Collection removal dropped my score

[Anonymous]

I had a collection show up as a result of the difference between a settlement amount and amount owed. I disputed it with the CA showing them the documentation where the settlement satisfied the balance on the account. Fast forward a month and the collection gets removed from my credit reports. My score dropped 5 pts as a result, nothing else changed except for that removal. How does that work ?

[Anonymous]

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@Anonymous wrote:
I had a collection show up as a result of the difference between a settlement amount and amount owed. I disputed it with the CA showing them the documentation where the settlement satisfied the balance on the account. Fast forward a month and the collection gets removed from my credit reports. My score dropped 5 pts as a result, nothing else changed except for that removal. How does that work ?

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Sometimes if it is your oldest account, then when it falls off, then your AAoA drops.  Is it the only one you have or are there others?

[Anonymous]

No, it wasn't the only one, nor was it the oldest. I have 5 other collections on my reports but there all paid, the one that was disputed and got removed was the only unpaid one.

[RonM21]

It may not even have to be the oldest. If it was old enough to have significant impact, it can still cause this. OR, something eles happened on your report in combination, to help cause the decrease.

[RobertEG]

Collections are not included in your age of accounts calculation.

There are other factors at play.

Filing of a dispute did not remove the collection from scoring, but did temporarily remove certain OC account information.

Conclusion of the dispute then returned that info to active scoring.  It's removal and re-inclusion could have had hidden score implications.

I would not atrribute any score changes after the dispute directly to the removal of the collection.

It is also likely that if the collection was the last major derog, you were moved to a different scorecard under a clean file.

[Anonymous]

Also, the collection was never disputed with the CRA's, only with the CA, during the course of the dispute, the CA did update the entry to show "disputed".

[surferchris]

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@RobertEG wrote:

Collections are not included in your age of accounts calculation.

There are other factors at play.

Filing of a dispute did not remove the collection from scoring, but did temporarily remove certain OC account information.

Conclusion of the dispute then returned that info to active scoring.  It's removal and re-inclusion could have had hidden score implications.

I would not atrribute any score changes after the dispute directly to the removal of the collection.

It is also likely that if the collection was the last major derog, you were moved to a different scorecard under a clean file.

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Agreed.