Collections vs Negative Accounts

Anonymous — Tue, 03 May 2016 03:54:04 GMT

Are collections worse, score impact wise, than negative accounts ? I have a paid collection from Pinnacle(Verizon bill) showing up under my negative accounts, in comments it says collection account. Does that mean that entry is improperly categorized ? Or does that really not make a difference ?

Re: Collections vs Negative Accounts

RobertEG — Tue, 03 May 2016 08:05:14 GMT

A "negative account" is an overall descriptor that simply means the account is currently not in good-standing.

The term does not identify the level of delinquency, and thus it could vary from a minor 30-late up to a 180+ late or charge-off.

Charge-offs are as bad as it gets under reporting by the OC, and collections reported by debt collectors are additional and generally at the equiv score impact to a charge-off.

Your credit report can include a reference by the OC to their referral for collection, but an actual "collection" for scoring purposes is whent the debt collector actually reports their collection to the CRA. Debt collector reporting is stored in an entirely different segment of the consumer credit file.

Commerical credit reports sometimes blur that distinction.

Can you post a screen shot of the portion of the credit report at issue?

topic Collections vs Negative Accounts in Rebuilding Your Credit

Collections vs Negative Accounts

Re: Collections vs Negative Accounts