How do creditors judge age of Collections?

[Anonymous]

I have two Collections (unpaid, dispute):

Midland for Household Bank
On my TU report (MyFico) it says Date Assigned is 11/05 (and reported recently since disputed/updated). The other dates are 'unknown'. When I first pulled this from freecreditreport.com it had more info, inlcuding the fact that it was due to go off on 7/08, and that it was first in collection in 12/01.

One reason I disputed was because I know it was in default well before that, possibly in early 2000. In any event, it is an old Collection Account.

For whatever reason, MyFico doesn't show this and I am hoping that for both scoring purposes and manual review it is clear it is a 7 year old account.

Professional Collections for PacBell
Shows Date Opened as 11/05, Date of Last Activity as 1/02 and off as of 1/09.

Do score and manual review show this as a 6 year old Collection?

I want to apply for new credit to rebuild and wondering how much these are going to hurt me.

FYI on both I made payments to CA in November.

I'm trying to figure out also whether to do a PFD or just let these die in the next year.

Message Edited by nyccc2 on 02-06-2008 07:52 PM

[haulingthescoreup]

Hi, nyccc2, the Understanding FICO Scoring board deals more with the tweaking of your FICO scores, and the math that drives this. When you are dealing with questions about collections, your post will do better on General Credit Issues.

[Anonymous]

Many creditors criteria will just plain deny for unpaid collections-

Just like FICO - it make a bigger difference when it was last "REPORTED" as even though it is a 6 year old collection- if it was reported 2 months ago (and they can do this) it looks like a 2 month old collection-

This will smack around your FICO and discourage many lenders from taking a chance on you-

PFD or waitting for them to drop are the best ways FICO wise to handle collections-

[Anonymous]

To answer the rest of you question-

I want to apply for new credit to rebuild and wondering how much these are going to hurt me.

30 to 100 points.- In credit repair - you need to either eliminate the baddies, dilute the baddies (with other positive TL's) or both.  

FYI on both I made payments to CA in November

In most states this reset the SOL and they could come after you and sue you for the balances- this makes a PFD and even better option.

[granny031350]

so for the purposes of fico scoring, the formula looks at the status date to put into their calculation and the more recent the bigger hit to the score.  So my disputes just lowered my score even though they all fall off this year, the last one being in oct.  which at that point, fico can't use them in the score calculation because they will no longer exist.  Is this the same with derog accounts in dispute as well?  Fico would look at them as more recent because they were updated by the cra with your dispute?  Kind of like a catch 22 cause you want the stuff to be accurate but in doing so you lower your score.  That explains why my experian score dropped like a rock.

[Anonymous]

You are right on with the CA's- "How recent and how severe" is how they are scored.

With other derog tradelines- if nothing but the "reported date" is changed, I would not expect any score change. 

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granny031350 wrote:

so for the purposes of fico scoring, the formula looks at the status date to put into their calculation and the more recent the bigger hit to the score.  So my disputes just lowered my score even though they all fall off this year, the last one being in oct.  which at that point, fico can't use them in the score calculation because they will no longer exist.  Is this the same with derog accounts in dispute as well?  Fico would look at them as more recent because they were updated by the cra with your dispute?  Kind of like a catch 22 cause you want the stuff to be accurate but in doing so you lower your score.  That explains why my experian score dropped like a rock.

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[Anonymous]

Hi, I have heard varying opinions about SOL, the consensus seems to be that making payments to a CA does NOT re-set the SOL, while payments to a CO might.