0
Will having a payment plan with a collection agency greatly reduce your credit score?
Wiki User
∙ 13y ago
No.
Once a person is being threatened by a collection agency, there is a high liklihood that the damage to the credit report is already done - a chargeoff or collections transline will already be in your credit report.
Having a payment plan merely gets the debt paid and on-time payments are usually NOT reported (however, if you miss a payment, that company can and will send a negative tradeline to further damage your credit reputation).
Wiki User
∙ 13y ago
Add your answer:
Earn +20 pts
Can a late payment of an electric or cable bill lower your credit score?
Only if it goes to a collection agency.
Is a collection agency obligated to remove debt from your credit report?
No! The only obligation of the collection agency regarding a debt is to accurately report the debt...i.e. balance outstanding, current status, and payment history. However, if you are paying or contemplating paying a collection agency, it would be wise to negotiate a positive outcome...i.e. the total removal of the account from your credit profile in exchange for payment. This should be negotiated prior to paying the collection agency and the agreement should be in writing.
Can a credit collection agency pursue payment on an account that has been closed for 10 years?
Yes, there is no statute of limitations on debt.
Can a collection be taken off of a credit report if a payment plan is arranged?
Usually the collection agency won't take it off until the bill is paid in full.
How do you find out from a collection agency who sent you to them for collection when you never was notified that you were in collection you discovered it on your credit report?
File a dispute with the credit reporting agency.
Can a collection agency for a non-credit card-type bill hurt your credit rating?
Yes Once a collection account is reported to your credit history, its origin no longer matters. If money is owed and it gets listed with a credit reporting agency as a collection account, it affects the main factor in your credit score: Payment history. See www.myfico.com/CreditEducation/WhatsInYourScore.aspx for details of a FICO score.
What do you do if an account was turned over to a collection agency but the original creditor accepted your payment in full?
Contact the original creditor. Provide proof of your payment. They need to retract the account from the collection agency. The account could have been sold to the collection agency or simply assigned to them. For your purposes, it does not matter which situation applies. You paid the original creditor and your credit report needs to reflect this. After they do what they need to do to get the account back; you then dispute the entries with all three credit bureaus. The original account should show as a paid collection and the other collection account should be removed from your credit report entirely.
If you settle an old credit card debt with a collection agency paying the negotiated price in full will the collection agency remove the collection from your credit report?
No the collection will not be removed from the credit report. They will show it paid in full.
Will a paid in full collection agency debt look better than a settlement payment on a credit report?
Yes, though both will damage your credit report to some extent.
Can a debt be classified as a judgment if you made a payment and the collection agency contacted you and you showed proof of payment and are paying the remaining balance?
if collection agency is not from your lender, but third party, then you need to fax them proof of your payments to your lender or financial insitution and have them send you a letter stating that they will not report you to credit bureau. and also have them contact the collection agency you are making payments. asian623 http://www.myspace.com/scionturboracing
How many times can a collection agency inquire on your credit report?
Unless you have given a collection agency written permission to pull a full credit report they are in violation of credit laws.
How do you use the word collection in a sentence?
If you don't pay your credit card you will get a nasty call from a Collection Agency demanding immediate payment.
