How collections affect your credit score.
1) My collection.
Medical, $2 or $3k. No credit score issue. Couldn’t get checking account.
2) Client’s collection/derogatory credit.
10 days PTC, Soft pull. Re-pull. 620 min for home loan.
642 to 500. Mortgage loan denied. FHA loan, $2,000 or less total don’t have to be paid off. Over $2k, use 5% of balance as mo pmt, or show payment history.
3) Pay something each month.
Negotiate lower balance if you can pay in full. Get it in writing before paying in full. Get paid in full letter in writing. Send paid in full letter to credit bureaus (resource).
Collections are like an anchor keeping you stuck in one place. Baggage. Eventually roll off after 7 yrs? Imagine being 1 collection away from getting a home loan. One 90 day late student loan away from getting a home loan.
Equifax.com, Transunion.com, Experian.com.
To send paid in full letter. Don’t assume who you paid will report to credit bureau.
I’m Greg Whitaker reminding you:
Get Your Mind Straight. Get Your Money Straight
Debt Shepherd 2017, All Rights Reserved