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Do Negs Hurt a Good Profile More?

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krit
Regular Contributor

Do Negs Hurt a Good Profile More?

I remember reading that one neg will harm a good profile more than a bad one. Is this true? I have a decent profile other than a 6.5-year-old collection.

I have ~4.5 AAoA and 20 accts, 11 open (10 revolving and one installment) with perfect pmts. Yet my scores remain in the high 600s.

In your opinion, can I expect to see a big score jump once that collection falls off in four months? If not, I'm at a loss. What else could be at play here?

Thank you for your insight. 

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4 REPLIES 4
AndySoCal
Valued Contributor

Re: Do Negs Hurt a Good Profile More?

If there is no other negative information you should see a nice jump in the score once the collection account falls off.

FICO Scores XPN v8 802 V2 831 (SDFCU) TUC 803 v8 EFX 807 (10/2023)
Discover 09/90 19,000, JCPenney 10/2008 4,700 US Bank Cash+ 12,000 Citibank Custom Cash 5/2015 11,100 C State Dept. FCU 15,000 06/2023 , 02/2024 Redstone FCU Signature VISA 10,000 Banking: Ally Bank Credit Unions: Lafayette FCU Quorum FCU State Department FCU State Department FCU Pelican State CU Redstone FCU

Message 2 of 5
NYC_Fella
Frequent Contributor

Re: Do Negs Hurt a Good Profile More?


@krit wrote:

I remember reading that one neg will harm a good profile more than a bad one. Is this true? I have a decent profile other than a 6.5-year-old collection.

I have ~4.5 AAoA and 20 accts, 11 open (10 revolving and one installment) with perfect pmts. Yet my scores remain in the high 600s.

In your opinion, can I expect to see a big score jump once that collection falls off in four months? If not, I'm at a loss. What else could be at play here?

Thank you for your insight. 


I have a very similar file to yours, except that I have 3 negatives plus a BK7. My scores have hovered around 700 for the last year or so. You should be at least in the 680-690 range unless you have a bunch of new inquiries.


Message 3 of 5
SouthJamaica
Mega Contributor

Re: Do Negs Hurt a Good Profile More?


@krit wrote:

I remember reading that one neg will harm a good profile more than a bad one. Is this true? I have a decent profile other than a 6.5-year-old collection.

I have ~4.5 AAoA and 20 accts, 11 open (10 revolving and one installment) with perfect pmts. Yet my scores remain in the high 600s.

In your opinion, can I expect to see a big score jump once that collection falls off in four months? If not, I'm at a loss. What else could be at play here?

Thank you for your insight. 


1.  Yes of course removing the only negative from an otherwise positive profile would have more impact than removing one negative from a file loaded with negatives, and yes removing your only negative can have a major effect on your scores.

 

2.  As to what else is at play, there are almost definitely other things at play in your case, but how can we even guess as to what they are unless you tell us what's in your credit profile? Making "perfect payments" is just a small part of the equation. We would need to know the limits and current balances on your revolvers, and the original loan amount and current balance on your installment loan.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 4 of 5
NRB525
Super Contributor

Re: Do Negs Hurt a Good Profile More?


@krit wrote:

I remember reading that one neg will harm a good profile more than a bad one. Is this true? I have a decent profile other than a 6.5-year-old collection.

I have ~4.5 AAoA and 20 accts, 11 open (10 revolving and one installment) with perfect pmts. Yet my scores remain in the high 600s.

In your opinion, can I expect to see a big score jump once that collection falls off in four months? If not, I'm at a loss. What else could be at play here?

Thank you for your insight. 


In general, with FICO scoring, when you get into the items that affect score beyond the basics, then yes, the second and third instances of those have less effect.

Payment on time is the baseline expectation.

Miss one payment at 30 days, it'll be a significant hit to score. Miss two payments at 30 days, the second one has less of a hit. But then again, the cardholder has already had the one 30 day late, so that's not a good place to be.

 

By the time you get to a collection, then that one instance is still piling on the additional negative effects, as 30 days stretches to 90 days, then to the collection. Now, if you added another 30 day late, with the collection still in place, that 30 day late I would guess would not be as many points as, from no negatives, adding the first 30 day late. But the only reason this 30 day late would be "less effect" is... due to the existing collection, again not a good place to be.

 

So yes, work on getting the collection removed, and score should jump nicely.

 

Good luck!

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
March 2021 $33k on $312k EQ 796 TU 798 EX 801
May 2021 Paid all Installments and Mortgages, one new Mortgage EQ 761 TY 774 EX 777
April 2022 EQ=811 TU=807 EX=805 - TU VS 3.0 765
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