Remaining/collections and how much score is impacted

[Onthemove24]

Hi, I have been scouring these boards and just want to make sure I have a semi-clear understanding so I can decide how to move forward. 

Scores between 687-698 -- working on Utilization to improve them a bit more.

I have 4 items remaining in collection.  Two of them I can request EE come May to remove them from TU.  July, for Experian.  I think Equifax won't come off until November.  (I know not to touch it.)

That leaves me with two collections.). One is medical on TU and Eq. At a collection agency for around $600.  Not scheduled to drop until Feb 2025.  I could pay it and know it would be removed, but here's the catch.  I had another hospital stay after that  (in 2019)  at the same place, but those bills aren't showing on my credit report.  If I rock the boat, I'm worried I could be on the hook for another $1,000 and/or they could all of a sudden be reported and I'm guessing  my score would plummet with a new collection added even if it's old.  Is that right?

And finally, the last collection is at Resurgent/Lviv which I understand will do a pay for delete - otherwise on reports until April 2025.  I am considering negotiating a settlement to get it removed as it's the newest of collections and will still report for a year.  

My question is, is it true that IF all collections dropped, my score would gain a decent amount of points?   I've also read   that if they are old, there is less and less impact to my score.  Not sure which is true?

Once these are gone, my credit report will be clean (although I will still have numerous unpaid debts) but past the SOL. I've had a couple CC all along that I have never been late on and acquired 3 more last September (including apparently a skin of my teeth approval from Amex and a really good SL from Discover.)

Hoping to finance a car in the next 6 months so a better score and minimal collections would be helpful for interest rates and approval odds.  I am on a fixed income so not a ton of money at my disposal.  Thanks in advance for feedback and/or recommendations.

[Thomas_Thumb]

You won't get any significant score boost until the last collection is removed. Impact of collections do not lessen much, if any, over time. When the last collection is removed, score could improve 50-60 points, possibly more for otherwise clean files.

[Onthemove24]

Ty.  If I thought it would improve by at least 40 points, it could be worth it to make the moves to clean up my credit sooner rather than waiting for the remaining items to drop.  That would put me near 740 which is my goal.  A 10 point gain however would not be worth it.  I've waited it out this long...... and being on a fixed income gives me less room to maneuver....

[Thomas_Thumb]

You may want to use the search function to look for poster data on "collection removed" or "last collection deleted". I did a quick search and posters with otherwise clean files were typically reporting a 50- 60 point gain.

Presence of lates could reduce score boost. Still, if they are all 60 days or less, point gain should be definitely more than 10 points. Again, a search should find data on collection removals with lates still present.

[Onthemove24]

Thanks.  I had searched "collections" and I thought I saw conflicting info.  I may have just read too many threads.  😂  I have done a ton of research and review so I don't end up in this mess again.  To be fair, medical does play a big roll in this disaster.  Thanks again.  P.S.  no lates, the one c/o I had is gone and that did cause a big score jump when it dropped off.   Hoping the same when collections are resolved.

[itstodayalready]

I know this is an old thread, but quick question: Would you expect the same kind of increase in the FICO mortgage scores after clearing all collections? 

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@Thomas_Thumb wrote:

You won't get any significant score boost until the last collection is removed. Impact of collections do not lessen much, if any, over time. When the last collection is removed, score could improve 50-60 points, possibly more for otherwise clean files.

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