@Anonymous wrote:
Just got an alert from myfico. I logged in to see that my EQ fico score had increased 4pts because a collection account was added of $134. Of course I am still new to learning how my fico works but I am getting a bit fustrated with it's reporting to the point I almost don't trust it. A few weeks ago I had a score increase (according to myfico) of a whopping 48pts because of an inquiry. Now this collection account was added and it jumped 4pts. Can anyone help me understand this lol?
As Aahz said, it wasn't the collection that caused the score to increase, although the way that the myFICO alert looks, it can sure appear that way sometimes.
I'm guessing (and forgive me if I'm wrong) that you have at least one other collection on your report. Your first collection will generally cause a significant penalty to your score. The second (and third and fourth...), not so much. The theory is that if you have at least one collection on your report, that makes you a greater credit risk than someone who never has anything go to collection. But someone who has two collections isn't really that much riskier than someone who has just one. At least that's the theory (which I'm sure is borne out statistically), and that's reflected in the FICO scoring models.
So what probably happened is that this particular collection only resulted in a very small drop in score (if any at all), while over the last week something else happened that didn't create an alert but caused a small increase. Maybe you had an inquiry drop off or your accounts just aged past a certain threshold. The net change was +4, which showed up along side the collection alert. But in reality if it wouldn't have been for the collection, you might have seen an increase of a little (maybe even a lot) more than the four points.
