What Are Collection Accounts?

A collection account is an entry on your credit report that indicates default on a previous obligation. The original creditor either sold the defaulted debt to a debt buyer or consigned the debt to a collection agency. The goal of the collector, is to work to collect the defaulted debt from the debtor, or as much of it as possible. Collection accounts often are reported to the credit reporting agencies, and are allowed to remain on credit reports for up to seven years from the original debt’s first delinquency date, per the Fair Credit Reporting Act (FCRA).
How Do Collections Affect Credit?
Collection accounts are considered by both FICO’s and VantageScore’s credit scoring systems and can be highly influential to your credit scores. Collections fall under payment history, which is the biggest factor in your FICO Score calculation, driving 35% of your score. Consumers with collections on their credit reports are likely to have lower credit scores than consumers who have no collections. In addition to the potential impact to your credit scores, the presence of collections also can influence lender decisions. While the FCRA allows collections to be reported for up to seven years, we can dispute information with the credit bureaus and have it corrected or removed if it is inaccurate. This right applies to other items on your credit reports. Credit Services of America can also request a validation of debt from any collector requesting payment, and they must verify and validate the validity of the account per the FCRA. Its good to know Credit Services of America offers more than just Credit repair, and can assist you in negotiating any collections and negotiate for deletion! We are the only company in the Southwest to offer 4 services under one roof, (Credit Repair, Debt Settlement , Trade Lines, Student Loan Consolidation) and can assist you with ALL of your credit and debt needs!

A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or use the following link creditservicesofamerica.com to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!