Paying on old collection account

Anonymous · ‎07-31-2009

Is it true that if you make a payment on a collection account you have had for some time i.e. 6 years, and you haven't paid on it up until then that this could actually lower your score?

AndySoCal · ‎07-31-2009

It is true.

Message Edited by AndySoCal on 07-31-2009 04:54 PM

FICO Scores XPN v8 805 V2 831 (SDFCU) TUC V 8 800 07/25 EFX Bankcard v8 822 EFX FIC0 v8 808 Vantage score 4.0 817 via JC Penney
JC Penney 10/2008 4,700 US Bank Cash 08/2010 12,000 Citibank Custom Cash 5/2015 14,100, State Dept. FCU 06/2023 30,000 02/2024 Redstone FCU Signature VISA 10,000 08/23/2024 Commonwealth Credit Union 15000 07/25 Walmart One 5000 12/04/25
Banks and Credit Unions: Lafayette FCU Fortera FCU State Department FCU Redstone FCU Hughes FCU Commonwealth FCU Veridian Credit Union Utah Community Credit Union
My personal blacklist Axos Bank, Bank of America, Synchrony Bank Capital One TD Bank BMO Langley FCU Paypal Barclays

Anonymous · ‎08-01-2009

it happened to me

Anonymous · ‎08-01-2009

I wonder why it works this way?

llecs · ‎08-01-2009

I've been challenged on this topic, but, IMO, paying a CA can lower your score if you pay without a PFD. One thing we all can agree on is that paying a CA will not help your score.

The mere presence of a CA reporting is the damage. Creditors don't like to see it reporting because it indicates that you had credit troubles in the past. Therefore, when you pay a CA without a PFD it won't increase. It doesn't matter if you owe $0 or $10,000, the damage is equal.

Where we differ is whether or not your score can drop. Payment will always change the reporting date and the DOLA. I'd argue that changing these dates from an older date (esp. true if the CA hasn't updated in a long while) to a newer date. FICO would see this as a newer collection vs. seeing it as an older one. My 2 cents anyway. Some have reported no change after PIF without a PFD and some have reported drops.

Anonymous · ‎08-02-2009

Sorry llecs,

I am a rookie, so could you tell me what IMO,PFD and DOLA stand for?

Thanks

Anonymous · ‎08-02-2009

Actually i am going to take a guess. DOLA (Date of Last Activity?)

PFD=Something file date?

IMO=Not sure

llecs · ‎08-02-2009

lrand wrote:
Actually i am going to take a guess. DOLA (Date of Last Activity?)
PFD=Something file date?
IMO=Not sure

Close....DOLA is Date of Last Activity. This date can be updated with a payment, updated via a dispute, DV letter, etc.

PFD = Pay for Delete.

IMO = In My Opinion.

Common Abbreviations

RobertEG · ‎08-03-2009

But how can the update of a DOLA on the consumer part negatively impact FICO? It does not, of course,update DOFD.

Is the impact of old derogs updated in FICO scoring based on a subsequent DOLA payment against the derog?

AndySoCal · ‎08-03-2009

It is the account re-reporting and the date reported beiing brought forward in time that causes the problem. It is how FICO is intrepreting the re-reported./updated account that is the problem. I have "heard" that this will be corrected in the new FICO 2008 score model. I am not 100% sure if I am correct or not.

FICO Scores XPN v8 805 V2 831 (SDFCU) TUC V 8 800 07/25 EFX Bankcard v8 822 EFX FIC0 v8 808 Vantage score 4.0 817 via JC Penney
JC Penney 10/2008 4,700 US Bank Cash 08/2010 12,000 Citibank Custom Cash 5/2015 14,100, State Dept. FCU 06/2023 30,000 02/2024 Redstone FCU Signature VISA 10,000 08/23/2024 Commonwealth Credit Union 15000 07/25 Walmart One 5000 12/04/25
Banks and Credit Unions: Lafayette FCU Fortera FCU State Department FCU Redstone FCU Hughes FCU Commonwealth FCU Veridian Credit Union Utah Community Credit Union
My personal blacklist Axos Bank, Bank of America, Synchrony Bank Capital One TD Bank BMO Langley FCU Paypal Barclays