Did you know there are actually a dozen+ different Fico scoring products, several versions for each of the big 3 credit agencies and several product-specific models for Houses, Cars, etc?
Lenders do not update to the latest Fico version the way we all buy new iPhones. Many lenders integrate Fico scoring into proprietary models.
Having ANY collection will hurt you, period. Even under $100. Even if it doesn't drop your fico, American Express for example won't open you an account with an open collection. Any mortgage lender would make you settle the collection before closing. So in summary, i think your advice here is very bad. Yes, if you have a collection, you MAY be able to have it removed from your reports without waiting 7 years. But it's not black and white.
Right, if you put down 50% they're not taking any risk on you! They'll foreclose at a profit! Regardless, name me a mortgage underwriter that will close your loan with an OPEN collection item and I'll be truly surprised. So if you've been thru this, who was your underwriter? (Not your broker..)
Risk profiles at a company like Amex are sophisticated. But you're somebody who apparently is sharing his high-earner status here, but you don't think that was an important caveat to your original post? It's like you're saying "CREDIT DOESNT MATTER*" and in fine print you're saying "if you have enough cash to put 50% down on things and have a high income!"
It's bad advice to give, which was my point, and one I'll standby. Nothing personal of course.
Lenders do not update to the latest Fico version the way we all buy new iPhones. Many lenders integrate Fico scoring into proprietary models.
Having ANY collection will hurt you, period. Even under $100. Even if it doesn't drop your fico, American Express for example won't open you an account with an open collection. Any mortgage lender would make you settle the collection before closing. So in summary, i think your advice here is very bad. Yes, if you have a collection, you MAY be able to have it removed from your reports without waiting 7 years. But it's not black and white.