue, 13 Jan 2009 22:23:51 GMT

Here is what it looks like. I took out the CA's name to protect my "secret identity" LOL

Collection agency [?] BLANK ON PURPOSE Original balance [?] $121 Current balance [?] $0 Status [?] Not Reported Date assigned [?] Mar 13, 2006 Date reported [?] Dec 01, 2008 Date last active [?] Not Reported Date paid [?] Jun 16, 2008 Date closed [?] Jun 16, 2008

Message Edited by Pappy214 on 01-13-2009 02:23 PM

Re: Collection Account Question FICO Scoring

fused — Wed, 14 Jan 2009 01:17:13 GMT

Yup, it looks like it's being treated like a new CA.

Re: Collection Account Question FICO Scoring

laz98 — Wed, 14 Jan 2009 07:01:02 GMT

@fused wrote:
In FICO scoring, "recent" mean less than two years old. I think the FICO gods are treating this as a newer collection. The same thing can happen if a ruthless CA reports (updates) an old collection monthly.

that's crap! it's artificially deflating your score! how is that fair?

Re: Collection Account Question FICO Scoring

fused — Wed, 14 Jan 2009 07:11:21 GMT

+1! I agree 100%!

Re: Collection Account Question FICO Scoring

RobertEG — Fri, 16 Jan 2009 08:31:28 GMT

The first thing I would ask is why, if the collection was reported to a CRA back in 2007, are you first hearing about it only from review of your CR? Did they ever dunn you?