Interesting: Collections account DELETED, no score change

[Anonymous]

I had a collections account on my credit report from 2007 until last night.  (I knew it would fall off, I recently PFDed all collections on my report.)

What's interesting is that my score didn't budge even a single point upon removal.

Here are my questions:

1. Is it possible that at over 4 years old it was aged enough not to ding my score?

2. Is it possible that ANY remaining collection (they haven't all been deleted yet) dings the score, so whether it's one or five, you take a hit until they're ALL gone?

2A. If so, might rebucketing be in the future once they're off?

3. Do scores update immediately, anyway?

I spoke to a credit underwriter a while back who told me something along the lines of, "Look, you can have a FICO of 740 with a BK that's about to fall off, but we're still not going to approve you because of the BK" which makes me think that older collections are more of an issue with lenders than with a proper FICO score.

[kjm79]

Short answer is, yes, to all your questions.  Just like a piad or unpaid collection has not difference on your score.  A collection is a collection.  Congrats on getting the PFD's on your collections!! 

[llecs]

Where did you get your FICO score from? What service are you using to check it? And which CRA is this?

How many TLs report lates 90 or worse, including any CAs or charge-offs (excluding the BK)?

[GregB]

1. It was having less effect than a more recent collection.

2. You won't be likely to see a big effect until they are ALL gone.

2a. no clue but would guess there is a bucket that requires no collections or no negatives.

3. Scores update when you pull a new report/score based upon that report. You know it is gone so you pulled a report, right?

I had a substantial score boost when my only 30-day late dropped off after 7.5 years. I know it isn't supposed to have a big effect but perhaps that changed my bucket to include only those that have no negative info of any kind.

[Anonymous]

Thank you, kjm79!

llecs:

-I'm using Experian Direct.  As I write that, I realize that this isn't a true FICO and might not operate like one...

-I have 9 trade lines with 90+ day lates.  (I never filed BK.  Does filing lessen the sting of all those things?)

[Anonymous]

Thank you, Greg!

[llecs]

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@Anonymous wrote:

llecs:

-I'm using Experian Direct.  As I write that, I realize that this isn't a true FICO and might not operate like one...

-I have 9 trade lines with 90+ day lates.  (I never filed BK.  Does filing lessen the sting of all those things?)

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As you know, that's a non-FICO score we call a FAKO. IIRC, it is a PLUS score. IME, PLUS scores don't update all the time when you want them to even though they claim to in the service agreement. It's the same score found in CCT and I've had things added, dropped, and paid down with no score movement until days after the fact. Of course, the score is worthless, IMO. If that FAKO goes up, it doesn't mean your FICO would go up, and vice-versa. In fact, I think it was PLUS or maybe another FAKO called TransRisk that factors CAs into the history, which means you can lose points when added. Thank good ness FICO doesn't score CAs into the history.

Filing BK won't lessen the blow....it'll only make the score drop further. With time the baddies will drop. And moreover, you are taking the right action to get things removed. I have no doubt that some success will be found if you send out a herd of GWs on those lates.

[Anonymous]

llecs:

That's really encouraging about GW letters, thanks!

I sort of suspected this score was full of it, but have been in denial.

One quick question about what I quoted you on below:  could you explain, precisely, what it means that FICO doesn't score CAs into the history?  Do you mean once they're deleted, that some of the FAKOs continue to factor them in, but FICO doesn't?  Thank you in advance!

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...In fact, I think it was PLUS or maybe another FAKO called TransRisk that factors CAs into the history, which means you can lose points when added. Thank good ness FICO doesn't score CAs into the history...

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[llecs]

I should have said, "length of credit history". It certainly factors into your credit history but not the length per FICO scoring. Some FAKOs (as mentioned) do factor in CAs into the length and you can lose points by losing it even if you still have others reporting. But that's unimportant anyway. And it's not like you can buy your EX FICO from anywhere. EX blocks consumer access to their FICO, though you can get it from a couple of sources like PSECU, and other lenders or CUs.

[Anonymous]

Ah, got it.  Thank you!