Never Pay Collections as a short-term strategy to improve your FICO?5 credit score.

Never Pay Collections as a short-term strategy to improve your FICO?5 credit score.

Dave Sullivan ?? Dave Sullivan ??

Dave Sullivan ??

VP of Marketing & Digital Growth | Crafting ROI-Driven Strategies at People Driven Credit Union

发布日期: 2015年12月14日
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In the mortgage industry we are required to use FICO?5 and that is dictated by Fannie and Freddie. The version that we use to underwrite a mortgage in 2015 is FICO?5 with that version of the FICO? score if a borrower pays a collection that has a two year old reporting date and you make a payment, it changes the reporting date on that collection to today. Bringing the reporting date current will decrease your credit score every time (except one specific situation that we will talk about shortly) FICO?5 looks at the collection Like it just occurred.

 If a consumer has that specific situation and they pay off the collection, then the next month their score will increase.

There are two caveats;  Click here to see them

 

 

 

David Brooks III

REALTOR? Principal Broker Owner- Property Manager | Real Estate Investor

9 年

Nice post!

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