cancel
Showing results for 
Search instead for 
Did you mean: 

Effect of derog on score - all else equal

Estimate your FICO® Score range for free

FICO® Score Estimator

Auto Loans for ANY Credit Situation. Immediate Response.
Advertiser disclosure
Member

Effect of derog on score - all else equal

Hello community
New to this and apologies for duplicating existing topic.
On my way to rehab my credit. Have a collection that is 5 years 4 months old (all of $375 - I know...)
My question - generally speaking what SHOULD be my score now if I did not have that on my report - all else unchanged?
Currently stands at 680 FICO. Util at 31 percent. Trying to understand what it cost me 'score-wise'.
Thank you all.
Message 1 of 17
16 REPLIES 16
Community Leader
Super Contributor

Re: Effect of derog on score - all else equal


@sb48 wrote:
Hello community
New to this and apologies for duplicating existing topic.
On my way to rehab my credit. Have a collection that is 5 years 4 months old (all of $375 - I know...)
My question - generally speaking what SHOULD be my score now if I did not have that on my report - all else unchanged?
Currently stands at 680 FICO. Util at 31 percent. Trying to understand what it cost me 'score-wise'.
Thank you all.

Hi and welcome to the forums

 

The collection is affecting your score and will continue to do so for as long as it's on your CR. 

Is it paid or unpaid collection? 

Which collection agency? 

 

 

EX 754 EQ 773 TU 752
Message 2 of 17
Valued Contributor

Re: Effect of derog on score - all else equal

It would depend on other factors - how many accounts you have, how old they are, if any of them have any lates in the last 7 years, etc.

That being said, a single derog on an otherwise clean report can easily cost 60-100 points, likely toward the higher end.


Rose Gold/BCP/Delta Gold/Hilton Surpass/Hilton Honors | IT | Quicksilver | Target | VS | Home Depot | Lowes | Firestone | Wayfair | Kohl’s

Heir apparent to the SJ Special (finally got a Disco CLI of $300)

5/24, 1/24, 76445/24, who cares #HappyWithAmex





Entering the garden 5/27/2019, staying until 2020
Message 3 of 17
Member

Re: Effect of derog on score - all else equal

The collection is unpaid. I planned on just 'age-ing' it out, unless there's a better way?

I am on time with all my accounts. Util should drop below 20 percent after last round of payments. I realize that should boost my score

I guess what I'm trying to balance is should I take action re: collection (pay to delete?) but at the risk of re-starting the '7 years' - for a gain of how many points? Is there a simulator that would show that? (I use CreditWise, not as useful as I'm finding out from the forums).

Thanks again
Message 4 of 17
Community Leader
Super Contributor

Re: Effect of derog on score - all else equal

Paying collection does not restart reporting period. It will still get removed no later than 7.5 years from DOFD.
Paying a collection that's updating is a good thing because it stops the updates, however there is no huge gain for paying it.

There would be a significant gain if this is your only negative on CR (no associated CO) and you get PFD on that collection
Biggest scoring gain happens when last derog is gone.
EX 754 EQ 773 TU 752
Message 5 of 17
Valued Contributor

Re: Effect of derog on score - all else equal

You could let it age off. However, PFD is better as it could conceivably be gone in the next few weeks. Who is currently collecting on the debt, and are they the only one reporting it? Also, what is your state’s statute of limitations for suing to collect the debt? If you’re outside the SOL, you have a lot of leverage after this much time, as their only hope of getting paid is to rely on you to do so. If that’s the case, you can lowball them at 40% of the value (with willingness to negotiate) and PFD if you pay them.

Fill us in on the answers to those questions and we can help guide you.


Rose Gold/BCP/Delta Gold/Hilton Surpass/Hilton Honors | IT | Quicksilver | Target | VS | Home Depot | Lowes | Firestone | Wayfair | Kohl’s

Heir apparent to the SJ Special (finally got a Disco CLI of $300)

5/24, 1/24, 76445/24, who cares #HappyWithAmex





Entering the garden 5/27/2019, staying until 2020
Message 6 of 17
Member

Re: Effect of derog on score - all else equal

ReSmiley FrustratedOL I just looked up Massachusetts and it's 6 years as measured for when it defaulted (guessing it's not the same from when it went to collection - in other words, I'm closer to the six already?)

There is only one reporting/trying to collect. I am not clear on the agency.

Veering off topic, but am I right in thinking that as soon as I reply/reach out/negotiate with the collection agency I then restarted the 'starting time'?

Message 7 of 17
Valued Contributor

Re: Effect of derog on score - all else equal

Yes, you’re closer than you would think to the DoFD. No, reaching out does not restart the clock. The only thing that potentially could would be to enter into, and begin paying on, a repayment plan, then defaulting on it. Short of that, it falls as scheduled.


Rose Gold/BCP/Delta Gold/Hilton Surpass/Hilton Honors | IT | Quicksilver | Target | VS | Home Depot | Lowes | Firestone | Wayfair | Kohl’s

Heir apparent to the SJ Special (finally got a Disco CLI of $300)

5/24, 1/24, 76445/24, who cares #HappyWithAmex





Entering the garden 5/27/2019, staying until 2020
Message 8 of 17
New Contributor

Re: Effect of derog on score - all else equal

I’m confident you could be above 700 if this wasn’t on your credit. A $375 collection sounds like a bill and not so much a credit card debt, am I correct? Have you tried a paid for delete?

Take the myFICO Fitness Challenge


Starting Score (12/2018): 624, Experian Score 8
Current Score (07/2019): 716, Experian Score 8
Goal Score: 740


MYFICO Proud Garden Club Member: 

Message 9 of 17
Super Contributor

Re: Effect of derog on score - all else equal

My guess would be 70-80 points gained from the removal of this lone aged major from your CR.

Message 10 of 17
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.