Collection Accounts Series #2, Collection Agencies

Collection Accounts Series #2

 

A new collection agency account hitting your credit report will cost an otherwise perfect credit report 65 to 125 FICO points. This is true of mortgage-type FICO scores, the type of credit score we know by far the most about.

Take-away: Paying the collection account does NOT raise mortgage-type FICO credit scores. Paying could possibly drop your FICO credit scores up to 60 points. More will be explained later in this Series.

We have about 97% success getting collection agencies accounts deleted permanently from ALL Credit Reporting Agencies.

Collection Accounts Series #1

Different types of Collection Accounts

 

Collection Agencies are companies which collect for other companies or people who are owed a debt. Other types of collection accounts are:

  • Student loans in “default”, the person who owed the money stopped paying
  • Charged-off accounts, this type of collection account will have it’s own Series of social media posts. Charged-off accounts are usually credit cards a person stopped paying but could also be loans paid with the same payment amount monthly.
  • “Debt buyer” collection accounts. These companies buy “bad debt” also known as defaulted debt from other companies and try to collect.
  • Vehicle repossession collection accounts, these are also “charged-off accounts like the sentences above.
  • Taxes unpaid to a government agency whether it is a local government, county, state or federal debt that is owed.

At 740Plus, We have about 97% success getting collection agencies accounts deleted permanently from ALL Credit Reporting Agencies.