A debt collection company is a company or agency that collects payments on outstanding debts. Debt collectors work for creditors, such as banks, credit card companies, and retailers. They may also be buyers who purchase debt at a fraction of its face value with the intent of recovering the entire debt owed.
If you have defaulted on your payments or any outstanding debt, you may have received regular phone calls and letters from a collection agency trying to recover the debt.
If you are in such a situation, understanding how debt collectors work will help you know how to deal with them. We will discuss all you need to know about debt collection and the debt assistance available to you.
When you stop making payments, your account is sent to a debt collector, and this information shows up on your credit report as collections. Your credit score takes a hit, and you start receiving calls and letters from debt collectors. But what can you do when a debt collector contacts you?
Reputable debt collectors do not use scare tactics or intimidation to retrieve money from the past-due account. Instead, they should name the original creditor, including how much you owe them. They should also inform you that you have 30 days to dispute the debt in writing if the collection account is erroneous.
If a debt collector contacts you, you have the right to request verification of the debt. If they can’t prove that you are the defaulter, you can ask them to cease contacting you and to remove the collection from your credit report.
Debt collectors work on a commission basis, meaning they only get paid if they successfully collect payments, or they may also charge a fee for their services.
If you cannot agree with your debtor, you can use an attorney to advise you on the best action to take. Credible credit repair companies also help negotiate with debtors on your behalf and also provide financial advice regarding your debt.
Debt collectors typically contact debtors by phone, email, or letter to request payment. If you do not respond to a debt collector’s request for payment, the debt collector may take legal action, such as filing a lawsuit to recover the debt. If the judgement is passed against you, a debt collection agency may seize your possession or wages to pay for the debt.
Ignoring debt collectors is also detrimental because your debt will keep growing as interest will keep piling up.
When you ignore debt collectors, you may miss validating if the debt is legitimate or not. This may harm your credit score even though the debt is erroneous.
Whether it’s legitimate or not, getting in touch with the debt collector provides more insight into the debt. If it turns out that there was an error in the collection letter, it helps prevent any late fees or penalties from being charged against your account.
N/B: If you receive a court summons regarding your debt, it is wise not to ignore it as it may be legitimate. Unscrupulous debt collectors may fabricate one. However, you should look up the court’s contact information online to confirm the accuracy of the notice. To avoid manipulation from unscrupulous debt collectors, do not use the contact information on the document you receive.
If a debt collector has contacted you, you have certain rights under the Fair Debt Collection Practices Act. For example, a debt collector may not contact you at an unreasonable time or place or use abusive or threatening language.
Debt collectors can not pretend to work for a government or consumer reporting agency. They are also prohibited from publicly shaming you for your debt or collecting a debt you don’t owe.
A debt collector is forbidden from calling you before 8:00 a.m or after 9:00 p.m. If you request in writing for them to stop calling you regarding your debt, they are mandated to honor your wish and stop contacting you.
If you think a debt collector has violated the Fair Debt Collection Practices Act (FDCPA), you can file a complaint with the FCPB.
You can remove collections from your report by disputing inaccurate information such as:
People do many things when they find themselves in financial trouble, such as late payments, but they don’t always think through the consequences of their actions. Before you pay off collections, you should ask yourself these questions:
You are required to pay your debts on time to have a good credit score. However, if you are late on payments, debt collectors will try to collect the money owed to them. You will receive lots of calls and letters as they try to collect a debt. If you feel they are harassing you, you can write and ask them to stop contacting you or file a complaint. Here at Ascent Network, we help you manage your debts and remove collections from your report to maintain a good credit score.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States, and it is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
When you fail to honor your debt obligation, your creditor sells your debt to collectors, and the negative information is reported to the three major credit bureaus (Experian, Transunion, and Equifax).
Collections accounts stick to your credit report for seven years from when your account became delinquent, making you look uncreditworthy to potential creditors. Here are some steps to increasing your credit score by removing collections.
To get collections off your credit report fast, you must be proactive and check your report thoroughly. Get your free credit report by visiting AnnualCreditReport.com or from the three major credit bureaus. Compare the details against your records. If you don’t have your payment records, log into the account to check your payment history.
To check for negative accounts, go to the credit history and accounts section to find information on missed or late payments. Check the account status to see if it’s paid, charged off, or closed. Check the account number and the date the debt became delinquent. Once armed with these details, you can take the following steps:
Dispute a collection account if:
A delinquent account falls off your credit report seven years from the date it went delinquent. However, you may still find the account is not closed. File a dispute with the credit bureau, so they can remove the collection report from your account.
If a collection report is incorrect, gather all the documentation to show the collection appears on your report erroneously. Send a dispute with your correct contact information, indicate the mistake with account numbers, and explain how the information is incorrect. The bureau will have 30 days to correct the errors.
The best dispute reason for removing collections is by asking the collection agency to validate the debt. Most often, documents get lost as debts are shuffled from one collection agency to another in an attempt to recover their money. In such scenarios, original documents get lost, and inaccurate details are passed on to debt collection agencies.
You should use this loophole to ask them to verify if the debt belongs to you. They will have to remove collections from your credit report if they can’t validate the debt.
When the above steps don’t work, you need to ensure you don’t cause much damage to your credit score. You need to continue paying your debt as you wait for validation from the credit bureau or until you pay your debt fully. You can arrange a payment plan with your creditor and stick to it.
Once a collection account is reported to the three major credit bureaus, the negative information will remain for seven years. Unfortunately, despite having paid your debt fully, some lenders will consider this information when offering you loans. This affects the interest rate because they consider you uncreditworthy and offer you loans with higher interest rates.
Consider writing a goodwill letter, sending it to the collector or creditor, and politely asking them for a goodwill deletion by pointing out that you have fully paid the debt. If the creditor or collection agency agrees, ask for a written agreement that you can present to credit bureaus just in case the agency fails to update them.
Credit score improvement depends on several factors, such as the scoring model used and other items found on your credit report. In fact, paying off your debt can hurt your score at first before you see major improvement. However, you may see some positive changes a month or two after updating the collection account.
Credit repair companies like Ascent Network are experienced in credit score improvement. They know how to negotiate with creditors to remove collections from your report to improve your credit score.
Credit repair companies get much better results than you would alone. They offer additional information that helps you improve your score even further. Before you choose a credit repair company, ensure they are reputable.
It is possible to remove collections from your credit report to improve your credit score only if you become proactive, check your credit report, analyze the information, and take the necessary steps. You can also use a reputable credit repair company with the experience to improve your score.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
Credit repair is very important. If you have bad credit and cannot get approved for any kind of loan, you need to get your credit in order. The good news is that you can repair it yourself.
Yes, with the right information and guidance, you can improve your credit score.
Below are steps you should take:
Your report has all your credit information, and you can get a copy from the three major credit bureaus: Experian, Equifax, and TransUnion. Check your reports from all three bureaus because some creditors may not report to all of them. You can also get a free copy at AnnualCreditReport.com.
It is good to check your report monthly to see if there is a new entry you did not authorize. Or if there is an account that is time-barred.
If you find a new account in your credit report that you aren’t aware of, report it to your creditor. Call each of the three major bureaus and ask them to correct any inaccurate information in your report that may affect your score, ability to get loans, or other forms of financing.
Your credit report also shows if an account is past its statute of limitations (time-barred), so you can dispute and have it removed.
Paying your credit card bills on time helps you improve your credit score and helps you qualify for low-interest rates. You also save money from late payment fees that can be as high as $35.
Pay your cable and utility bills using your credit card to build a good payment history that helps improve your credit score.
Minimizing hard inquiries is an essential step in repairing your score. When you apply for new credit, it shows up on your report as a hard inquiry. A hard inquiry causes a drop in your score.
If you have multiple loans or credit card bills, it is easy to forget to make some payments. Debt consolidation is an easy way to combine payments into one new loan at a lower interest rate. Consolidating your debts helps improve your credit score if you make timely payments.
Given that you may be busy, it is easy for payment to skip your mind. Setting up reminders helps you make on-time payments that are crucial in improving your credit score and avoiding late fees. If you do not set payment reminders, you may end up paying late fees.
If you are behind on payments, call in advance so they can give you an extension before charging late fees or increasing interest rates on loans.
Credit repair may take three to six months, depending on the severity of your delinquencies and bad habits, such as late payments or accounts in collections or bankruptcy records that affect your credit score.
It may take up to 18 months to get your credit score from poor to fair.
So, can you make your credit perfect? Yes! You can do it on your own or work with a fast credit repair company like the Ascent Network to get the help you need. Here are some tips for repairing your credit:
Yes, using a credit repair company is an easy way to repair your credit. They have experts and know how to handle all the problems that may arise while repairing your bad credit ratings.
These companies provide credit repair services to help set up payment plans with creditors so that you can pay off any debts on your report. They also negotiate and make arrangements for how you will be making payments on overdue debts.
Credit repair companies are experts in credit laws such as The Fair Credit Reporting Act (FCRA), The Fair Debt Collections Practices Act (FDCPA), and The Fair Credit Billing Act (FCBA). They use their understanding of the law to help leverage them in your favor. Look at credit repair reviews from service providers to make sure they are legit and deliver as promised.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call at 1-877-871-2400. Ascent Network helps consumers all over the United States. It is available locally in Huntington Beach, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms, CA.
If you are planning to get married, it is crucial to know your spouse’s debt can affect your credit. Marriage has a big impact on credit scores, both positively and negatively.
If you’re planning to get married soon, here’s what you need to know about how marriage affects your credit and what steps to take if your future spouse has poor credit.
If your partner has a bad credit score, you need to understand the causes and develop a strategy to improve the credit. It is crucial that you don’t sign a joint agreement when your partner has bad credit because their bad credit can affect your future plans.
Marriage doesn’t directly affect your credit score, but it can impact how lenders view your ability to repay loans due to shared finances and joint accounts. If you and your spouse apply for a joint account, such as a mortgage or car loan, the lender will likely check both of your credit files. A good credit score helps you qualify for better rates or terms, while a poor score may increase the interest rate on your loan.
If you’re married and your spouse has debt, it will not affect your credit score. The only exception is if you co-signed for the account or loan with them (for example, if you co-signed for your spouse’s car loan). In that case, the lender reports both names on their credit report and all payments made by both parties.
Likewise, if you’re dating someone but not married, then any financial obligations they have will not affect your credit score. However, if you sign a joint lease or open a joint bank account together while dating and then break up, any late payments made on those accounts could hurt your individual credit scores.
It’s common for a married couple to have a joint bank account. A joint account allows you and your spouse to pool your income and spending on one card. If you use the card responsibly and pay it off each month, having a joint card helps increase the average age of your accounts and lower the average number of accounts on which you have balances.
Joint accounts make sense in many situations, but they can also cause problems if you don’t understand how they affect your credit scores. Here are some things you should know about how joint accounts affect your credit scores.
A joint account appears on both spouses’ credit reports. Before opening a joint account, make sure that both of you are comfortable with the idea of sharing such an important financial relationship.
FICO and VantageScore rely on your payment history and credit utilization to calculate your credit scores. If you manage a joint account responsibly, both of your scores will go up, but if you mismanage your account, both your credit scores will drop.
How can you effectively manage joint accounts to improve your credit score?
Your credit is not impacted if your spouse has bad credit. However, if you take a loan on a joint account, your credit will either be impacted positively or negatively. If your partner has bad credit, take steps to help them improve their credit scores to get back on track. Good credit helps both of you to get low-interest rates that will help you make financial progress.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call at 1-877-871-2400. Ascent Network helps consumers all over the United States. It is available locally in Huntington Beach, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms, CA.
Can late payments hurt your credit score? Late payments can have a significant impact on your credit rating, but they don’t necessarily have to. You can take steps to minimize the damage missing a payment. Here’s what you need to know about late payments and how they affect your credit.
A late payment occurs when you fail to make payments by the due date, usually reflected as 30 days after the billing cycle ends. If you pay your bill before the 30 days, your bill won’t affect credit score, but you may have to pay a late fee. Your payment history accounts for 35% of your credit score, and a missed payment will affect credit score.
A late payment can have a negative impact on your credit score and your finances. Here are some examples of how late payments can affect you:
If you are late paying your bills, the company may charge you a fee. If you have a credit card, the company might charge interest on the delayed payment.
Your payment history accounts for 35% of your credit scores, and one missed payment can affect your score negatively. Late payments are one of the biggest factors affecting your credit score. They are taken very seriously by lenders, landlords, and other businesses that use credit reports as part of their decision-making process.
If you have a higher credit score, your score will be greatly impacted than someone with a lower credit score. Your score could be lowered by 100 points.
If you pay late often, companies will raise interest rates on your loan or credit card if they feel it will prevent further delinquencies. Late payment could lead to increased costs for the loan or credit card, making it more difficult for you to pay off debt quickly.
Some lenders may lower the available credit on their cards if you make too many late payments, even if the bill is paid in full each month. This means that they may lower your limit from $5,000 available for purchases, for example, to $3,000 available at any given time.
Sometimes a late payment can be inevitable, you may have changed your address, had some emergencies that needed you to redirect your money, or you plainly forgot. The most important thing is to avoid missing payments altogether and so, here are some tips for preventing late payments:
When your payment is 30 days late, you will be charged a late payment fee and sometimes a higher APR. However, your credit won’t be affected negatively if paid before the 30 days are over. If this is your first time, call your creditor and ask if they can waive the fee.
If you are more than 30 days late, make the payment before the 60 days are over because the earlier you make a payment, the less the damage to your credit. Write a goodwill letter to your creditor asking them to remove a negative remark in exchange for full payment.
If you are late for more than 90 days, the late payment account will appear on your credit report, and it will stay there for seven years from the day it was reported, but the effects become less impactful with time.
If your late payment was due to a missing bill or some other error on the creditor’s part, then a credit repair company like The Ascent network can help. They have access to many methods for correcting errors on your credit report and improving your credit score, including sending in an amendment to correct the mistake. However, if you made a late payment because you were unable to pay off the balance in full, then a credit repair company cannot help you.
Late payments can sometimes be inevitable. You may have a medical emergency, lose your job, or even forget due to busy work schedules. However, you should remember to make payment within the first 30 days. Your account is not sold off to collections agencies and eventually gets reported to the three major credit bureaus.
A more positive outlook toward a more financially secure future starts today. Give the Ascent Network a call today at 1-877-871-2400. Ascent Network helps consumers all over the United States and is available locally in Huntington Beach, CA, Coachella Valley, Palm Springs, Cathedral City, Rancho Mirage, Palm Desert, Desert Hot Springs, Indian Wells, La Quinta, Indio, and Thousand Palms.
A debt collection company is a company or agency that collects payments on outstanding debts. Debt collectors work for creditors, such as banks, credit card companies, and retailers. They may also be buyers who purchase debt at a fraction of its face value with the intent of recovering the entire debt owed. If you have … Continued
Read MoreWhen you fail to honor your debt obligation, your creditor sells your debt to collectors, and the negative information is reported to the three major credit bureaus (Experian, Transunion, and Equifax). Collections accounts stick to your credit report for seven years from when your account became delinquent, making you look uncreditworthy to potential creditors. Here … Continued
Read MoreCredit repair is very important. If you have bad credit and cannot get approved for any kind of loan, you need to get your credit in order. The good news is that you can repair it yourself. Can I Fix My Credit Myself? Yes, with the right information and guidance, you can improve your credit … Continued
Read MoreIf you are planning to get married, it is crucial to know your spouse’s debt can affect your credit. Marriage has a big impact on credit scores, both positively and negatively. If you’re planning to get married soon, here’s what you need to know about how marriage affects your credit and what steps to take … Continued
Read MoreCan late payments hurt your credit score? Late payments can have a significant impact on your credit rating, but they don’t necessarily have to. You can take steps to minimize the damage missing a payment. Here’s what you need to know about late payments and how they affect your credit. What is a Late Payment? … Continued
Read MoreWE COMMUNICATE WITH ALL THREE CREDIT BUREAUS FOR YOU:
