How much will my Fico increase after I remove a collection?
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I have 5 collections on my report, all from the same company. They agreed to delete it from my report once I pay them off. How many points will my Fico go up once the collection are gone?
Hard to tell. Probably 100-200 points
A fair assumption would be 100-200 points, but it’s really very hard to predict.
It depended on so many factors – how old are the collection account, what the balance is and what other derogatory items you have on your report.
Are these items a single entry time medical or utility bills? If that’s the case than a pay-for-delete may work.
If, on the other hand the items are regularly reported items like credit card accounts, car loan or other installment loans, than pay for delete won’t work because the original charge-off will remain on your report.
Collection agencies can only remove what THEY report. The original creditors charge-off would remain on your report, and your score will remain low.
In fact – It would even look worse since your payment to the collection agency would not show on your report, making it look like the items are resolved.
See why-pay-off-debts.html and how-to-pay-off-debt.html for a more detailed explanation.
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