A question about deleted collections

Anonymous · ‎11-20-2010

About 40 days ago I sent off letters equifax (as well as TU and EX) concerning several negative items on my credit report. Just yesterday I recieved a letter back from equifax with very good news. They deleted 5 collection accounts off my report. They also changed 2 of my accounts to show as paid in full. I immediately got excited! I just KNEW my credit score had to increase significantly. So i checked my credit score today and it shows up as 519. This was only an 8 point increase in my credit score!! Anyone have any ideas why such a small increase in score? Did i check my score too soon...perhaps it just hasn't hit my score yet?? I have been current on ALL payments for over 2 years now. I haven't opened any new lines of credit. Thanks everyone for your help.

RobertEG · ‎11-20-2010

Hi, raiderred. FICO does not score what is not in your CR, it scores what is still in there,

The deletion of 5 CAs is certainly a significant step. But the update of two CAs to now show paid in full has zero FICO impact.

FICO scores any CA in your CR as a major derog, whether paid or unpaid.

There was an OC behind each deleted or paid collection. Their FICO scoring is not deleted by CA deletion.

Is prior OC reporting still there?

What is needed is a full list of all remaining delinquencies and derogs reported by either an OC or CA that remains in your CR.

LIGHTNIN · ‎11-22-2010

to the forums,you have came to the right place.

Why were the 5 CA's deleted? were they too old and passed the CRTP(credit reporting time period)?

If thats the case, that might be where the 8pts came from, because collections from CA's hurt your CS the most in the beginning of the 7.5yr run, then hurt less as time goes on, and by the time the CA's are 7.5 yrs old only hurts a CS a little if nothing at all.

What did you mean by "changed 2 of my accounts to show as paid in full"? Are these CA's or CC accounts.

Do you have any other baddies on your CR's?Do you have any CC's and are the balances?

Congrats on having been current on ALL payments for over 2 years now.

Thats a great start to rebuilding your credit.Keep up the good work.

I would suggest studying, how a FICO score is calculated and what improves a FICO score.

You can find this info under the blue taps at the top,Financal Help Center and Education.

Also hang out on the board..Understanding FICO Scoring.....Look forward to seeing you again and helping you improve your CS.

FICO Dec 2025 EQ760~~Live below your means and always keep an emergency fund -Love Everybody ~ Big Kenny ~ Big and Rich ~~~~~Credit Scoring 101 - Common Abbreviations - Freq Req Threads - Free Credit Reports - What Steps Do I Take?DV? PFD?

Anonymous · ‎11-22-2010

@LIGHTNIN wrote:
to the forums,you have came to the right place.

Why were the 5 CA's deleted? were they too old and passed the CRTP(credit reporting time period)?
If thats the case, that might be where the 8pts came from, because collections from CA's hurt your CS the most in the beginning of the 7.5yr run, then hurt less as time goes on, and by the time the CA's are 7.5 yrs old only hurts a CS a little if nothing at all.

What did you mean by "changed 2 of my accounts to show as paid in full"? Are these CA's or CC accounts.

Do you have any other baddies on your CR's?Do you have any CC's and are the balances?

Congrats on having been current on ALL payments for over 2 years now.
Thats a great start to rebuilding your credit.Keep up the good work.

I would suggest studying, how a FICO score is calculated and what improves a FICO score.
You can find this info under the blue taps at the top,Financal Help Center and Education.
Also hang out on the board..Understanding FICO Scoring.....Look forward to seeing you again and helping you improve your CS.

Can any one verify this? I read it all the time and see many state it. I just can not justify this IME.

IME I only had 1 collection that was a major negative and while it did make my scores tank, I never did gain points back as time went on because the collection aged. Yes If I opened new account or changed my utilization I had change in scores, but the only time I have seen my scores change from a collection was when it was removed from my CR's with an increase of 89 points.

RobertEG · ‎11-22-2010

I see no real evidene of substantial reduction on credit scoring for a CO or CA until it is gone. Unfortunately, since the FICO scoring agorithm is a proprietary trade secret, only Fair Isaac can give a definitive answer to this question. Since the gauging of CA impact over time requires comparison over great periods of time, often years, when so many other things are going on with your credit report, makes it extremely difficult to take anecdoctal experiences, and attribut them to CA aging.

I think one thing is pretty certain. A CA is a major derog, and thus keeps you in a "dirty" scoring bucket until it is gone.

Anonymous · ‎11-22-2010

Thank you Robert.

Anonymous · ‎11-22-2010

Here is what myFICO has to say about how long negatives will affect a score:

For all of these negative items, the older they are the less impact they are going to have on your FICO® score. For example, a collection that is 5 years old will hurt much less than a collection that is 5 months old.

Here is where I found that information: Negative Items on Credit Report.

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 10/10-813, TU - 10/10-774

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

LIGHTNIN · ‎11-22-2010

Hi JM-AM, Thank you for your post, That's what this site is all about, people sharing their experiences.The good, bad and the ugly.

IME, I had several collections on my CR at any given time,but the last one dropped off after 7yrs earlier this year and I didn't get any score increase..zero zip nana.But that's better then a score decrease.

Wow, 89pts that's great. Just so I understand correctly,the points you received was from a collection that was on your CR for the full 7.5yrs correct?

Or did you have it removed earlier?

Thanks again for sharing your results with us.

FICO Dec 2025 EQ760~~Live below your means and always keep an emergency fund -Love Everybody ~ Big Kenny ~ Big and Rich ~~~~~Credit Scoring 101 - Common Abbreviations - Freq Req Threads - Free Credit Reports - What Steps Do I Take?DV? PFD?

Anonymous · ‎11-22-2010

@LIGHTNIN wrote:
Hi JM-AM, Thank you for your post, That's what this site is all about, people sharing their experiences.The good, bad and the ugly.

IME, I had several collections on my CR at any given time,but the last one dropped off after 7yrs earlier this year and I didn't get any score increase..zero zip nana.But that's better then a score decrease.

Wow, 89pts that's great. Just so I understand correctly,the points you received was from a collection that was on your CR for the full 7.5yrs correct?
Or did you have it removed earlier?

Thanks again for sharing your results with us.

I agree with you, I am always learning something new, and always great to hear (read) others experiences even if they do not always agree.

It is okay LIGHTNIN since my experience only having the one collection makes it a little easier to keep track of the progress. Yes the collection was on my report for 7.5 years with absolutely no change in scores. I did have a few dings for UTIL when exploring and when opened new accounts. But they were very small 2-14 points which rebounded with-in a few months. When collection fell off I was actually surprised with how much my scores increased, because of reading how it has less of an impact. My scores are all sitting at a decent level now since rebuilding last 3 years 749 TU and 755 EQ and honestly with-out reading these forums and learning from others experiences I would probably still be in the toilet!