How differently do the 2 different types of collection accounts affect FICO scores?

[Anonymous]

As far as I know, there are two different types of collection accounts that can appear on your credit report. There are those that are located in the "collection" section of your credit report and there are others that are tradelines that reflect an account going into collection status.

The accounts in the collection section seem to be those that have been purchased and held by 3rd party collection agencies.

The accounts in collection status seem to be those that have gone into collection due to excessive delinquencies.

Which collection is worse for your credit score?

[Anonymous]

The reason why I ask is b/c I had an account in the collection section recently deleted from all 3 reports, but my score went up only 4 points in EQ and 7 points in TU while going up almost 80 points in EX. I have one more account that reflects a collection status (in EQ and TU) and that will be deleted within 30 days. Will my score jump more than simply a few points since it is the last collection account to be deleted from my CR?

Current FICO scores:

EQ 651 TU 681 (final collection account appear on these CRs)

EX 736 (no collection accounts) 670 before deleting the derogatory account in collection section.

[Anonymous]

They are equally bad-

I think you will get those points when the last collection goes away.

[Anonymous]

Potentially 60 points or more???

[RobertEG]

Georgia, a collection is defined as an account placed by the OC to a third party CA for collection.  An account with excessive delinquencies that has not been contracted to a CA for collection activity does not fall under the FDCPA, and is not a true collection account.  The OC can alternately place the account into a tax status as a charge-off (CO).

Both are equally bad in credit scoring.  The major difference is in how collection activities can be taken on the accounts.  An account under charge off status is not protected by the FDCPA, whereas one placed into collection is.  For example, you cannot DV an OC, only a CA.

[llecs]

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@Anonymous wrote:

Potentially 60 points or more???

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Someone posted a 117 point bump with their last CA being removed. 50-70 points tend to be more common. My last CA removed increased EX by 58, and about 25 each on the others.

[damnedanddetermined]

How long does it take equifax to adjust your score, if a judgment has been removed?  And they removed it?

[Anonymous]

it is immediate.  If you pull the report and the collection is not on there, the score for that report will take into account the fact that the collection is removed.

[damnedanddetermined]

Thanks to all who replied....I just got a score watch...and for the judgement "removal"....I got  81points!!!!

Yeahhhhh! You know, before I started doing the "fico-thing"....my score was 536... that was a few months ago....I am now at 660.......700 club, Im knocking at the back door!

[fused]

Wow...congrats!!!!!!!