How much does your credit score drop when an account gets turned over for collection?

Question

I already have 7 neg. things on my report and I am in the process of paying everything off, but I got a letter from another account I had that said they reported my account to the national credit agency. Im despretly trying to fix my score so I am able to buy a vehicle. My score was already 566. HELP!! TIA..

Answer 1

This will vary dependent on other credit factors, however you can contact the company and negotiate a settlement. In most cases they will accept at least 50% of the bill in full, sometimes a little more dependent on your financial situation. Once you do this your score will begin to go up, If you are paying off your bills this is good, however do not close your accounts as this will help improve your score. ex: if you have a credit card with a credit limit of $1000 and you owe them $100 your score will increase. If you close this account your score will decrease, applying for new credit will decrease your score as well. So work on raising your score and in a few months you will be able to get that car. Make sure you make timely payments and pay more than the minimum charge, this also will increase your score. You should be able to get into the 600's range within a few months. This is consider fair to good by people who give you credit. You are eligible to get one free credit report each year, utilize this as it will help you keep up with your credit. In a few months after you have followed the above suggestions review your score and wait until it is up before you apply for any credit. The more credit you apply for the more your score will decrease.

Answer 2

I had excellant credit and then I refused to pay a bill that I had problems with. They put it in collections and I was turned down for a auto loan. That happened five years ago and I have since been able to get a new car loan with a low interest rate and a mortgage. This one and only collection, now a charge-off is still in my credit report . My credit score is 765

Answer 3

No, you could't get this merchandise bumped off. it rather is a valid damaging merchandise. It makes rather no distinction that no person contacted you with regard to the relax stability due on the scientific institution bill. You owe and it became YOUR accountability to make advantageous your assurance paid and which you took care of although your assurance did no longer pay. You assurance sent you place of work work displaying what they might pay. you're able to have accompanied as much as make advantageous the bill became paid. normally scientific vendors don't have the staff to do collections on stunning balances. there is ususally minimum attempt. It in lots of instances takes months going returned and forth with assurance earlier any fee is won and any be conscious on the late volume ought to actual have been sent to the handle of their records, long after your positioned up place of work forwarding expired. additionally, scientific vendors do no longer document to the credit bureaus. It fee money to try this and it rather has no fee to a scientific provider. The debt became as a replace sent to a collection enterprise who stated the debt to the credit bureaus. each so often you could negotiate a pay for delete -- you pay they delete the information out of your credit document. no longer all sequence companies will agree. the trip journeys, particularly on the top of the month, is a robust time to barter settlements. creditors have quotas. Get any contract contract in writing and don't provide the collector direct get right of entry to on your financial enterprise account.