Aged Collection Score Damage?

[Anonymous]

Portfolio Reovery just put an old credit card collection ($439) from 2014. I tried fighting it but they had the proof I was notified. I had moved and not forwarded my mail at the time.

My question is the damage as in points. My score went down about 45 points when this hit. Will this collection start to age faster than a new collection since it is from 2014?

[RobertEG]

No, not if the debt collector is continuing to notify the CRA that the collection remains unpaid, and thus that the period since initial delinquency is continuing to increase.

A collection begins to "age" in scoring impact when it is paid, which thereafter will no longer have a delinquency status even if an updated reporting is made.

A consumer does not benefit in scoring by leaving a collection unpaid unless the debt collector ceases notification by way of updated reporting that the debt continues to be unpaid (delinquent).  An unpaid collection can be updated at any time up to its ultimate exclusion date, and thus the consumer can be hit with further score impact at any time.

[Anonymous]

So if I am understanding what you wrote- an unpaid collection on your CR will have the same impact from day one to the very last day when it is removed at seven years?

[RonM21]

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@Anonymous wrote:

So if I am understanding what you wrote- an unpaid collection on your CR will have the same impact from day one to the very last day when it is removed at seven years?

That is the way I take what Robert said. As long as it is unpaid and on your report, the impact will generally be the same

[Anonymous]

I think it's worth noting though that a collection is a major negative item, paid or unpaid.  If it's on your CR, it's going to adversely impact your scores in a major way.

Someone with a clean CR (no negatives at all) that has a collection hit may see their scores drop 100-110 points.  An aged collection that's nearing the 7 year mark (say 6.8 years old) is still going to be adversely impacting score around 70-80 points.  That means that at most the adverse impact of a collection over the course of 7 years is only going to diminish maybe 30 points, which in my opinion over the span of 7 years really isn't a significant amount.  My basic point here is that the removal of the collection is what's significant overall, not the aging of it.  

[JVille]

It’s such a small amount have you approached them with a “ Pay to delete” offer?

[RobertEG]

The post pertains to a reported collection that apparently remains unpaid.

If the collection remains unpaid, it is increasing in period of delinquency, not decreasing.

The "newness" of a collection is not based on when it is first reported, it is based on the time since initial delinquency.

Stated simply, leaving a collection unpaid does not, if the debt collector is updating their reporting, result in decrease in the negative scoring.

A collection only "ages" in scoring impact once it is paid (or becomes excluded), and thus there is no longer any continued increase in the period since initial delinquency.