topic Re: Collection deleted + 3 new accts. -14 FICO in Rebuilding Your Credit

Collection deleted + 3 new accts. -14 FICO

kay82 — Sat, 20 Dec 2008 18:26:06 GMT

I dont get it, I got a secured card in 2007 will not graduate put all of the money 500 limit just a lousy secured card thats all it will ever be!!! had 1 store card since 2000...due to my not having to much knowledge about credit back then I closed lots of good accounts thinking it would raise my score...Fast forward

Pulled report on 12-05-08 fico was 654, with 2 collections so I dispute one it gets removed, and in nov. I opened 3 new accounts to include a target macys & hooters. So I check my fico again this morning thinking Ive accomplished something and should get some points back from that collection being deleted....

OF COURSE NOT I lost points my fico is now 640 .......super bummed so I get the urge to apply for a juniper sea miles card just to see if Im still in the decent range to even get a TL and u guessed it DENIED.......I dont get it... I freakin give up I swear !!!

Re: Collection deleted + 3 new accts. -14 FICO

miltfel1234 — Sat, 20 Dec 2008 18:34:49 GMT

I am still new at this credit thing myself. How old was your collection? Sometimes they are factored into your length of credit history. So if it was deleted, you could have lost points, for losing some of your history length. If you just opened three new accounts, this could have also lowered your average age of accounts. I hope that made since. I had the same thing happen to my DH a while back.. Hang in there it will get better as the accounts age. Don't give up, it will get better!!!

Re: Collection deleted + 3 new accts. -14 FICO

kay82 — Sat, 20 Dec 2008 18:45:22 GMT

Thanks ..the collection was from 04- 2007 I have history since 99 so Im not sure what happened, I just feel like a loser

Re: Collection deleted + 3 new accts. -14 FICO

Anonymous — Sat, 20 Dec 2008 18:45:29 GMT

The reason why you saw a score drop and a denial on the 4th card is because you just opened 3 new tradelines and your average account age has decreased. Don't give up, you will see a good score boost in six months as long as you keep a low util. on the cards and pay on time. My suggestion is to stop applying for 6-12 months and establish some good payment history, only then I would ask for a credit limit increase on the existing cards.

Re: Collection deleted + 3 new accts. -14 FICO

kay82 — Sat, 20 Dec 2008 19:10:56 GMT

Ok thx roberts I will give it a shot.....I thought by adding a new TL that would raise your score a bit

Re: Collection deleted + 3 new accts. -14 FICO

Anonymous — Sat, 20 Dec 2008 19:32:09 GMT

If you have no revolving credit or that specific type of credit you added, it usually does help your report.

However, you added accounts(decreasing AAoA), plus you got dinged for "new credit and inquiries".

What is your revolving util? For max points, keep it between 1-9%, with half or less of your cards reporting balances, and those that do report a balance, keep the individual util between 1-9%.

As for the collections counting in age(someone mentioned), collections reported properly are NOT counted in age.

My advice would be, unless you need to apply for credit, would be to just let things age for ahwile, inquiries to get at least 1 year old, new accounts to get at least 1 year old, and then see how things look.

You said you were able to get 1 collection removed, what about your other? Is it paid? If unpaid, is it beyond SOL or can you PIF? Is it accurate?

Re: Collection deleted + 3 new accts. -14 FICO

Anonymous — Sat, 20 Dec 2008 19:33:08 GMT

Yes, in the long run it helps you out BUT when you first get approved your average account age decreased which decreases your score, also you have put 4 new hard inquiries on your credit report which lower(only by a few points) your score. The fact that you got 3 new credit cards is great news and you should be proud of your accomplishment but what will make it even better if you can keep all those new cards in good standing. Be happy because in the next 6 short months you will see a good score boost. Chin up, you got good things coming.

Re: Collection deleted + 3 new accts. -14 FICO

daisy245 — Sat, 20 Dec 2008 20:24:42 GMT

As for the collections counting in age(someone mentioned), collections reported properly are NOT counted in age.

Collections are not supposed to count for age? I am having same problem. I have a medical collection that shows it is helping my score because it is my oldest account. On the other hand, it shows it hurst because it is a collection. It is listed under Credit History for oldest and newest account. How is it supposed to be listed?

Re: Collection deleted + 3 new accts. -14 FICO

Anonymous — Sun, 21 Dec 2008 00:04:01 GMT

daisy245 wrote:
As for the collections counting in age(someone mentioned), collections reported properly are NOT counted in age.

Collections are not supposed to count for age? I am having same problem. I have a medical collection that shows it is helping my score because it is my oldest account. On the other hand, it shows it hurst because it is a collection. It is listed under Credit History for oldest and newest account. How is it supposed to be listed?

Is it a myFICO report that is telling you that it is helping?

Is it listed under collections by a CA?

Re: Collection deleted + 3 new accts. -14 FICO

daisy245 — Sun, 21 Dec 2008 00:27:56 GMT

It is on my equifax scorewatch report and yes, it is listed under collections.

Re: Collection deleted + 3 new accts. -14 FICO

Anonymous — Sun, 21 Dec 2008 00:35:49 GMT

daisy245 wrote:
It is on my equifax scorewatch report and yes, it is listed under collections.

You have SW through EQ and not this site? Just want to clarify.

The majority of the times, the "tips" that other places give you regarding what is/isn't helping your score are wrong.

I know when I pull my report from EQ, it used to list a collection as being my oldest account, but when I got my report here, it should my oldest account being the same age as my oldest TL being reported by an OC, not the collection.

Re: Collection deleted + 3 new accts. -14 FICO

daisy245 — Sun, 21 Dec 2008 01:02:54 GMT

I get my scorewatch reports from equifax. I pay a monthly fee for their service. Myfico has scorewatch? Is it better than equifax's?

Where do you go to buy it?

Re: Collection deleted + 3 new accts. -14 FICO

Anonymous — Sun, 21 Dec 2008 01:19:14 GMT

I've never had SW through EQ, so I can't compare the two. You might start a new thread over on General Credit Issues regarding the topic.

I don't know if EQ offers it or not, but when you purchase through myFICO, you get use of a score simulator that you can play around with and determine how your score will change.

I also know that you get analysis of your reports and advice directly from myFICO.

I am double checking as to whether the advice you get on your EQ report from their website is advice that comes from myFICO or not.

To order, check out the Products page.

Always google for a "myFICO discount code" and SW has a 30 day free trial.

Re: Collection deleted + 3 new accts. -14 FICO

daisy245 — Sun, 21 Dec 2008 02:00:21 GMT

Found it. Thanks. It has almost the same info, but more detailed. It seems to be much better and more alerts. It does not show anything about the collection factored into the credit history length. Thanks for your help.

Your Latest FICO® Scores TransUnion

606

Date: 12/19/2008

Equifax

564

Date: 12/20/2008

Experian

612

Date: 12/17/2008

Message Edited by daisy245 on 12-20-2008 05:59 PM

Message Edited by daisy245 on 12-20-2008 06:00 PM

Re: Collection deleted + 3 new accts. -14 FICO

kay82 — Sun, 21 Dec 2008 06:43:43 GMT

@Anonymous wrote:
If you have no revolving credit or that specific type of credit you added, it usually does help your report.

However, you added accounts(decreasing AAoA), plus you got dinged for "new credit and inquiries".

What is your revolving util? For max points, keep it between 1-9%, with half or less of your cards reporting balances, and those that do report a balance, keep the individual util between 1-9%.

As for the collections counting in age(someone mentioned), collections reported properly are NOT counted in age.

My advice would be, unless you need to apply for credit, would be to just let things age for ahwile, inquiries to get at least 1 year old, new accounts to get at least 1 year old, and then see how things look.

You said you were able to get 1 collection removed, what about your other? Is it paid? If unpaid, is it beyond SOL or can you PIF? Is it accurate?

Thanks so much to everyone for the great advice, I will do just that no more apping because I dont need the credit. but since I only had the 2 revolving TL I thought it would help my score to add some more, Im still learning how to play the FICO game but I did app and get cards and took but one hard inquiry to each report Macy's pulled EX Hooters TU and Target EQ so not too many inquiries so now just to sit back and let them age...

As far as the collections go the one deleted was from NCO and they deleted after I requested them to Validate , the other is for Jefferson Capital it has been on my EQ & EX since 2006 they recently just discovered they didnt put it on my TU and it went on about 6 mo. ago its past SOL its from 2003 so Im just going to let it fall off however according to myfico reports they keep reporting me 90 days late every month twice a month a couple times & its a CO ?? I have 83 freakin late payments on my EX thanks to those dirtbags so Im not sure where to go with that