Point increase if collection is removed?

[Shellie]

We are working on getting a collection from Verizon removed.  It is the only bad thing on the report and the only bad thing that has ever happened-ever.  It's $90 from 2016 but I paid in 08/18.  I was doing some reading and am wondering if it would even help IF the negative gets removed.  I pretty sure that it won't make a big impact on score but it will at least remove the verbiage about "derogatory accounts" when a report is pulled and help with credit approvals and limit increases etc. 

I saw the following in an article.  Is this true?

"If you’re unaware, VantageScore 3.0 and FICO 9 are credit scoring models that use extremely relevant data from the three major credit bureaus to calculate your accurate credit score.

The newer FICO score models ignore collection accounts where the original balance is less than $100. Thus, eliminating some nuisance collection accounts, such as small parking tickets or unpaid library fines, from hurting your credit scores.

Along similar lines, the new VantageScore 3.0  credit score ignores all paid collections accounts, as well as any collections, paid or unpaid, under $250. But you rarely know what credit scoring model is being used when you apply for a loan, credit card, mortgage or auto loan, so you can’t necessarily bank on these models’ rules. Either way, just know there’s some chance that your score won’t even take hits from collections."

[Anonymous]

I think those would be called nuscience debts. I'm not sure but I think they may be up to the discression of the loaner. Id think it would be worth attempting to be removed. A single account for me that was over $100 added 100 points to my score once removed. If your score is showing low because of derog accounts I would attempt to remove.

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[DebtJoe]

Hi Shellie,

A collection under $100 will not affecting scoring if the debt is being collected by a third party only......If it is with the original lender it will hurt you.

"Per the FICO 8 product fact sheet the $100 and under exclusion applies to third party collection accounts, but not to lender collection accounts. In other words if a collection agency that is collecting on behalf of the original creditor has a debt of under $100 it will not be included in the FICO score calculation. If the collection is reported by the lender (for example a department store like Target or Kohls) that has their own in-house collections, the debt will not be ignored."

[Shellie]

This is how it shows on the credit report that the mortgage guy pulled. (I deleted the account number)

[fishbjc]

Hmm, you may gain a few points.  What do you have to lose by trying to have it removed??

[taggl00]

I'm in the same boat....Verizon reported my final bill to collections before giving me a chance to even pay it...

i paid the bill $574 and then got a collections notification 9 days later

[Shellie]

It was just a question, as I don't see it causing much of an increase.  We are proceeding because even if there isn't a score increase it will remove the ding of having delinquent accounts.