Michael - Thanks for the tips - good ones to share with those needing a quick way to improve their score.

I agree with the credit limit part, but don't know about the not paying off collection accounts??  This is one of the reasons that I think that the credit scoring criteria should be public knowledge.

Bob Mitchell

ValueList Real Estate Services, Inc. 

Tony-Thanks.

Bob-The reason you would not want to pay off a collection account more than 2 years old is because by paying off the account, you are updating the "last activity" date of the negative account.  This makes it appear as if a negative activity occurred recently. If you left an old collection account alone, it's "last activity" date has been aged enough to have little consequence on your credit score.

Another quick tip: makes sure you apply for credit and/or have all of your credit with the same full name and address.  i.e. I shouldn't have one card as "Mike Byrne" and others as "Michael R. Byrne".  They should all have the same proper name and address.

This is good information when applying for a mortgage.  Different standards apply when applying for credit cards.  There is one exception to not paying a collection account that is older than 2 years old.....

if the collection account is being reported as having a current balance it may help to pay off the accounts that are more than two years old.  This depends on the size of the debt.  Some lenders may require thgat it be paid anyway.  Anything showing a current balance hurts your credit score.  Whqat we don't know is the true impact of having a more current date vs a "current balance".

Unfortunately, we don't know the algorythim so there is no 100% sure measurement on how the Unfair Isacc algorythim will adjust the credit score.

Kate- Thanks for the input!  I appreciate it and it is great to always learn something new.

Great information.  Some good tips to know.  Those are some helpful tips that are not too difficult to do.

Good tips, Thanks I just need my customers to follow through

Also be careful advising clients or customers about their debts. I NEVER tell a client not to pay a financial obligation. BUT, I will tell them "this is how paying this collection account will affect your score and your mortgage application." I concur with the pay off old collections advice...I have seen old accounts that have been paid and lowered the credit score. As far as the FICO score goes, the fact that an account is delinquent and recent has more impact then whether it has been paid. And remember, when dealing with creditors, get everything in writing