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Collections and Score Volatility

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Community Leader
Mega Contributor

Collections and Score Volatility

Just wanted to post something I've been watching for the last month. After paying off all my debt, I have been charging and letting balances post before paying them off. Both TU and EX have been dropping over very small amounts while EQ has held steady. The only difference is EQ does not have any collections. I have 1 chargeoff remaining and I'm curious if when I pay it off, if it will add some stability as well.

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Message 1 of 24
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Super Contributor

Re: Collections and Score Volatility


@Brian_Earl_Spilner wrote:

Just wanted to post something I've been watching for the last month. After paying off all my debt, I have been charging and letting balances post before paying them off. Both TU and EX have been dropping over very small amounts while EQ has held steady. The only difference is EQ does not have any collections. I have 1 chargeoff remaining and I'm curious if when I pay it off, if it will add some stability as well.

PhotoGrid_1594388999330.jpg

 


Are you saying that EQ is a clean scorecard, or are you saying that all 3 bureaus have the chargeoff while only TU & EX have collections too?


Total revolving limits 653000 (575000 reporting)

Message 2 of 24
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Community Leader
Mega Contributor

Re: Collections and Score Volatility


@SouthJamaica wrote:

@Brian_Earl_Spilner wrote:

Just wanted to post something I've been watching for the last month. After paying off all my debt, I have been charging and letting balances post before paying them off. Both TU and EX have been dropping over very small amounts while EQ has held steady. The only difference is EQ does not have any collections. I have 1 chargeoff remaining and I'm curious if when I pay it off, if it will add some stability as well.

PhotoGrid_1594388999330.jpg

 


Are you saying that EQ is a clean scorecard, or are you saying that all 3 bureaus have the chargeoff while only TU & EX have collections too?


Sorry, let me clarify, all 3 scorecards are dirty. 7 late payments and 1 unpaid chargeoff. The only difference with EQ is it doesn't have any collections, paid or otherwise







Message 3 of 24
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Mega Contributor

Re: Collections and Score Volatility

@SouthJamaica the score jump on EQ was when my last collection was removed from it.







Message 4 of 24
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Re: Collections and Score Volatility


@Brian_Earl_Spilner wrote:

@SouthJamaica wrote:

@Brian_Earl_Spilner wrote:

Just wanted to post something I've been watching for the last month. After paying off all my debt, I have been charging and letting balances post before paying them off. Both TU and EX have been dropping over very small amounts while EQ has held steady. The only difference is EQ does not have any collections. I have 1 chargeoff remaining and I'm curious if when I pay it off, if it will add some stability as well.

PhotoGrid_1594388999330.jpg

 


Are you saying that EQ is a clean scorecard, or are you saying that all 3 bureaus have the chargeoff while only TU & EX have collections too?


Sorry, let me clarify, all 3 scorecards are dirty. 7 late payments and 1 unpaid chargeoff. The only difference with EQ is it doesn't have any collections, paid or otherwise


I can only guess, but in view of the striking difference in the graph between EQ and the other 2, and the fact that the only difference between EQ and the other 2 is that the other 2 have collections while EQ does not, it sure looks like the presence of collections has had a serious impact. So I'm guessing that if you can get the collections off of the other 2, you should see comparable score gains on those.


Total revolving limits 653000 (575000 reporting)

Message 5 of 24
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Mega Contributor

Re: Collections and Score Volatility


@SouthJamaica wrote:

@Brian_Earl_Spilner wrote:

@SouthJamaica wrote:

@Brian_Earl_Spilner wrote:

Just wanted to post something I've been watching for the last month. After paying off all my debt, I have been charging and letting balances post before paying them off. Both TU and EX have been dropping over very small amounts while EQ has held steady. The only difference is EQ does not have any collections. I have 1 chargeoff remaining and I'm curious if when I pay it off, if it will add some stability as well.

PhotoGrid_1594388999330.jpg

 


Are you saying that EQ is a clean scorecard, or are you saying that all 3 bureaus have the chargeoff while only TU & EX have collections too?


Sorry, let me clarify, all 3 scorecards are dirty. 7 late payments and 1 unpaid chargeoff. The only difference with EQ is it doesn't have any collections, paid or otherwise


I can only guess, but in view of the striking difference in the graph between EQ and the other 2, and the fact that the only difference between EQ and the other 2 is that the other 2 have collections while EQ does not, it sure looks like the presence of collections has had a serious impact. So I'm guessing that if you can get the collections off of the other 2, you should see comparable score gains on those.


I've been working on it as they're workers comp. I'm ready to call up my attorney so he can have my employer, Gallagher Bassett, Sedgwick, the hospital, and UHC figure it out before I sue someone.

 

I just don't understand how collections would impact utilization scoring changes.

 

But this has me curious. I'm going to pay off my chargeoff and see what happens to EX and TU. I expect EQ to finally jump above 700 for the first time in 6 years. I'm curious if there will be a similar effect on scoring once the chargeoff is paid.







Message 6 of 24
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Super Contributor

Re: Collections and Score Volatility

The 2 with the collection are in a PR scorecard and 1 without is in a delinquency scorecard.

I guess that shows a PR card is more sensitive to utilization than a delinquency card.
-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Oct 2020 New Account Scorecard.Nov 2020, No New Account Scorecard (reassignment conflated with aging. EX9 not updated yet. Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.


RIP:
(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 7 of 24
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Super Contributor

Re: Collections and Score Volatility

By the way when was the collection opened?

Wondering if it’s recent or mature PR cards?

When you pay the chargeoff, that should move you to a recent delinquency card on EQ (assuming it’s not regularly reporting and you’re not already there).

I’m not positive what will happen on the others, I think you will stay in the mature PR card, if that’s where you’re at since the PR is more severe.

 

Edited: I mixed up which bureaus we're on which cards I corrected it.

-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Oct 2020 New Account Scorecard.Nov 2020, No New Account Scorecard (reassignment conflated with aging. EX9 not updated yet. Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.


RIP:
(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 8 of 24
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Community Leader
Mega Contributor

Re: Collections and Score Volatility


@Birdman7 wrote:
By the way when was the collection opened?

Wondering if it’s a recent or mature PR card?

When you pay the chargeoff, that should move you to a recent delinquency card on the other two (assuming it’s not regularly reporting and you’re not already there).

I’m not positive what will happen on the other, I think you will stay in the mature PR card, if that’s where you’re at since the PR is more severe.

What's a PR scorecard?

 

2 of the collections are for accounts from 2014, but they showed up a couple of years ago. Probably when the 1 from 2018 started reporting because they're all with the same CA.

 

The chargeoff updates every month.







Message 9 of 24
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Frequent Contributor

Re: Collections and Score Volatility

@Birdman7  is referring to the Public Record scorecard.

 

When I paid off my last CO that was reporting monthly my EQ went from 667 to 708. I had no collections and was AZE2 on my open revolvers. It seems that you would be similar on EQ and should expect similar results.

 

Message 10 of 24
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