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Removal of Collections

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josie
Regular Contributor

Removal of Collections

I have decided to fix my credit again due unforeseen circumstances. In reviewing my reports I have several collections with Midland and Portfolio all under 1 year most recent is December. I'm trying to make sure I am understanding what I have been reading correctly. Once PIF or settled they will remove off the credit reports?
Started over because life happens.
I did it again even better this time. My highest score last time was 680

Starting Score: 513 Ex 520 Eq 534 Tu
Current Score: 689 Ex 684 Eq 698 Tu
Goal Score: 740


Take the myFICO Fitness Challenge



Message 1 of 20
19 REPLIES 19
Anonymous
Not applicable

Re: Removal of Collections

Both have a stated policy of doing so. Midland will once the debt reaches two years of age from the DoFD. I’m unaware of an age restriction for Portfolio - some have said it’s also a two-year minimum but others have said they do straight up PFD with no regard for age.
Message 2 of 20
josie
Regular Contributor

Re: Removal of Collections

Thank you will work on Portfolio first (amounts are lower) then Midland.
Started over because life happens.
I did it again even better this time. My highest score last time was 680

Starting Score: 513 Ex 520 Eq 534 Tu
Current Score: 689 Ex 684 Eq 698 Tu
Goal Score: 740


Take the myFICO Fitness Challenge



Message 3 of 20
Anonymous
Not applicable

Re: Removal of Collections

Sounds good. So that you aren’t surprised or confused at the process, this is what will happen:

- account is paid off, whether settled or PIF

- credit reports updated with $0 balance (and verbiage to reflect the amount - PIF, settled for less, etc) for tradeline (you may see a score drop when this happens - it’s normal. When the balance updates, it “refreshes” the derogatory account in the scoring algorithm, making it look new. Depending on how new it actually is, you may see no change, or you may see a scoring dip - don’t sweat it, it’s temporary and not a mistake)

- within 30-45 days, you’ll get another alert that your score has changed. Tradeline will be deleted from reports as if it never existed. A small score bump is likely, but nothing more than that. The fact that you have any negatives is what suppresses your score. The first one that hits will eviscerate your score. Subsequent derogs may cost an additional 10 points or so. As they come off, the gains are the same in reverse order - minimal gains for each until the last one is deleted. When the last one goes away, provided your profile is solid (not too much in the way of balances and inquiries for example), hold onto your butt - you could see 50, 80, even 100 points or more gained when your reports are clean Smiley Happy
Message 4 of 20
josie
Regular Contributor

Re: Removal of Collections

Thanks got it.
Started over because life happens.
I did it again even better this time. My highest score last time was 680

Starting Score: 513 Ex 520 Eq 534 Tu
Current Score: 689 Ex 684 Eq 698 Tu
Goal Score: 740


Take the myFICO Fitness Challenge



Message 5 of 20
Brian_Earl_Spilner
Credit Mentor

Re: Removal of Collections

Yeah, they'll delete after a certain amount of time. I just paid both of these guys off. This is my timeline so far.

 

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Portfolio-and-Midland-Go-Bye-Bye-Now-UPDATE-...

    
Message 6 of 20
josie
Regular Contributor

Re: Removal of Collections

Just read your messages I hope they can offer me 40% even though they are about 6 months old and less.
Started over because life happens.
I did it again even better this time. My highest score last time was 680

Starting Score: 513 Ex 520 Eq 534 Tu
Current Score: 689 Ex 684 Eq 698 Tu
Goal Score: 740


Take the myFICO Fitness Challenge



Message 7 of 20
Brian_Earl_Spilner
Credit Mentor

Re: Removal of Collections


@josie wrote:
Just read your messages I hope they can offer me 40% even though they are about 6 months old and less.

Realistically, it'll probably only be 10% because it's so new. It took a couple years for mine to climb to 40%. I also think part of it is whether it would be worth suing over. I've seen people with larger amounts than me that couldn't get more than 10% off. I've also seen some people get 65% off.  For reference, my Midland amount was $700.

    
Message 8 of 20
Red1Blue
Super Contributor

Re: Removal of Collections


@Brian_Earl_Spilner wrote:

Yeah, they'll delete after a certain amount of time. I just paid both of these guys off. This is my timeline so far.

 

https://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Portfolio-and-Midland-Go-Bye-Bye-Now-UPDATE-...


In your post, you did not mention how long it took PRA to remove the collections. How long did they take. I paid off 3 PRA accounts about 2 weeks ago. They are reporting now as settled / $0 Balance. Wondering when they might completely come off the report.

Message 9 of 20
Anonymous
Not applicable

Re: Removal of Collections

Seems to be 30-45 days from the payoff date for most people.
Message 10 of 20
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