Score Impact of a Collection

[Caardvark]

I realize every file is different but is there any consensus on the impact of a single collection on one's credit report? I just did a PFD with Portfolio Recovery on a collection ($849) and am wondering what minimum/range of score increase I might expect. 

It is my only collection account but I do have some lates from 90-day lates from 3 years ago as well (Have had no lates whatsoever in the last 22 months)

Thanks

[Anonymous]

90-Day lates are considered severe delinquencies, on par with collections.  When a derog is removed, but the report also has other derogs that are just as bad, a person typically gets little benefit.  The benefit comes from getting rid of all of the "worst tier" derogs, then again more benefit from getting rid of all derogs in the next tier (bad derogs but not the worst you could have), and so on.  If you imagine a report with lates only, it would be: get rid of all the Day 120s, then all of the 90s, then all of the 60s, etc.  A report that had one day 90 and several Day 30 would likely get little/no benefit from having all Day 30s removed.

All that said, it would be great to discover that a person could have Day 90 lates and yet get substantial benefit from the removal of all collections.  So please keep us in the loop about what happens.

[Caardvark]

I will definitely update the thread. I pulled my 3B via the CCT trial earlier this week and will pull it again when the collection is removed. Per PRA it will be deleted within 30 days (only 23 days left).

[Anonymous]

I did a PFD with 2 accounts that are being handled by the same collection agency in late october, to my surpise.. I get a notification today that they updated the collections to reflect "settled in full" which was NOT was I was told would happen.. I called in and they said this is normal and should wait the 30-45 days.. fingers crossed they stick to their promise!

[Brian_Earl_Spilner]

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@Anonymous wrote:

90-Day lates are considered severe delinquencies, on par with collections.  When a derog is removed, but the report also has other derogs that are just as bad, a person typically gets little benefit.  The benefit comes from getting rid of all of the "worst tier" derogs, then again more benefit from getting rid of all derogs in the next tier (bad derogs but not the worst you could have), and so on.  If you imagine a report with lates only, it would be: get rid of all the Day 120s, then all of the 90s, then all of the 60s, etc.  A report that had one day 90 and several Day 30 would likely get little/no benefit from having all Day 30s removed.

All that said, it would be great to discover that a person could have Day 90 lates and yet get substantial benefit from the removal of all collections.  So please keep us in the loop about what happens.

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It was my understanding that anything 90+ carried the same weight and that weight basically carried almost to the end of the 7 years.

[RonM21]

OP I had collection accounts taken care of a number of years back, but I also still had about 3 of the 30-day and 2 60-day lates all reporting in a row on the same installment account for my car. This was due to Santander taking over and it was a mess. But once the collections disappeared I did gain some points as each one came off. However, once the lates finally disappeared from Santander, I probably gained anywhere between 30 and 40 points on each bureau.

Your situation may be different, as it is for each person. You having 90 day lates makes a bit of a difference as mentioned earlier. It will be interesting to see what the result is. Either way, I hope you get a nice boost!