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anteater2014

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How did my score drop 96 points from a $60 med bill sent to collections?
I had a 96 point drop in my credit score and the only thing new is a $60 medical bill sent to collections.
If someone could assist me with this, I'd appreciate it.

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Medical Bills less than $100 don't count

Medical Bills in collections with balance less than $100 are considered "nuisance accounts".  They are ignored in calculating a TRUE FICO credit score. However, many of the pseudo credit scores like CreditKarma and others (using Vantage or other system), may not ignore them.  So $60 in collections may decrease your CreditKarma score but does not affect TRUE FICO.

CreditKarma may say your credit score is signficantly higher or lower than your TRUE FICO credit score from the big three (TransUnion, Experian, Equifax).  The biggest difference is in the weighting of the 5 components of your credit score.  For example, CreditKarma uses Vantage scoring that weighs "Payment History" as 25% of your credit score but True FICO it is 35%.  If you have late or missed payments, your True FICO will be much lower than CreditKarma's because of that difference alone.

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Late payments and items sent to collections can send your score plummeting 100 points, as you've discovered. Pay all bills on time. If you can't, then you ned to call the creditor immediately and keep them informed as to why.

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As already said, it depends on the scoring model used if collections below one hundred dollars are factored in or not, but you must know that collections are one of the worst things for your credit, you never ever want any account to go to collections, you should do some research on "Pay For Delete Agreements" and try to get this paid and REMOVED from your reports. Your future self will thank you if you spend some time today reading all that you can about credit.

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