Collections less than $100 not factored in FICO '08

[ralbusta]

I just read this in an article:

"One change we are making to the FICO scoring model in our newest update, FICO 08, will cause the model to ignore any collections account with an outstanding balance of less than $100," Watts says.

If this is true, and I can't get those pesky things removed, I know it'll certainly help me. If FICO '08 ever comes out. (They should re-name it FICO 3000!!!) LOL.

---I just relealized it says outstanding balance. You'd think it would ignore paid balances for original amounts under $100 also?

[Anonymous]

Do you have a link to the full article?

[ralbusta]

Here's the link to the Credit in the News thread that had the article link:

http://ficoforums.myfico.com/fico/board/message?board.id=creditnews&thread.id=2288

[Anonymous]

Thanks,

[ralbusta]

Hey no prob, it's just something I hadn't heard about yet. Maybe it's old news?

[Anonymous]

From the article this is powerful stuff. Wondering if that means PIF makes it go away? Or of the original debt had to initially be under $100. CA's are going to make a fortune with this. But it also helps folk out too.

As outlined on its Web site, Fair Isaac does not consider items reported as "child/family support obligations" in calculation of the credit score.

However, small debts that have gone delinquent will soon be forgiven -- at least by FICO. "One change we are making to the FICO scoring model in our newest update, FICO 08, will cause the model to ignore any collections account with an outstanding balance of less than $100," Watts says.

http://www.creditcards.com/credit-card-news/surprise-weird-items-impact-credit-report-1282.php

[marty56]

I think this will backfire on companies like Capitol One, who like to give a customer several small CL credit cards.

[ralbusta]

I think that they are talking about original debts of less $100.

[Anonymous]

---

@ralbusta wrote:
I just relealized it says outstanding balance. You'd think it would ignore paid balances for original amounts under $100 also?

---

That's a very good question.

[ralbusta]

I guess we'll have to wait and see when it's implemented. Unless we get a clarification from Fair Isaac.