CA agreed to remove account - increase?

[Anonymous]

Hi All,

I have a small collection that was paid and went on my report April 2018.  I wrote the CA many times and they ignored my letters and when calling, they refused to remove it.  It shows as being paid and closed currently.  I called today and I guess I got lucky. She said she will have it removed and give it 7-14 days but it could take up to 30 days.  This is a good sign that it will be removed.

This is the only collection on my account.  My scores are currently EX:682, EQ:678 TU:680.  Do you think there is a chance this could push me to 700 or could there possibly be no change at all?

[SouthJamaica]

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@Anonymous wrote:

Hi All,

I have a small collection that was paid and went on my report April 2018.  I wrote the CA many times and they ignored my letters and when calling, they refused to remove it.  It shows as being paid and closed currently.  I called today and I guess I got lucky. She said she will have it removed and give it 7-14 days but it could take up to 30 days.  This is a good sign that it will be removed.

This is the only collection on my account.  My scores are currently EX:682, EQ:678 TU:680.  Do you think there is a chance this could push me to 700 or could there possibly be no change at all?

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I predict it will move you to over 700 across the board.

[Anonymous]

Sounds good.  I guess it's just a waiting game now to see what happens.  I'll keep my fingers crossed.

[ridgebackpilot]

Since the collection went on your report less than a year ago, it's still having a relatively large impact on your scores. So when it's removed, you should see a pretty good bump.

As you probably know, collections have less and less impact on your CR as they age. For example, I have an old medical collection on my reports that I never paid. But it dates from 2013 and thus has little if any continuing impact on my scores. I've disputed it several times but haven't been able to get it removed. When it finally falls off late this year or next, I'll see an increase but not as much as you'll experience.

[Anonymous]

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@ridgebackpilot wrote:

Since the collection went on your report less than a year ago, it's still having a relatively large impact on your scores. So when it's removed, you should see a pretty good bump.

As you probably know, collections have less and less impact on your CR as they age. For example, I have an old medical collection on my reports that I never paid. But it dates from 2013 and thus has little if any continuing impact on my scores. I've disputed it several times but haven't been able to get it removed. When it finally falls off late this year or next, I'll see an increase but not as much as you'll experience.

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That is what I am hoping, since it's still under 1 year. 

[Anonymous]

Do you have any other negatives items anywhere on your credit report, like a late payment?  If not, the removal of a single major baddie like your collection even if it is aged many times results in a 70-80 point gain. 

I think the best benchmark for you here is to reference your FICO scores before that collection hit your reports.  If your scores dropped (say) 50 points, you'd probably stand to gain back something in that realm. 

[Anonymous]

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@Anonymous wrote:

Do you have any other negatives items anywhere on your credit report, like a late payment?  If not, the removal of a single major baddie like your collection even if it is aged many times results in a 70-80 point gain. 

I think the best benchmark for you here is to reference your FICO scores before that collection hit your reports.  If your scores dropped (say) 50 points, you'd probably stand to gain back something in that realm. 

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No except a two 30 days from 2011 on a student loan.  I'm not sure what impact that is having now.  I'll have to look back for some old reports to see.  I had 3 collections, 2 removed early last year and this was the last one.  My scores were in the 520's exactly this time last year.  Now they are as above.  Utilization is at 1% and 1 inq across all three.   It's pretty exciting, I must admit to see what happens.  Either way it's no collection on my reports regardless of the gains, so I'll be happy.

[Anonymous]

Gotcha.  With multiple collections present before there was of course no way to see what your potential score may be from the removal of this final major.  My estimate is 60-70 points.  I'm assuming that as the other collectons were removed, due to diminshing returns you likely saw little to no score improvement?

[Anonymous]

So I looked at my score history based on the month before and after it was added. I got it up to 642 after having the old ones removed due to age and then this was added April 2018 and dropped it down 602...I havent done too much since then but add a few cc's (1 is an au), and inquiries dropped off, so I don't know what type of gain I'll see.  I wish there was a simulator that showed what it would be with the collection removed since they have it for other things but whatever it is, you can bet i'll still be happy with it.

[Anonymous]

All simulators are garbage, so no need to think about those.  Simulators have told people they'll gain 0 points from an event and they gain 100 and they've told people they'll gain 100 points from an event and they've gained 0... of course everything in between has also been the case.

I look forward to hearing your results once your reports update and you pull new scores.