@Anonymous wrote:I recently had a 4 year old collection account paid off in exchange for a pay for delete. It has only been a few days so I will not see the impact of the collection account removal on my credit report for a few more weeks (hopefully). The company I had this collection with is Ad Astra Recovery. They have publically stated on their website that all paid accounts more than 2 years old will, in short, be removed from all three credit reports.
I have a 640 FICO score with several credit cards and several loans that are always paid on time. I feel as though this collection account has been holding my score back. I have no other negatives on my report so once this collection account is removed, I'll have a clean report w/ an average credit history of 5 years. I'm impatient when it comes to my credit report being updated so I am hoping someone can shed some light on what type of score increase, if any, I can expect from this negative item dropping off of my report. Unfortunately, there doesn't appear to be any type of simulator for removed derogatory items. Thanks in advance!
If this is your last baddie, then it should be significant. Was it updating every month? What was the amount of the collection, if it was under a $100, then the next statements are mute.
What does your utilization look like on your cards? How many scorable inquires do you have and how old is your youngest? I would think you would be looking at at least 40-50 points. Maybe, even more, depending on your utilization and the age of your youngest. I would like to know so make sure to update once its gone. :-)
I'm far from an expert on all things Fico, but the last one gone gives quite a jump from what I've seen in my file and read around here. A lot depends on which scorecard you get placed into.
If you could get that utilization down to less than 8.9% at the same time, then I think you might bust the 700 club wide open. Will definitely get there in a few months once that youngest gets a little older. Your mortgage score will get a really good boost as it hates collections. I have a paid one on just my Equifax and the mortgage score on it is the only one of all the versions still under 700.