Credit scores seem lower than comparable profiles?

[Anonymous]

Hi all -

I'm hoping someone can shed some light on my credit situation.  I've read a number of posts to try to get an idea of where my credit score should fall, and I'm confused as my scores seem to be on the low side in comparison to many users with significantly different profiles.  Hoping the experts can review and weigh in.

I recently pulled my EQ and TU reports from Myfico, and also Experian's PLUS score.  They are coming back as EQ: 699. TU: 704, EX: 726.

The only baddie on the report is a medical collection from 5 years ago.  I feel like I have a decent mix of credit (AMEX/gas card/Visa) and a strong payment history, but it doesnt seem like FICO thinks so.  I've had 2 auto loans which were paid off early, and a mortgage that was paid off in 2 years.   I'm 32 years old, so the oldest account corresponds pretty much to the year I was able to seek credit for myself.

Is my score where it should be?  Any advice on how to raise it?  Is that single, old collection just tanking my score?

Here's a summary of my report:

Total past due: No accounts past due

Credit history: 12 years

Accounts with negative indicators: 0

Total revolving balance:  $1726  (on a card with a 20k limit -- 48k total revolving credit over 7 accounts)

Mortgages: None  (had one in 2007, paid off)

Installment loans:  $24,567  (original balance $33,500)

Total accounts: 27  (17 open)

Accounts with balances: 3 (1 credit card, 1 student loan, 1 auto loan)

Recent inquiries: 1

Accounts opened in past year: 0

Collections: 1  (open medical collection from 2006 for $313.  DOLA and DOFD in 2006)

Public records: 0

Average age of accounts: 5 years

Late payments: 0

Oldest account: 12 years, 10 months

[GregB]

---

@Anonymous wrote:

........

I recently pulled my EQ and TU reports from Myfico, and also Experian's PLUS score.  They are coming back as EQ: 699. TU: 704, EX: 726.

 .......

 Is my score where it should be?  Any advice on how to raise it?  Is that single, old collection just tanking my score?

 ..........

---

1. Yes, your EQ FICO and TU FICO are about right. The EX Plus is useless nonsense.

2. You will go into the non-derogatory Scorecards when the collection drops off. That will help a lot.

3. Yes

It sounds like you are trivializing a collection. That is a very big deal. I suggest you work on PFD or pay and then try to get removed through HIPAA.

You are also inflating the positives for payment history. You are expected to NEVER be late on anything.

[cdtotten]

Your score looks pretty spot on with your record. The collection is killing your score, like it always does. Once it drops, you will likely gain 40-60 points instantly. Is it hurting you less than when it first occured, of course; however, serious derogs are going to drag your score down until there gone.

[Anonymous]

Thanks all for the replies -- the review is much appreciated. 

I've gone the dispute route before with the bureaus and all I've gotten back is a form letter.   I'm not willing to try the "whychat" HIPPA method of paying the OC, because I'm concerned about the funds actually getting deposited, restarting the clock on this thing, and leaving no recourse. (I know, that's not supposed to happen -- but have read too many accounts where it has)

On top of that, I've contacted the medical collector about doing a PFD.  The response is the infamous "we can't remove information from your credit report."  In fact the last time I reached out them (March) they flat out told me that they didnt care whether I ever paid or not, because the amount ($300) was so small.  Nice, eh?   The last possible remedy I can think of is to try to try Texas Finance Code 392 because the collector does not have a surety bond in the state of Texas (where I reside) which believe technically bars them from collecting/reporting.

Definately frustrating because I've seen so many commentaries from folks in the same score range with foreclosures, discharged bankruptcies, legtimiate collections worth thousands, or combinations of the aforementioned.  I guess from a scoring standpoint in my mind there's a difference between a willful act (ie: filing bankruptcy); and a situation like mine where it's not even clear why this is on my report and wasn't made aware of it until I pulled my score a couple years ago.  Not to mention the amount in question is almost trivial.

[cdtotten]

If you legitimately owe the debt, there is no reason not to try the HIPPA removal process. Paying the debt won't affect your score - an unpaid collection scores the same as a paid, but getting the debt removed sure would help. As long as the process is followed correctly, then the debt should be removed. Paying would not reset the DOFD or any other credit reporting date. As for the legal SOL, you are paying the debt in full so it won't matter anymore.

[GregB]

The amount of the collection does not affect your score. A collection is a major derogatory and amount doesn't seem to be relevant.

Later versions of FICO, that are becoming more common for Auto and BankCard scores, ignore collection less than $100.

I know nothing about HIPPA process so won't comment on that.