Rebuilding Your Credit

[Okiechic]

I sent a goodwill letter a few weeks ago and received the below uodate on my Scorewatch today. The status went from 120+ days past due to "bad debt; placed for collections".  The description now also states charge off.  Are the changes going to hurt my credit score?  I am hoping to get a mortgage in the next few weeks!

Account opened: 7/2005 Description: Charge off account Account transferred or sold Charge Amount in H/C column is credit limit   Previously reported Newly reported Balance: $0   Past due: $0 $0 Status: At least 120 days or more than four payments past due Bad Debt; Placed for collection; Last activity: 8/1/2010 8/1/2010 Description: Account transferred or sold Charge Amount in H/C column is credit limit Charge off account Account transferred or sold Charge Amount in H/C column is credit limit Contact: CAP1/DAMARK INTERNATIONAL INC, PO Box 5253, Carol Stream, IL, 60197   •   (800) 695-6950

[Okiechic]

Anybody?  

[Shogun]

Seems like it should be the same as before.  I don't see any change that should hurt you.

[guiness56]

Actually, the new reporting is better.  The old one had the status as 120 days past due which would not be good.  The new status shows as a collection.

[surbee]

hey there - wondering if you saw an impact to your score - positive or negative? i just had the same thing happen in the past week actually with the exact same status changes so i'd love to get some insight.

thanks! 

[kitty9779]

---

guiness56 wrote:

Actually, the new reporting is better.  The old one had the status as 120 days past due which would not be good.  The new status shows as a collection.

---

does that mean that a collection is preferable to a 90 or 120 day past due?

[guiness56]

No, I'm saying that a collection can't report as current status of 120 past due, it has to report as a collection.  It can report as worst delinquency was 120 past due.

[Okiechic]

I've seen no impact to my score since the change was made.