17h • General discussion
Let’s Learn Today
What is a collection?
A collection happens when you stop paying a debt and the original creditor gives up trying to collect — so they either assign or sell the debt to a third-party collection agency.
Now here’s what most people don’t understand:
• The original account may still report.
• The collection agency may ALSO report.
• That means one debt can damage your score twice.
Collections hurt because they show failure to repay and they signal risk to lenders.
Important things you should check on a collection:
- Is the balance accurate?
- Is the date of first delinquency correct?
- Is it beyond the 7-year reporting period?
- Is it reporting on all 3 bureaus consistently?
Not every collection is valid.
Not every collection is reporting correctly.
This week is about understanding what’s actually on your report — not panicking about it.
Knowledge first. Strategy second.
1
0 comments
Let’s Learn Today
powered by
skool.com/30-day-credit-rehab-4716
Credit Rehab is a 30day guided recovery experience focused on breaking bad credit habits, rebuilding discipline & how credit really works
Coach Eva
Suggested communities
Powered by