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Do collection agencies drop your credit score?

New Member

Do collection agencies drop your credit score?

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.

 

 

4 REPLIES
Moderator Emeritus

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!

June 2017 update: All scores over 820, just pure gardening now.
New Member

Re: Do collection agencies drop your credit score?

but that's not fair!  Smiley Sad

Frequent Contributor

Re: Do collection agencies drop your credit score?


jessica-spears wrote:

but that's not fair!  Smiley Sad


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

Re: Do collection agencies drop your credit score?


jessica-spears wrote:

but that's not fair!  Smiley Sad


 

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

5/2012: 560 credit scores across the board
12/2014 750+
3/2017 780+
5/2017 800+