@Anonymous wrote:I have a big dilemna right now. I am down to ONE baddie on my report. It is a $150 medical collection from 2011 so it has taken its toll on my score. It is due to come off in 2017. Since it is older, does it affect my score less?
Some say leave things like this alone because it will update to current and start all over. I was on the phone with EX today and the rep would have removed it with my other collections had it been closed and not still open. *ugh* I questioned this account because I knew I was living in another state at the time they said it occurreed but I knew I had been to this diagnostic center before. I think I paid it but can't prove it. Here is the dilemna, I found a disc with the MRI results. The date of service is actually April 2009 - they are reporting it as January 2011. Do I pay it then dispute the dates of service so it will come off sooner? Will that reset the dates to current if I am understanding it correctly? As it stands now, does it affect my scores less since the account is so old? I don't know what to do. If it weren't for the fact it is the only "baddie" on my report, I wouldn't even fool with it. As far as a PFD, it isn't happening with this CA (Fox Collections). I tried that before with another account. Leave it or try to resolve it???
It affects your score less than a collection tacked on to the report today, but non-zero.
A lot depends on what you're trying to underwrite, anecdotally it hurts a lot more on older versions of FICO than newer ones because it keeps you in a dirty bucket and that's going to limit your maximum score: i.e. it's unlikely you're going to get above a 720 on a mortgage application with it's still being on there. In my case with a tax lien and a paid collection from 2010 it's doubtful I get above a 700 even as an example.
The dates unfortunately aren't the issue, the collection is filed at a certain date and that's the correct one... and it's usually well after the dates of the service itself. The rest of the question is best asked in the Rebuilding forum really, but if you think you paid it, I'd personally be working towards demonstrating that I did, or making them prove that I didn't.
@Anonymous wrote:One thing I read with the latest scoring model is that paid collections will no longer count against credit scores. How long before lenders use that model is anyone's guess but it will definitely help and make me reconsider this issue. I am pretty sure the vantage score model is set up this way.
Vantage Score 3.0 and FICO 9 algorithms both exclude paid collections; VS 3.0 is likely in the hands of a few lenders right now (FICO is still the big dog though, small amount of a small marketshare), I'm not certain if FICO 9 can be purchased yet by lenders, and it's even less likely that they have adopted it by now even if they could.
Unfortunately the GSE's have publicly stated that they're "happy with where they're at from an underwriting perspective" which suggests they will not be switching off their mix of '04/'98 scores so it'll be a while before it happens in the mortgage market... the new algorithms are good for consumers, but when the big ticket item is on the old standards, I'm not certain how much it benefits. Oooh another shiny CC, whoohoo!
Auto lenders though I think have a much greater likihood of adopting FICO 9 though so at least that might see some improvement for those of us with mixed files in the nearer future.
@Anonymous wrote:Great info Revelate and that helped me make a decision. I am not going to deal with this CA. I am going to call the clinic I used to have my MRI's done. If at all possible, I am going to pay them tomorrow. The way I understand things to work....I can request a DV from the CA. They in turn will verify with the clinic and send me a letter they verified. OR I can verify myself, pay original clinic and file dispute that debt is paid (provided the stars and sun are all aligned and rainbow unicorns are dancing in the sky).
I was really just hoping that the longer a collection is on a report the lower it impacts scores. It really doesn't sound like that is the case so I will attempt to fix this.
You really should, any derogatory is a serious PITA when it comes to scoring... I have no hope of clearing 2 of my 3 remaining derogatories, and I'm going to take an absurd flier on the third with the State of California, but my scores are going to be held back for years to come with their still being on there. On the plus side I have everything I want from a credit perspective now, I should be able to get an easy first mortgage with my current scores, and when I will likely need to shop for a real house (i.e. includes yard) the remaining negatives will have fallen off and I should clear the 740 mortgage hurdle. Knock on wood haha.
@Anonymous wrote:Experian removed an old closed collection. My score jumped up 21 pts. TU is still investigating. This medical collection is all that is left. I called the OC and they have no record of my SSN and stated I don't owe anything. I decided to dispute it with Experian only to "test the waters". I don't see how it can' remain on my report if the OC is telling me that I don't owe anything. It is interesting to do this one account at a time and watch the impact each step is having on my credit score.
I'd post in the rebuilding forum; if the OC has no record of you, that should be addressible.