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How collection notices works against you : Debt Declaration – Bad Credit Help & advice, Debt Settlement Tips
Debt Declaration – Bad Credit Help & advice, Debt Settlement Tips
Finance & Loans

How collection notices works against you

February 3, 2015 by · Leave a Comment 

If you have debt that you neglected to pay on time or not paid at all, it could result in you getting a collection notice. In order to get one of these, your debt should be long overdue, normally more than 180 days. You may get the notice not from the company you owe the debt because many companies instead of dealing with each individual delinquency, lump several delinquent accounts together and sell to debt collectors.

Having a collection recorded on your credit report could cost you dearly. It will result in reducing your FICO score significantly.

The amount in collection is important in terms of the damage it can do your credit score. For example, a $100 collection notice may not create a significant impact on your credit standing. However, a larger amount in collection may damage your standing.

Also, timing of the collection is important. If the collection is more recent, it may stay in your records for a while impacting any new credit applications. As long as you have unpaid or unresolved collection notices, it will continue to hurt you financially. This is why it is important to resolve disputed collection as well as delinquent debt immediately.

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