Being late on your debt payment is different from having your debt to go collection. As per the best Bad Debt Collection agencies, a debt collector collects debts that are due in the past. There are different kinds of debt collectors, it includes lawyers, individuals and such other companies that buy debts from other creditors to try to get them paid. When the debt goes into collection, it means the 3rd Party Debt Collection agency or company is trying to retrieve what you owe.
Impact on your credit bureau
A collection item has a huge impact on the credit bureau. A high score reflects the more points drop in your score. Such as, if you have a 750 credit score, you could see the drop in a score by 40 to 60 points from a single collection item. A collection of items stays on a credit report for at least seven years. Even after you pay for all the collection items, it doesn’t disappear. Fortunately, things are now changing with FICO 9. If you pay off a collection item, it will no longer be into your FICO score. In the current model, the best way for a collection item to disappear is you need to be patient and wait for seven years from the date it is first reported. It means seven-years from the date that you become 180 days past due. Read more...
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