Collections and Score Simulator

[lauramg80]

I just signed up for the Myfico scorewatch. I noticed that my Equifax score is way lower than i thought it was so I went to the score simulator. It seems to be counting two of my collections as revolving/open accounts in the balance so it makes little difference when i attempt to see what my score would be when I pay all of my actual revolving accounts off.

My question... does the fact that the score simulator is counting my collections as revolving mean that something is keyed wrong on my report that needs to be corrected?

Thank!

[John060675]

Yes, it does.  I would dispute the information in writing and just say that there is multiple problems with the account.  The worst thing that will happen is that it will be corrected.

[AndySoCal]

How old are these collection accounts ?

[Anonymous]

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@lauramg80 wrote:

I just signed up for the Myfico scorewatch. I noticed that my Equifax score is way lower than i thought it was so I went to the score simulator. It seems to be counting two of my collections as revolving/open accounts in the balance so it makes little difference when i attempt to see what my score would be when I pay all of my actual revolving accounts off.

My question... does the fact that the score simulator is counting my collections as revolving mean that something is keyed wrong on my report that needs to be corrected?

Thank!

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IMO I would not rely on any simulator being from MYFICO or any other place for that matter. 

[lauramg80]

The collections are from 2009

[RobertEG]

The simulator (and FICO itself) counts a collection as a collection.  The type of debt is not the issue when scoring the type of debt upon which a collection is based.

Collections all have the single status as "open" until such time as the collection is closed due to termination of collection authority or satisfaction of the debt.  The identification of a collection as "open" does not mean the OC account is open.  Collections are not accounts with a creditor, so dont have a status of revolving or installment.

The real issue is the status of the OC account upon which the collection is based.  Its status as revolving or installment determines the category of % util its scoring will be based upon.  How is the OC account identified, apart from the collection?

One of the common problems, which you may be experiencing, is that commerical credit reports often mix status codes in their reports, transferring information that applies only to the OC account over to the heading under collections, leading to much confusion.  FICO scores your credit file, and not a formatted commercial credit report. 

[lauramg80]

The original tradelines are no longer listed on my report. Just the collections for them. I checked my score and it had dropped 70 points since the last time I checked. This was the only difference I saw..that the total of revolving balances included the midland and Jeff cap collections.

[AndySoCal]

If the coleection agency is reporting the loan type as credit card that might be causing the simiulator to thing the account is revolving. If it is the account  is most likley over the credit limi and also is being included in your credit utilization hence the score drop. Just to clarify the Open account type in the account type field. This does not refer the to the being open or closed.  Open account type can be characterized by single payment accounts IE like a charge card the balance is due in full each month. I have seen where some creditors will change the account type from revolving to Open on closed delinquent accounts becauae at the time the balance is due in full.  One other thing you might want to investigate the satatue of limitations on this type of debt in your state. I would not dispute these trade lines. 

[Anonymous]

I also have one collection (unpaid) that shows up as past due on my EQ report but not the other two.  My TU and EX scores are significantly higher and I feel that is what is pulling down my EQ score.  I am going to try a PFD (again) after I close on my house to see if I can get that score up.