How is this possible?

[nashfm]

I started a month ago with 8 collections on my credit report. I have since gotten PFD on all 8 and all have been paid. I updated my SW today and 4 of the 8 accounts have been deleted from my report. My score did not change at all! How is this even possible?

[nashfm]

Also, since I am in the process of rebuilding my credit will opening a new loan for 1 year note and paying on time hurt my score or improve it? I can get a loan at my bank without pulling a CR. I would just set the money aside and pay each month.

[Anonymous]

Your score depends on many factors.  How many accounts you have, are there more negatives on your report, your utilization, the AAoA.

Getting 4 removed with 4 left could possibly have little impact.

Anything you pay on time is going to help.  Installment loans do not factor much into the utilization, just history and age.

[nashfm]

Should I see an increase once all collections are deleted. I spent $4,000.00 to PIF for PFD and these accounts were all at least 2 years old. Now I am thinking I may have just wasted all that money if its not going to improve my score. 5 of these accounts were due to fall off next year and were past the SOL.

[Anonymous]

Once all the collections are gone you should see an increase.   Do you have lates on anything?

[nashfm]

yes I do. I am very unfamiliar with all of this. I feel like Ive learned a lot on here but I dont know what to expect. If I post all of the negative and status could you help give me some insight as to what to expect. I could pm you

[Anonymous]

Read some of the links below.  They will be very helpful.

How old are the lates?  Are they just single lates or 30, 60, 90? 

Yep, post your accounts but leave out personal information.  If you have many of them do a few at a time.

I do not a pm either, it is up to you.

[nashfm]

So once all collection accounts are gone does that equal a big increase in scores?

[Anonymous]

As collection accounts age they weigh less on your score than when they originally hit.

Even if they fall off next month, and you apply for credit today, you would most likely be denied just because it's history. 

Having them gone will help immensely, but depending on age, you could see anywhere from 5-50 points increase. Or, depending on your average age of accounts, if you have an old paid collection, it is being weighed in your AAoA. If it falls off, you could take a hit because your only AAoA are collection accounts. 

Very very hard to tell for sure. It all depends on your overall profile (report).

Message Edited by leah5570 on 03-10-2010 06:33 PM

[Anonymous]

If there are still lates on your CR, getting collections removed will not have a huge impact unless they were newer.  Still having a late is negative.