Difference Between 2 collections and 1 collections accounts on Credit Score

[Anonymous]

Thanks, so is there any point in paying off the $650 Cap1 collections account if she doesn't have the money to address the Barclays Charge-off for a while?

[gdale6]

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@Anonymous wrote:

Thanks, so is there any point in paying off the $650 Cap1 collections account if she doesn't have the money to address the Barclays Charge-off for a while?

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Sure, peace of mind and one that stops updating monthly, be that further along when the Barclays gets addressed

[Anonymous]

So her current FICO is ~675. Do you have an estimate of how much it would go up if she does a PFD on the $650 Cap1 (but does not address the Barclays CO yet)?

[Anonymous]

It depends on if it’s regularly updating, it depends on what the credit limit of that card is, what her total credit limit is, there’s such a variety of factors, it will reduce utilization which adds points but if there’s a catch-up penalty due to it not regularly updating, then that offsets those points, so it’s kind of hard to say without more information and then it’s still just a guess.

[Anonymous]

Ah I see, ok thanks for the response

[Anonymous]

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@Brian_Earl_Spilner wrote:

I'm assuming Barclay is not in collections, just charged off. If you check out my thread, I've been tracking my scoring changes after one of my reports had all collections removed, but still has 1 chargeoff on it that updates monthly. So EQ has 1 chargeoff, while the other two have the chargeoff and 3 collections reporting. EQ was stable while the others stayed volatile during utilization changes throughout the month.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Collections-and-Score-Volatility/td-p/60...

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@Brian_Earl_Spilner and that's an awesome contribution you made in helping us understand the difference between the PR scorecards and the delinquency scorecards.

Now we know the PR scorecards are more sensitive than the delinquency scorecards to utilisation changes. Matter fact, I think I'm gonna add a link to the Scoring Primer and add that information. Thank you, by the way!

[Anonymous]

@Anonymous And I'm speaking of the chargeoff. As for the collection, unless it's deleted, it offers no score benefit and it doesn't matter whether it's deleted now or later. The chargeoff, on the other hand, is getting worse the longer it goes unpaid whereas the collection is static.

So I would be more worried about taking care of the chargeoff, so that there is no further penalty and the scores are no longer suppressed. Then, you have to work on the collections and getting both of them deleted. Jmho.

Good luck to you I hope to hear of great results!

[Brian_Earl_Spilner]

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@Anonymous wrote:

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@Brian_Earl_Spilner wrote:

I'm assuming Barclay is not in collections, just charged off. If you check out my thread, I've been tracking my scoring changes after one of my reports had all collections removed, but still has 1 chargeoff on it that updates monthly. So EQ has 1 chargeoff, while the other two have the chargeoff and 3 collections reporting. EQ was stable while the others stayed volatile during utilization changes throughout the month.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Collections-and-Score-Volatility/td-p/6077824

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@Brian_Earl_Spilner and that's an awesome contribution you made in helping us understand the difference between the PR scorecards and the delinquency scorecards.

Now we know the PR scorecards are more sensitive than the delinquency scorecards to utilisation changes. Matter fact, I think I'm gonna add a link to the Scoring Primer and add that information. Thank you, by the way!

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EQ finally budged by 2 points when my overall UTI hit 20%. I'm thinking navy Platinum going from 0 to 31% is actually what did it, but I gained it back when my retail card balance dropped $59. I also gained points for TU and EX for that $59 balance decrease as well. Makes me wonder if they score retail and bank cards differently for utilization. I'll post screenshots later

[Anonymous]

They are treated differently in some respects, TU keeps separate tallies for retail utilization, for a reason, I suppose. Don't know exactly.