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Collections Question in how it relates to Credit Score

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Regular Contributor

Collections Question in how it relates to Credit Score

I know collections stay on your report for up to 7 years, and I'm currently still working on a GW campaign. I was just wondering if anyone knew at what incriments the collections is no longer regarded as "recent" and when (if at all) can I expect bumps in my credit score from it aging? (I.E. years 2, 4 and 7, or 1, 3, 5 and 7, etc)


Starting Score: 612|634|622
Current Score: 695|770|762
Goal Score: 720|720|720


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Super Contributor

Re: Collections Question in how it relates to Credit Score

Do you just have 1 collection and no other negative items on your CR? 

 

I'm not too sure about the possible aging thresholds, but it's pretty common for someone losing a final major baddie (which a collection falls under) to receive a score bump of 70-80 FICO points.  That being said, if the introduction of the collection caused a (say) 100 point drop, it could then be determined that only 20-30 points perhaps are gained back over the course of those 7 years.  We could then say that 1/3 of the points comes back over the course of 7 years and 2/3 of the points come back once the major is finally removed.  At what potential breakpoints those 20-30 points may return along the way, who knows.

Message 2 of 7
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Regular Contributor

Re: Collections Question in how it relates to Credit Score

I have the CA across all 3 of my CRs. Original reporting date 06/2018. I have no idea what the initial drop was because I only recently started following my credit.

On Equifax I have...either a 30+ day late and a 60+ day late. Or a 120+ late. It reads 120 in the comments, but in the break down it has it reported as one 30+ and one 60+.

The rest of my baddies have been removed. So Equifax is going to be my weakest report for a long time.

Starting Score: 612|634|622
Current Score: 695|770|762
Goal Score: 720|720|720


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Message 3 of 7
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Valued Contributor

Re: Collections Question in how it relates to Credit Score

You should be able to see what the days late is when reviewing your reports. 30 days lates are known to impact for around 2 years. Anything over a 30 day late is known to impact for the full 7 years. One thing I would recommend is to review those accounts, if you have documentation that payments were made, then you can dispute and show proof. I had this issue many years ago with a lender and they promptly corrected it.


Scores - All bureaus 750 +/-
TCL - Est. $275K
Message 4 of 7
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Moderator Emeritus

Re: Collections Question in how it relates to Credit Score

I don't know the exact date on collections, but I'm of the opinion that there's only one age split for any public records might be around 4 or 5 years but we've never gotten good traction on nailing that down for even FICO 8 for scorecard segmentation in the lower 4 dirty scorecards.




        
Message 5 of 7
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Regular Contributor

Re: Collections Question in how it relates to Credit Score

I can’t dispute the lates because there are some lates that aren’t on there. Worried if I do they’ll add them. The accounts weird because I’m a co-signer. In the breakdown of my Fico it says “1 30+ late” and “1 60+ late” but in the actual detailed report it shows a bunch of 30 day’s, a few 60s and two 120+ lates. That’s why I’m not sure which one is actually reflecting on my report.

I say it’s weird because they haven’t reported anything on my CR since ‘17. This is because it was sold to a CA. However, the CA is only reporting under the primary signer (my DW). It even shows an incorrect balance on my CR (1.8k instead of 900) because only the CA is reporting on that account now.

Edit: this post was in regards to my other baddy that is only reporting on EQ. I originally asked the question because I do have a PIF collections originally for $152 with SW Credit and they refuse to play ball with GW letters.

Starting Score: 612|634|622
Current Score: 695|770|762
Goal Score: 720|720|720


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Message 6 of 7
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Regular Contributor

Re: Collections Question in how it relates to Credit Score

https://imgur.com/a/66yZfe5

Photos of what I’m talking about are there^. I’d embed them but I’m mobile and can’t figure out how to do it without MyFICO logging me out when I switch tabs for links. Also, the other 2 30+ lates referenced in the last photo have since been removed. They were with Comenity and Visions FCU

Starting Score: 612|634|622
Current Score: 695|770|762
Goal Score: 720|720|720


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