Collections and Score Volatility

[Brian_Earl_Spilner]

Wanted to update the thread as larger 0% BTs are starting to update. EQ is still rock solid. If this continues, it's a strong argument for taking care of collections before chargeoffs, unless a chargeoff is about to become a collection.

[Brian_Earl_Spilner]

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@Anonymous wrote:

Apologies to everyone. Due to my lack of sleep, I screwed up the two with the one and stated it backwards, but I went back and corrected my posts.

EQ has no collection, only chargeoff and lates; therefore it is in delinquency card.

TU and EX have a collection and are therefore in PR card.

@Brian_Earl_Spilner  was describing the difference utilization has between the two scorecards.

Either way, with paying the chargeoff, your scores will begin to rise, at least as far as they can in those cards. Plus whatever points for utilization you may get. Did you say it was reporting regularly?

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The chargeoff and collections are reporting regularly.

[Anonymous]

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@Brian_Earl_Spilner wrote:

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@Anonymous wrote:

Apologies to everyone. Due to my lack of sleep, I screwed up the two with the one and stated it backwards, but I went back and corrected my posts.

EQ has no collection, only chargeoff and lates; therefore it is in delinquency card.

TU and EX have a collection and are therefore in PR card.

@Brian_Earl_Spilner  was describing the difference utilization has between the two scorecards.

Either way, with paying the chargeoff, your scores will begin to rise, at least as far as they can in those cards. Plus whatever points for utilization you may get. Did you say it was reporting regularly?

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The chargeoff and collections are reporting regularly.

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@Brian_Earl_Spilner I assumed they were but I just wanted to confirm it. There's good and bad from that. The bad part is it continues to suppress your score. The good part is is that when you do settle it there won't be a catch up penalty because it has been continuously updated.  

You will probably see an increase due to the reduced utilisation even. That would not necessarily occur had it not been updating because you would have the catch up penalty for the increased delinquency period at the same time, which you now won't have. 

[Anonymous]

Excellent data points, very insightful, thank you for posting.