Collection deleted + 3 new accts. -14 FICO

[kay82]

I dont get it, I got a secured card in 2007 will not graduate put all of the money 500 limit just a lousy secured card thats all it will ever be!!! had 1 store card since 2000...due to my not having to much knowledge about credit back then I closed lots of good accounts thinking it would raise my score...Fast forward

 Pulled report on 12-05-08 fico was 654, with 2 collections so I dispute one it gets removed, and in nov. I opened 3 new accounts to include a target macys & hooters. So I check my fico again this morning thinking Ive accomplished something and should get some points back from that collection being deleted....

OF COURSE NOT I lost points my fico is now 640 .......super bummed so I get the urge to apply for a juniper sea miles card just to see if Im still in the decent range to even get a TL and u guessed it DENIED.......I dont get it... I  freakin give up I swear !!! 

[miltfel1234]

I am still new at this credit thing myself.  How old was your collection?  Sometimes they are factored into your length of credit history.  So if it was deleted, you could have lost points, for losing some of your history length.  If you just opened three new accounts, this could have also lowered your average age of accounts.  I hope that made since.  I had the same thing happen to my DH a while back..  Hang in there it will get better as the accounts age.  Don't give up, it will get better!!!

[kay82]

Thanks ..the collection was from 04- 2007 I have history since 99 so Im not sure what happened, I just feel like a loser

[Anonymous]

The reason why you saw a score drop and a denial on the 4th card  is because you just opened 3 new tradelines and your average account age has decreased. Don't give up, you will see a good score boost in six months as long as you keep a low util. on the cards and pay on time.  My suggestion is to stop applying for 6-12 months and establish some good payment history, only then I would ask for a credit limit increase on the existing cards.

[kay82]

Ok thx roberts I will give it a shot.....I thought by adding a new TL that would raise your score a bit

[Anonymous]

If you have no revolving credit or that specific type of credit you added, it usually does help your report.

However, you added accounts(decreasing AAoA), plus you got dinged for "new credit and inquiries".

What is your revolving util? For max points, keep it between 1-9%, with half or less of your cards reporting balances, and those that do report a balance, keep the individual util between 1-9%.

As for the collections counting in age(someone mentioned), collections reported properly are NOT counted in age.

My advice would be, unless you need to apply for credit, would be to just let things age for ahwile, inquiries to get at least 1 year old, new accounts to get at least 1 year old, and then see how things look.

You said you were able to get 1 collection removed, what about your other? Is it paid? If unpaid, is it beyond SOL or can you PIF? Is it accurate?

[Anonymous]

Yes, in the long run it helps you out BUT when you first get approved your average account age decreased which decreases your score, also you have put 4 new hard inquiries on your credit report which lower(only by a few points) your score. The fact that you got 3 new credit cards is great news and you should be proud of your accomplishment but what will make it even better if you can keep all those new cards in good standing. Be happy because in the next 6 short months you will see a good score boost. Chin up, you got good things coming.

[daisy245]

As for the collections counting in age(someone mentioned), collections reported properly are NOT counted in age.

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Collections are not supposed to count for age?  I am having same problem.  I have a medical collection that shows it is helping my score because it is my oldest account.  On the other hand, it shows it hurst because it is a collection.  It is listed under Credit History for oldest and newest account.  How is it supposed to be listed?

[Anonymous]

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daisy245 wrote:

As for the collections counting in age(someone mentioned), collections reported properly are NOT counted in age.

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Collections are not supposed to count for age?  I am having same problem.  I have a medical collection that shows it is helping my score because it is my oldest account.  On the other hand, it shows it hurst because it is a collection.  It is listed under Credit History for oldest and newest account.  How is it supposed to be listed?

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Is it a myFICO report that is telling you that it is helping?

Is it listed under collections by a CA?

[daisy245]

It is on  my equifax scorewatch report and yes, it is listed under collections.