Account Type Affect on FICO

[brokeinok]

How much weight is given to the type of account as listed on the report?

For example, collection account vs. factoring company account, late on an installment account vs. late on a revolving account? Lates on a mortgage vs. lates on a car loan? That type of thing.

Also, does the balance due factor into it? In other words, say you have a collection account for $100 and another for $2000, does the $2000 collection weigh more heavily on the FICO or are they all treated equal.

Just curious, trying to come up with a new attack plan and wanting to start where I'll see the most impact on my FICO.

[Amerikaner83]

Personally, I think a collectoin is a collection, the amount is not as important. But the DATE is. A recent collection will affect your score more than one that's 5 years old.

Same with lates. Late is late - but it'll hurt more if it's recent.

[brokeinok]

Thanks! That helps alot in forming my plan. So attacking the newest, most recent first... in that case, I'll definitely go with the goodwills to begin, most of those are accounts that have a long and perfect history but got behind last year after my divorce. So removing those seven back into the "good standing" category should really push my FICO upwards..... keep your fingers crossed, next week we begin the GW push!!!

[willingtocope]

The first problem is...there are like 17 different FICO scoring models ranging from "here's a sucker that CC companies will make lots of money off of" to "here's someone that probably NOT going to default on their mortgage".

One of those 17 scoring models is the one you see...and that one is NOT the same as what any potential creditors will see. So...trying to "tweak" your FICO scores is like trying to influence the weather. The things that control it are beyond your control.

But...in general...collection accounts and factoring company accounts both hurt about the same. Balance doesn't matter. Age might.

Lates on secured loans (car, mortgage, etc) will hurt if you're applying for another one of those.

Lates on CCs probably actually help your "can I get another credit card" score. They like people that they can charge penalities to.

[brokeinok]

Lates on CCs probably actually help your "can I get another credit card" score. They like people that they can charge penalities to.

LOL!!! Ain't that the truth??

Well, I think I'll take both of your suggestions and attack based on age of the negative which means good will letters first. Thank you both for your insight, the FICO thing really confuses me. I'm getting a handle on the "legal" part of this repair thing though.