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Sorry you've hit a rough patch @Anonymous but Great Job taking it on. Better now than 5 years from now when it really can haunt you.
the score can always drop lower and it just depends on what else happens. If the banks have agreed to stop the delinquency then it will just age and once of two things will happen. They will either update it to a new delinquent state (let's say you paid enough to move you from 180 to 150, and they now report 150), or they'll stop altogether (preferred).
If they report a new delinquent status, even if it's a "lesser charge", it could (likely) push the score down further. What makes the score drop is how recent the bad mark is. When they stop reporting altogether then the bad marks start to age out month by month, lessening the impact to your score and it starts to go back up in increments. That climb will be slow so prepare yourself for that.
They could also report it as "paid as agreed" which would certainly give you a lift, but nowhere near where the score was before. It's a few points but the report is looking at the most recent 2 years so one month of "good" won't outweighs the 6 months of "bad".
You mentioned you started plans with the 2 in collections. If they don't report the account then you're in a good spot. If they do report the account expect another drop. These agencies vary so just because you're in a plan doesn't mean they won't report it. You're best way to confirm is to directly ask them about their specific process.
You can certainly dispute the items if you find inaccuracies but you agreeing to a payment plan is your admission that it's valid. They also report things differently to different agencies so it could be that, but if it's flat out inaccurate you certainly have a legal right to have it removed, and they'll likely just move to update it.
Keep in mind that if you have entered an arrangement, and then they get a request that you're disputing it they could turn on you quickly, change and/or cancel the terms of your arrangement so be cautious with your approach.
No matter what, stick to your plan to tackle these and you'll always come out ahead. Best of luck and hope this helps.
THANK YOU SOOO MUCH
That was so helpful. I never would have thought about how my disputing may cause trouble.
I appreciate you taking the time and laying it all out. I will prepare for a drop, but I will continue doing things to build my credit!
Glad it helped. I'm sure if someone has even more personal insight they'll share their experience as well. Go get it!
@Anonymous wrote:Hey there,I have seen such knowledgeable people on this forum, and I would love it if some of you could help me with this.I started defaulting on my debts in February due to COVID. After I got to 150 - 180 days late on payments for six cards, I reached out to the companies and was able to stop some of them from going to collections. They put me on payment plans and close my credit cards. My late payments still stand.My questions1. I paid my first payments at the end of July, how will this report on credit report?2. My score already dropped from the late payments. Will it continue to fall while I pay?3. Since this is so new, is this something I can still dispute for removal? (i saw some inconsistencies among the CB reports)Two of the cards made it to collections and I started payment plans immediately.My Questions1. Collections remark hasn't hit my credit reports yet. If my score is already super low (500) will it drop it signifcantly?2. If I am paying the collection agency, will they report to the CBs?
I filed BK 13 over 7 years ago, was 90 days late on mortgage and car payment to name but a few but my score never dropped below 500. It was in the low 500's but not lower than that.
Good afternoon! Great job on tackling this. I had an issue in 2017 and simply ignored things for two years. Still dealing with that (and really wishing that I faced the music back in 2017 instead of ignoring things).
Anyway, if I might ask on behalf of this forum, are you comfortable listing your two accounts that were closed/sent to collections? And the four that were closed but not sent to collections?
My fear for you is that you are going to have potentially six "Charge Offs" and this is going to really make your credit life very challenging. A Charge-Off is essentially the second worst thing (with a bankruptcy being the first worst thing). And they will sit on your credit report for seven+ years from the Date of First Delinquency that resulted directly in the charge-off. If you can get them to agree to accept a payment plan and reduce/remove the late payments status that might help you. Seems like this is not an option based on your "late payments still stand" comment.