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Collection removal affecting FICO?


Taniaeve
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A collection item is going to be totally deleted from our TU report this week, I'm wondering if anyone knows how much this might raise our FICO? It is 614 right now and we need it to be 620 to buy our house. Thanks for any help!

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Well, it depends on a lot of factors...

How old is it?

Do you have any other negative info?

Is it your oldest tradeline?

etc etc

Score jumps vary from person to person. Some have even seen scores go DOWN once a neg is deleted just because it shortens their overall history.

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I'm in a similar situation with some student loans about to be removed after rehabilitation. Good luck...I hope your FICO jumps at least a little. I'm in the same neighborhood as you too...right on the edge. Let us know what happens. I'd be willing to bet if your overall credit history is pretty long, this deletion will give you a little nudge.

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My six year paid collection was 296 clams and when it fell off, my score went up over 30 points.

However, there are a lot of interdependencies between one factor and another. These nuances still play a big role and in some ways, fits into the Fair Isaac philosophy that no one single item dominates your score although they do have a significant influence.

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<blockquote>Originally posted by matt2402

I'm in a similar situation with some student loans about to be removed after rehabilitation. Good luck...I hope your FICO jumps at least a little. I'm in the same neighborhood as you too...right on the edge. Let us know what happens. I'd be willing to bet if your overall credit history is pretty long, this deletion will give you a little nudge.

</blockquote>

Can you give me any more info on rehabilitation of student loans? How does that work?

:) :)

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I'm just finishing up my student loan rehab. If your loan has defaulted and is now held by the guarantor, they probably have a rehab program. Mine was with American Student Assistance. You sign an agreement with them (IN WRITING!!) and you agree to make 12 consecutive monthly payments. After those payments are made, they sell your loan to a new lender and delete the negative items on your credit report. I've completed mine and I've started paying my new lender...I'm just waiting for the items to be removed from my CR...I'm hoping for a little jump in FICO whent that happens. My EQ is 619 and my TU is 637...so I'm right on the edge. Good luck!

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