Reply
New Member
Posts: 9
Registered: ‎10-28-2012
0

Do collection agencies drop your credit score?

[ Edited ]

This might be a stupid question, I only assume they do..but when a collection agency shows up on your credit report after a debt has been sold/transferred, you are essentially being dinged twice for the same debt.  That doesn't seem exactly fair.  Does it drop your credit score or do the credit agencies know it's tied to a pre-existing debt?

 

Is there anyway to fight/dispute this duplicate activity if it does drop your credit?

 

 

I just disputed one, and they JUST updated it to closed/transferred/sold.  Another updated theirs to just closed.  I have no idea if that is good or not but it's frustrating that they didn't do that from the start.  It makes you wonder how many people out there are being double dinged like they got 2 bad lines outstanding for the same debt.  Many of my negative lines are duplicates of the same debt.

 

 

Moderator
Posts: 13,317
Registered: ‎04-15-2011
0

Re: Do collection agencies drop your credit score?

Of course they drop it, they do a pretty good job of it too.



Starting Score: 504




July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
New Member
Posts: 9
Registered: ‎10-28-2012
0

Re: Do collection agencies drop your credit score?

but that's not fair!  :smileysad:

Frequent Contributor
Posts: 382
Registered: ‎06-26-2012
0

Re: Do collection agencies drop your credit score?


jessica-spears wrote:

but that's not fair!  :smileysad:


Sadly its the way the game works.

However your forgetting that quite a few OC don't report (utilitiy companies) and then there are quite a few CA that will delete once the account is paid off.

 

Granted there are also bottom feeders.

 

But I look at it this way - if I mess up either on purpose or by accident there is punishment for my actions and choices. That is no different than someone who commits a crime. If I went and car jacked some old lady and then got arressted and her car was returned to her literally 5 hours later should that mean that I only go to jail for 5 hours?

 

Not exactly the same situation but I've looked at my punishment for spending more than I could afford as my bad credit report. NOW to prove I'm transformed and a better 'citizen' of the credit world, I've worked hard to clean up my reports, be on time, not over-extend myself so that if there is a "whoops" in my life I don't have to pay via my credit report. That doesn't stop me from trying to get out on parole though and I have been working very hard to get stuff removed.

 

 

 



Current: Eq- 624 Ex - 631 (lender pulled) TU - 661 (lender pulled)
Goal 700+ across all three
Valued Contributor
Posts: 2,982
Registered: ‎02-09-2012
0

Re: Do collection agencies drop your credit score?


jessica-spears wrote:

but that's not fair!  :smileysad:


 

I must know why you believe it's not fair.  Would you mind?

5/2012: 560 credit scores across the board and $500 secured CC
12/2014: 750+ scores across the board and $80k in revolving credit

Get those baddies removed!!!
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.