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Fair collections and Outsourcing gamble and my story

New Contributor

Fair collections and Outsourcing gamble and my story

Ok. Well my rebuild journey started in August of this year with starting Ficos of around 550 across all boards. Here is what I learned so far. I had 6 collections open with Rash Curtis and Associates for some 3-4 yr old hospital bills. Some as little as $50 and one as high as $1200 for a total of $2200 that I did a pay for delete. I also did a pay for delete on a 3 yr old utilities collection. Luckily 1 cable collection just vanished a couple years early for some reason. I had one huge collection excluded early from my accounts from this brutal Fair Collections and Outsourcing for 9K but still have two of them. 1 is for $175 that I can do an early exclusion for in May 2018 and the other for $550 on May 2019. Fair Collections have been reporting charge off every month without fail for years. Today I took a gamble and paid off the last 2 collections from them in hopes of clearing my credit report of my last collectoions. I’m assuming it won’t help my score much if it all, but I hope it doesn’t tank it either. I’m hoping since they are still reporting every month that whatever damage is done and currently being done is already there and my scores should not dip too badly. What do you all think? Maybe now my scores will stop being weighed down and can rise higher? Or they’ll crap out once it reports paid in full.

It’s been an interesting ride these past few months. My Score graphs look like shark teeth but they are steadily rising.

From mid 550’s
I’m now at:
Equifax 684
Transunion 691
Experian 662....... it doesn’t like my moves.

I had one secured credit card from Wells Fargo for a year that finally became unsecured. Then tried my luck with CapOne

Quicksilver one $300 no luv yet ???!!!!
Merrick dbl your line $700 5 months to dbl.
Wells Fargo $2000
Citi double cash $2000
Discover It 1600
Amex blue cash everyday $500
Amex PRG charge card

Now gardening for a long while. It’s been a busy few months.

Sooooooo things I learned:
PFD works wonders, but it seems only medical and utilities companies are willing to do it. And Fair Collections and Outsourcing sucks. As in life hard work does wonders m, but a little bit of luck is also needed.


Hope this helps anyone. Wish me luck. I’ll post back to see what paying in full did to my scores.
Message 1 of 8
7 REPLIES
Regular Contributor

Re: Fair collections and Outsourcing gamble and my story

What do you mean Experian didn't like your moves?

Message 2 of 8
Regular Contributor

Re: Fair collections and Outsourcing gamble and my story

Congrats on your rebuild!

GL with FCO...keep me posted if you have any luck slaying that dragon lol. I have approx. 1 1/2 yrs. left before I can try my luck with "arguing" the NY five year statute of limitations lol. They're my only collection, and I hate dealing with that company, so I'm letting it age off.

My debt was already paid prior to my rebuild, so I'm not sure how my scores were affected, so I'm no help there...sorry.

**PERSISTENCE & PATIENCE** NFCU Amex $25K || NFCU GoRewards $24K || Macy's $11.5K || NLOC $6K || CO QuickSilver $5750 || Amex ED $3K || USAA Pref. Cash Rewards $2.5K || HHFCU Plat. CC $2K || US Alliance Sig. LOC $2K || Zales $1750 || Discover IT $1500 || VS $500

TOTAL: $85.5K
Message 3 of 8
New Contributor

Re: Fair collections and Outsourcing gamble and my story

Ok. Well I paid the old collections and here is what happened after they posted.

Exp stayed 662
Trans stayed 691
Eq dropped 5 points to 682

HOWEVER. I had tremendous success with improving my Fico 9. It jumped Equifax to 762 and Transunion to 770. With that I was able to join PenFed to refinance my 45k car loan from 10% to their best present rate of 2.99 for 60 months. Open a checking and savings account and get approved for a 10k SL /on their 2% cashback CC all for 1 HP.


Message 4 of 8
Regular Contributor

Re: Fair collections and Outsourcing gamble and my story

Congrats on your successes! That's an awesome rate & SL! I'm waiting to get over the 700 hump so that I can refi my car...not sure which company to use yet. Maybe Penfed now...lol! When I received my first EQ Fico 9 score with NFCU, it was 20+ more points than my 08 score, so yeah...definitely happy Smiley Happy
**PERSISTENCE & PATIENCE** NFCU Amex $25K || NFCU GoRewards $24K || Macy's $11.5K || NLOC $6K || CO QuickSilver $5750 || Amex ED $3K || USAA Pref. Cash Rewards $2.5K || HHFCU Plat. CC $2K || US Alliance Sig. LOC $2K || Zales $1750 || Discover IT $1500 || VS $500

TOTAL: $85.5K
Message 5 of 8
Regular Contributor

Re: Fair collections and Outsourcing gamble and my story

It helps fico 9 more because under that system paid collections and judgements are treated like they never existed for purposes of that system. So when you pay a baddie it’s magically not counted anymore. That is why its having little luck being adopted by more businesses. I do, however, personally favor a system that treats paid medical debt different than any other debt. You didn’t sign a contract to pay under those bills. So I believe they don’t really count the same as showing your likelihood to pay. Medical bills can swamp anyone.



Starting Score: 600
Current Score: Exp = 703 Tran = 706 Equ = 710
Goal Score: 800


Take the myFICO Fitness Challenge
AAoA Exp = 12.2 Equ = 7.5 Tra = 7.4
Inquiry Exp = 1 Equ = 0 Tra = 2
Message 6 of 8
Established Contributor

Re: Fair collections and Outsourcing gamble and my story

CapitalOne over the past several months have started to show that they want to see significant usage on their cards to consider you for a CLI.  With my Venture, I never got above 50% of my CL (paid for most of my wedding on the card, got the miles, then paid it off from savings so no interest), and they gave me a $3000 CLI when I asked.

 

My Quicksilver was left to idle, with an occasional small lunch purchase.  They declined my CLI request due to insufficiant use of my credit limit.

Venture: $18K | Amex ED: $18K | Amex BCE: $15K | NFCU CR: $15K | IT #1: $14.5K | Wells Fargo: $11K | Savor: 10K | Cap1 QS: $8.5K | Barclays Rewards: $7.75K | IT #2: $6.8K | MLife: $6.5K | Sportsman's Guide: $5.9K | NRA: $5.5K | Elan Plat: $2.3K | Cap1 PS: 2K | TRV: $2.5K | Cabela's: $1K


 


Current FICO 8 Scores: EQ: 728 | TU: 736 | EX: 726


Message 7 of 8
Regular Contributor

Re: Fair collections and Outsourcing gamble and my story

I love Fico9 for not counting my one annoying collection; can't wait for more companies to get onboard. Wishful thinking, I know. I agree with you on medical bill reporting.
**PERSISTENCE & PATIENCE** NFCU Amex $25K || NFCU GoRewards $24K || Macy's $11.5K || NLOC $6K || CO QuickSilver $5750 || Amex ED $3K || USAA Pref. Cash Rewards $2.5K || HHFCU Plat. CC $2K || US Alliance Sig. LOC $2K || Zales $1750 || Discover IT $1500 || VS $500

TOTAL: $85.5K
Message 8 of 8