FICO scoring of Collections under $100

[sjt]

I heard with FICO 08 unpaid collections under $100 do not effect your score.

[Anonymous]

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@sjt wrote:

I heard with FICO 08 unpaid collections under $100 do not effect your score.

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You are right.  Revelate pointed that out yesterday, for which I thanked him.  I have update my original comment with this language:

Edit: Revelate gave me a very helpful correction later on in this thread, so I am amending the above to say that FICO 8 does not count a collection of < $100 even if it is unpaid.  I do not know if FICO 9, has the same policy (regarding small unpaid collections).  As I mention above, in FICO 9 all paid collections of any magnitude are ignored.

[sjt]

If you paid a collection and it shows up as a paid collection, is there any benefit to your FICO 08 scoring?

[Revelate]

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@sjt wrote:

If you paid a collection and it shows up as a paid collection, is there any benefit to your FICO 08 scoring?

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No, underwriting of course is a different matter.  I wonder how quickly FICO 9 will be adopted, was developed in part as a response to VantageScore but Vantage seems to have disappeared as a primary UW score at any rate.

[sjt]

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@Revelate wrote:

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@sjt wrote:

If you paid a collection and it shows up as a paid collection, is there any benefit to your FICO 08 scoring?

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No, underwriting of course is a different matter.  I wonder how quickly FICO 9 will be adopted, was developed in part as a response to VantageScore but Vantage seems to have disappeared as a primary UW score at any rate.

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Im glad FICO 09 changed that. Its doesnt make sense that there would be no scoring effect if you paid the collection. 

[Revelate]

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@sjt wrote:

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@Revelate wrote:

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@sjt wrote:

If you paid a collection and it shows up as a paid collection, is there any benefit to your FICO 08 scoring?

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No, underwriting of course is a different matter.  I wonder how quickly FICO 9 will be adopted, was developed in part as a response to VantageScore but Vantage seems to have disappeared as a primary UW score at any rate.

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Im glad FICO 09 changed that. Its doesnt make sense that there would be no scoring effect if you paid the collection. 

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FICO and financial institutions are kinda fire and brimstone types unfortunately and I guess "the data didn't support it" making a difference for those that got righteous on a collection vs. those that didn't... though we know that UW absolutely cared on that point.