Collection Accounts

[YankeeClipper]

I'm a new poster looking to rebuild my credit. A few quick questions. Do new collection accounts (2-3 years or less from the first report date) have a greater impact on my score then older collection accounts? If so, when does that "high impact" age of a collection account start to fade and have less of an impact? If I have 8-10 collection accounts and was able to have 3-4 of them paid or removed from my credit report would that have much of an impact on my credit score or would those remaining 5-6 collection account prevent much improvement of my FICO score? Thanks in advance for any thoughts or help. 

[chiefone4u]

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@YankeeClipper wrote:

I'm a new poster looking to rebuild my credit. A few quick questions. Do new collection accounts (2-3 years or less from the first report date) have a greater impact on my score then older collection accounts? If so, when does that "high impact" age of a collection account start to fade and have less of an impact? If I have 8-10 collection accounts and was able to have 3-4 of them paid or removed from my credit report would that have much of an impact on my credit score or would those remaining 5-6 collection account prevent much improvement of my FICO score? Thanks in advance for any thoughts or help. 

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Welcome to the forum @YankeeClipper 

Collections tend to hurt the full 7 years, more so if they are updating regularly. 

If you pay/settle the debt, the collection should report a $Zero balance and stop updating allowing it to carry less weight. 

You'll see the best results if you can get the collection agency to do a "Pay for Delete" (PFD). 

If you listed your collections, including the original creditor, collection agency and Date of first default; the members of the forum can help guide you in having your best chance of getting the negative mark removed from your reports. 

[OmarGB9]

Unfortunately collections hurt all 7 years.

And unfortunately getting a few removed but having 5-6 still left does little, if anything, for your score. It's best to always try to negotiate a PFD as mentioned above, though not all CAs offer that. As a last resort, still paying your collections will help, as a paid collection looks better than an unpaid one. 

[FireMedic1]

Could you list who the CA's are? Then we can see who does PFD. You might post that all do PFD. Need more info. Tx.

[YankeeClipper]

Thanks everyone. We're a little overwhelmed right now. We need a lift of about 15-20 points on our FICO for a possible home loan. Credit was/is a mess. We have someone saying they can help but we need to be above 580 on that middle mortgage FICO. One other score is above that. One below by so much it won't make a difference. The middle one is close but not happening as it stands and where we need some expert advise from those experienced on this forum. 

CA's are 1) Portfolio Recovery (multiple accounts), 2) Thomas Agency, 3) Account Recovery Solutions, 4) Americollect, 5) Caine and Weber, 6) Calvary and 7) CBA Collection Bureau.

Five of the accounts were within the last 2 years. I was hopeful if those showed deleted or PIF they might have a higher impact then the older collection accounts that remained and provide us that 10-15 point lift we need to that middle score. However, if I am understanding responses on this post, the remaining older collection accounts that still reported would more then likely prevent that needed 10-15 point lift from occurring. The problem is the total balances on all the collection accounts are more then we could handle on a PIF or even SIF scenario. We are looking at 40k + at a 25% SIF if all of them agreed and financially that is impossible.

Let me know if we are missing anything. If not, if looks like we may be stuck until everything ages off in 3-4 years. It's disheartening but we will just need to accept the fact and put ourselves in a position where this doesn't happen again. Thanks

[FireMedic1]

Well Portfolio will PFD. The rest not sure. Paid/Settled collections doesnt affect FICO 8 scores. FICO 9 yes. Plus lenders need no past owed debts. Some will but its slim. What about on your credit card side. Thats where points are gained. Where are you cards at with balances and such. Ttry posting them:

Creditor/Credit Line/Balance.

And any lates.

[YankeeClipper]

Five cards with 0 utilization. All opened within the last two years. None have had a late pay. They are all PIF each month. Saw the AZEO concept when I joined a few days back so will leave one with a small balance each month and keep the rest at zero. 

[lucknpat]

I just wanted to give my recent experience, I've had 4 collection accounts removed from my Experian report. And I had a total of 23 point increase, I still have 5 collection accounts. My TU report went up 28 points. So you'll get a bump up but there's no telling how much. It looks like it depends on their age and amount owed, possibly. Others here know a lot more than me so ask if you have more questions.

[YankeeClipper]

Thanks for the feedback. 

[sjt]

Here is a thread of collections agencies that will pay for delete:

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Collection-agencies-that-do-PFD/m-p/5675391