MyFico 3Bplus Credit Report Question

[FireMedic1]

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@Anonymous wrote:

Hi FireMedic

I downloaded WalletHub, it's a great app. One thing though, it's saying if I pay a collection the score will go up 4-9 points, it's using Vantage Score, nothing like Fico. Question is if I pay off a collection will the Fico score increase? I was reading a while back, Fico score will only increase if the collection account is removed from credit report.

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The simulators are basically worthless on any site.  Even on MyFICO. Like I posted I use Wallethub to see when TU finally updates my balances before I do my monthly 3B pull so it isnt wasted because TU is slow at times, I mean is slow most of the time.

[Anonymous]

Here is the answer to your concern: If the original creditor sold the debt because you defaulted, then find that debt collector and payoff as soon b AZ you can. The original creditor will not remove that debt--it sticks for 7 yrs. However, the collection agency that bought the debt must then remove that tradeline once you settle that debt. Once it's removed, you should see a healthy bounce in your credit score---assuming the original creditor charged this off at least 2-3 years before selling your debt. Makes sense?
I'm talking from experience--- I just had a 26 point bounce in EQUIFAX.COM and TU. I'm just waiting on EXPERIAN to remove it.

Good luck

[iv]

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@Anonymous wrote:
However, the collection agency that bought the debt must then remove that tradeline once you settle that debt.

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"Must remove"?

No.

Normal practice would be to leave the collection reporting - while you may be able to come to an agreement with them to remove it after payment/settlement, they are in no way required to do so.

[Anonymous]

Sorry. I shouldve been more specific. I just had a charge off removed by a debt collector--Cavalry Portfolio. They bought my Synchrony account and was reporting it for over 3 years. I settled and they remove their collection/tradeline. The original Synchrony CO remains for 7 years. Just for anyone reading this: Cavalry and Portfolio Recovery Associates do remove their collections once settled, per their company policy.

[Anonymous]

Oh, glad to hear. I’ll be paying a Portfolio Recov account soon. I already paid 3 others off pretty recently. Thanks for all the replies, happy holidays out there. Be kind to each other

[Anonymous]

One of the three I paid is a DEROG that had a credit util that has been eating away at score ever time cause they have been reporting it every month. Not sure once it’s reported as paid if score will get a nice increase or nice increase when it possibly gets removed. Every time I call a collection company they say we don’t do pay for delete letters lol

[Anonymous]

Ok. So here is how my situation worked out. I visited the websites of the debt collectors and read their policy. I know for a fact that Cavalry Portfolio and Portfolio Recovery Associates remove their tradeline upon settlement is received. I know this is a fact because their tradeline (which is the debt they bought) fell off my EQUIFAX and TRANSUNION credit report. My score went up 27 points across the board. Right now, I'm just waiting on EXPERIAN to update. I'm not sure who is/are your collection agencies and what their rules are.

[Anonymous]

That’s a good thing, 27 is a lot... I have to go back to other topics I posted to read what someone said about the DEROG that has credit util cause I don’t remember.