Impact of number collection accounts

[Anonymous]

Obviously having no collections is ideal, but is there any difference between having, say, 10 collections accounts vs 5 (arbitrary values). Specifically, I'm asking about Fico 2,4,5 and FICO 8. I have collections debts and credit utilization is approaching 50% with a total ag limit of 13200. I'm hoping to buy a home by Jan 2021 when my lease ends. 

As I can't afford to pay down that debt to below 30% (unless the VA fixes their screwup making all of this a moot point) without a loan. As I have a couple collections that adamantly refuse to delete the accounts, GW or PFD, is there any point to pursuing PFDs? Or would it be better to put that money toward my NFCU cashrewards signature card in the hopes that it will help get them to increase my limit on that card?

[donkort]

Are those scores in your signature your present scores?

If you list your collections:

The amounts, the collection company, the original creditor, the Date of First Delinquency (DOFD), and the date of deletion, there are people here who can help you.  Some collection companies, as you know, delete upon payment automatically.  Some might make a deal to "pay for delete."  Others are more stubborn than that.

You would get all those with the credit reports from annualcreditreport.com, which is free.  Just make sure to save the credit reports on your computer, AND print them out.  Because you only get those reports for one day. 

My impression is that there is not a great deal of difference between the credit score of somebody with 5 collections, and somebody with 10 collections, if other aspects of their reports are similar.  You are penalized the most for even having one collection.  Your credit score is slighly better when your collections are paid----because your overall utilization is lower.  

Within FICO 9, paid collections are ignored in scoring---but what lead up to the collections----the lates---are still considered in scoring.

In order to secure a mortgage, you would probably have to pay off your collection accounts.

[Anonymous]

As of 08 MAR 2020, my FICO 8 scores are EQ: 604, TU: 640, and EX: 623. 

My  FICO 3 bureau doesn't update until 12 MAR 2020, so I have no idea what my FICO 2/4/5 scores are currently. Though, my FICO 8 and 9 scores did go up significantly. My Fico 9 score is now 657, but that's about useless. 

[Anonymous]

Oh, the chargeoffs have been paid off, at the expense of my credit utilization. I will update on thursday when I get my info. 

[donkort]

High credit utilization is better than unpaid charge-offs.  As long as you pay the minimum payment before you're 30 days late.

Which companies had the charge-offs?  I hope you were lucky enough that they were Portfolio.

[Anonymous]

Since the scores listed above, Merrick Bank did the charge off that wasn't sold. I settled that and it now shows 0 Bal. Apparently they refuse to delete tradelines. The Credit One Bank Charge Off was sold to LVNV Funding. The collections account was settled in Full and is pending deletion. That might not show until next month. We'll see how much impact that has.

[donkort]

I hope you get into the upper 600s across the board--or higher.

[Anonymous]

Same, though I'll settle for the middle 2/4/5 score being above 620. Now I just wish I could get a debt consolidation loan so that I could get my util down. Fortunately, my NFCU secured card is about to hit 6 mo without a late payment next month. So that'll lower the Util rate a bit.

[seattletravels]

If your signature is correct,  you're also carrying a small balance on your USAA card.  Pay that down to zero so that you're only carrying a balance on your Navy card. 

[Anonymous]

Oddly enough, my experience went down 3 points earlier then when the USAA balance came up from 0, it went back up 8pts. 🤷🏻‍♂️  All of my non cashrewards cards will be at 0 by the first. 🤷🏻‍♂️