topic Re: Collections accounts with under $100 balance. in Understanding FICO® Scoring

Collections accounts with under $100 balance.

Anonymous — Tue, 22 Feb 2011 01:50:58 GMT

I just read that FICO does not factor in a collections account if the balance is under $100. This seems generous, if true. I ask because I fought tooth and nail to get a PFD letter for a $74.00 CA from my local unversity that reported me in May 2010. I've been anxiously waiting for it to clear from my reports to see what kind of bump I get. Am I going to be disappointed?

Re: Collections accounts with under $100 balance.

llecs — Tue, 22 Feb 2011 02:05:49 GMT

@Anonymous wrote:
I just read that FICO does not factor in a collections account if the balance is under $100. This seems generous, if true. I ask because I fought tooth and nail to get a PFD letter for a $74.00 CA from my local unversity that reported me in May 2010. I've been anxiously waiting for it to clear from my reports to see what kind of bump I get. Am I going to be disappointed?

It's my understanding that the newer FICO models, FICO08, will exclude collections less than $100. However, since it was only rolled out a couple years ago, you'll be very hard-pressed to find a lender who is using that FICO version. Even if you found a lender who is using it, it'll still report and that lender can decide whether or not to factor that collection into their lending decision (though many won't). I'd keep trying with the PFDs or consider down the road to PIF and then start with the GWs.

Re: Collections accounts with under $100 balance.

AndySoCal — Wed, 23 Feb 2011 02:56:10 GMT

Ilecs is correct that is the FICO 08 score only. This for a single collection account not multiple accounts. Here is link to anarticle on the new FICO 08 score.

http://credit.about.com/od/creditreportscoring/a/fico-08.htm

edited to link for more information