Time and impact of collection accounts on FICO score

[valley_man0505]

Okay, I know that a more recent collection hurts my score more than an older collection, but how is the "age" determined?  Is the impact determined by when the CA actually opened the account?  Or when they last reported?  Or does it only have to do with when the original delinquency occured with the OC?

For example, if a CA suddently pops up on my CR today for a utility bill that is 5 years old, will that hurt me more or less than a CA who started reporting a 3 year old account 1 year ago?

[valley_man0505]

bump...the boards have been pretty quiet lately--everyone must be resting up for Thanksgiving

[RobertEG]

As you know, the FCRA is crystal clear on CA falloff dates, but does not control interim FICO scoring in any way whilke it still appears in your CR.

The DOFD controls FCRA dropoff date, pursuant to FCRA 605(c).

CA actions have no affect on CR falloff date (other that adding an additional six months from the DOFD simply because it was placed into collection.)

All you can be sure of is that it must drop from your CR, and thus scoring, at 7 1/2 years from the DOFD.

As to how much the impact on FICO scoring lessens over the years, that is a part of the proprietary trade secret FICO scoring algorithm, and all you can get on here is anecdotal experience. 

My experience is that you can expect a max gain of two points a month for aging of a maj. derog.

The bad news is that aging now will be probabably be slow, but the good news is that popping up after 5 years only subjects you to any FICO impact for another  2 1/2 years, then it is gone by law, and you will then get a big jump!

Message Edited by RobertEG on 11-27-2008 07:40 PM

Message Edited by RobertEG on 11-27-2008 07:45 PM