Ask Your Finance Question. Finance Experts Answer You ASAP.

(Not a Finance Question?)

why does my credit score go down when a collection ...

Sent to Finance Experts July 5 2008 at 8:45 AM
   

why does my credit score go down when a collection debt is paid off

 

Optional Information:
Warner Robiins, Georgia

Already Tried:
howstuffworks.com

Customer (name blocked for privacy)
Status:  Closed   Value: $9
Answer
July 5 2008 at 10:46 AM (2 hours and 44 seconds later)
         
ACCEPTEDCheck Mark

Dear Customer (name blocked for privacy),

The most common cause of this is dependent on the way it was reported to the credit bureau.

Most oftne this is recorded not as a pay off, but as a write down (if it was less than what was owed) or

It was recorded as "closed not according to terms".

In order to know for sure you would need to order a free copy of your credit report to find out what the entries are.

 



YOUR PAYMENT AND BONUS IF ANY MAY BE TAX DEDUCTIBLE

Edward M. Johnson
Picture
Ed Johnson -- HR & Business Operations Consultant -- 100% Positive Feedback on 554 Finance Accepts
Central Michigan University, MSA Candidate; Global Compensation Operations Mngr; AA Degree Lib Arts
Think you can answer this question?
Login or Become an Expert

Related Answers

 

DISCLAIMER: You acknowledge that any information you may obtain from individuals you contact through use of the JustAnswer service comes from those individuals, not from JustAnswer, and that JustAnswer is not in any way responsible for any of the information these third parties may supply. The site and services are provided "as is" with no warranty and no representations are made regarding the qualification of an Expert. Responses and comments on JustAnswer are for general information and are not intended to substitute for informed professional advice (such as medical, legal, investment or accounting) and do not establish a professional-client relationship. JustAnswer is not intended or designed to address EMERGENCY QUESTIONS which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service.

JustAnswer > Financial Questions and Accounting Help