Myfico factor collection account balances when determining fico score?

[Nvr]

I had something I cant understand happen over the weekend. I received an alert from Myfico stating that there has been a change to my credit report and that one of my accounts had a balance increase.  When I logged on to check, the balance increase they were referring to was a  3-year old collection account. Why am I been alerted about blance increases on collection accounts? Does this mean collection account balances are being factored in my credit score?  I thought it did not matter the amount of the collection, only that the collection exists.  Another thing, I actually had a current "open" credit card account balance that actually DECREASED by $245, thus reducing my utilization by 3% from 26% to 23%,but that was never mentioned in the email alert, nor did my fico score change one point as a result. Again, did Myfico factor (and why?) the collection account balnce increase of only $12.45 and ignore the open credit card blance decrease of $245?  

[llecs]

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@Nvr wrote:

I had something I cant understand happen over the weekend. I received an alert from Myfico stating that there has been a change to my credit report and that one of my accounts had a balance increase.  When I logged on to check, the balance increase they were referring to was a  3-year old collection account. Why am I been alerted about blance increases on collection accounts? Does this mean collection account balances are being factored in my credit score?  I thought it did not matter the amount of the collection, only that the collection exists.  Another thing, I actually had a current "open" credit card account balance that actually DECREASED by $245, thus reducing my utilization by 3% from 26% to 23%,but that was never mentioned in the email alert, nor did my fico score change one point as a result. Again, did Myfico factor (and why?) the collection account balnce increase of only $12.45 and ignore the open credit card blance decrease of $245?  

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When did your CC balance report a decrease on EQ? 

Any TL that updates on EQ with a balance change (as set within your settings) will lead to an alert. While a balance change on a reported CA won't impact you, the updating of the reporting date can so it's important to track those changes.

[Nvr]

Thanks for your reply and clarification with regard to CA balances being factored into Fico scores. The decrease to my CC balance appeared on my Equifax report on 4 Jan (my CC company updated to CRAs on 3 Jan).  The collection in question appeared on my report several years ago, so it is not new.  I thought maybe a utilization decrease of 3% would be enough to trigger at least a minimal increase to my score, but Iguess that's not significant enough.

[llecs]

You should have received an alert for the balance change by now if EQ changed on 1/4 and you saw that on EQ somewhere. Now that wouldn't mean a FICO change. I've paid off CCs by the thousands and still no change in FICO. It all depends on the change in individual util to a very minor extent, but mostly change to your overall util. If overall is now at 23%, I bet you could see an increase if it reports 19% or less overall provided util is a top negative factor.

[Nvr]

Thanks so very much for your reply and explanation.  I kinda figured that the untilization percentage decrease may not have been significant enough to trigger a positive point change with Fico, even though it went up by 10 points with Equifax.

[Nvr]

Wait, when you say update collection account reporting date, what do you mean?  Are you saying that as long as a collection agency reports (updates) my balance every month, which is what they have been doing, then Fico will factor that into my credit score (negatively)?

[Anonymous]

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@Nvr wrote:

Wait, when you say update collection account reporting date, what do you mean?  Are you saying that as long as a collection agency reports (updates) my balance every month, which is what they have been doing, then Fico will factor that into my credit score (negatively)?

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No, FICO doesn't care about a 3rd party collection agency balance and it isn't scored.  Just the fact that it is a collection is.