Collections and scores.

[907grown]

Hello, just wondering does one collection or fifteen collections affect the score the same?  I had, believe it or not, 35 collection accts on my credit report.  In doing some major house cleaning, I have made agreements for many many PFD's.  Long story short, over the past 2 months I have had many accts deleted, and a few that were being reported twice and 3 that were not mine taken care of as well.  This has not affected my score at all.  When all is said and done, I believe there will still be about 10 collections, mostly medical stuff, remaining on my report.  I talked to a lady at Myfico and she told me she thought it may take a couple of monthly cycles to update.  Does this sound right?  Will the score go up?  Also, I was able to dispute a judgement that I never should have been a part of, and it was also removed from my report.  Alot of derogs gone.....  I do have a loan with USA funds for school that has gone into default, do you know if it is true that you cannot get a home loan if you have a government loan in default?  I am working with the collection agency and doing a monthly payment plan.  She told me I would need to make 9 payments and then another institution would pick up the remaining amount on the loan and it would be reported as paid.

I have sent GW's to previous creditors that I only had 1 or 2 30 day lates with, hoping for the best there.  If anyone has anymore suggestions as to ways I can keep moving up please let me know.  I think I am on the right track, and making some positive moves, please give me words of wisdom and hope, cause I am working my butt off and spending a lot of time and money on this......  Please let me know that it is for something...

Thanks

[AndySoCal]

The collection agency you ar working on a payment plan with. You say the account will be show as paid  does this mean a paid collection. Depending on how old the colelction account is having it update/re-report as a paid colelction can hurt your score not help it. Be very careful iwth this account.  Ask what the collection agerncy means by that. Also where possible owrk with the original creditor not the collection agency. Some collection agency will tell you anything just to get you to pay it. Also, the more recent the deorgatory information is the more impact it is having on your score.

[Anonymous]

In order to really help your score, the collections need to be removed.  FICO looks at paid and unpaid collections the same.

That also goes for settling and COs.

If you still have negatives on your report just getting some removed will not help that much.  Especially if they were older.  Getting a newer collection removed could give an increase.

As was mentioned, always try to work with the OC if you can.  If you pay the OC they have the power to recall the account from the CA.  You would need to ask them to do this.

For the medical collections, go to Whychat.com or google the HIPPA process.  Medical debt is handled differently than normal collections and goes by the date of service.

Message Edited by guiness56 on 08-31-2009 06:57 AM

[Jazzzy]

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@nyankovic wrote:

Hello, just wondering does one collection or fifteen collections affect the score the same?  I had, believe it or not, 35 collection accts on my credit report.  In doing some major house cleaning, I have made agreements for many many PFD's.  Long story short, over the past 2 months I have had many accts deleted, and a few that were being reported twice and 3 that were not mine taken care of as well.  This has not affected my score at all.  When all is said and done, I believe there will still be about 10 collections, mostly medical stuff, remaining on my report.  I talked to a lady at Myfico and she told me she thought it may take a couple of monthly cycles to update.  Does this sound right?  Will the score go up?  Also, I was able to dispute a judgement that I never should have been a part of, and it was also removed from my report.  Alot of derogs gone.....  I do have a loan with USA funds for school that has gone into default, do you know if it is true that you cannot get a home loan if you have a government loan in default?  I am working with the collection agency and doing a monthly payment plan.  She told me I would need to make 9 payments and then another institution would pick up the remaining amount on the loan and it would be reported as paid.

I have sent GW's to previous creditors that I only had 1 or 2 30 day lates with, hoping for the best there.  If anyone has anymore suggestions as to ways I can keep moving up please let me know.  I think I am on the right track, and making some positive moves, please give me words of wisdom and hope, cause I am working my butt off and spending a lot of time and money on this......  Please let me know that it is for something...

Thanks

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I believe you are talking about your school loan here, right? If so, I think you are doing the right thing. What other posters have said about being careful when working with CAs is true, but there are rules in place for rehabbing school loans that allow your record to be cleared once you successfully pay for a period of time. You might want to do some reading on the school loan forum. I believe many posters have followed this plan with great success.

It sounds as if you've put in a lot of work on this...and, yes...it will pay off. Patience in waiting for the reporting and for old bad entries to fall off is hard. Take a deep breath, keep fighting the good fight, and your scores will reflect your hard work.

[Anonymous]

OP   yes it is true you may not be able to get a job with most compaines if you default on a govement /  no private studnet loan.   please google student loan defult listing,  there is a place/ system that employers can check on and if you are listed there they cannot employ you.

More over true you may not  qualify for a mortgage

[Anonymous]

It is very important that you rehab a student loan if at all possible. Inquire about the process now.