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Accounts in collections = Bad credit

Accounts in collections = Bad credit

If you struggle to pay your bills on time, keep this strategy from BoostMyScore in mind …

Pay something – anything – on each of your account balances rather than letting them lapse into collections.  This will minimize the hit your credit scores will take.

Collection accounts are red flags for the consumer credit reporting agencies. These accounts can have a tremendously negative impact on your credit scores.

As soon as one of your accounts is sold to a collection agency, that collection account usually is reported as a separate account on your credit report. That’s something you want to avoid at all costs.

How big of a deal are collection accounts? Huge!

You will have to wait seven years from the original delinquency date (not the date the account went to collections) for that information to work its way off your credit reports.  While each year the collection is less impactful on your credit score, it is a long time to deal with the effects.

Most creditors will give you some grace period if you fall behind on payments. However, their patience eventually will run out and they will do everything in their power to collect what is owed them.

There are consequences to blowing off debts. They don’t just go away.  You’ll be paying the piper in more than one for the next seven years.

BoostMyScore works with customers every day who have collection accounts but the process to improve your credit scores is much easier and faster if you can avoid collections at all costs.  Depending upon how many and the type of collection accounts you have, you might need serious credit repair in addition to buying credit tradelines to improve your score.

About BoostMyScore

BoostMyScore has been helping consumers by using seasoned credit tradelines since 2007. Based in Colorado, BoostMyScore has assisted thousands of customers in improving their credit reports so they can be in a better position to hopefully quality for mortgages, and secure lines of credit and loans. Check out the Credit Tradelines Simulator that helps you select the credit tradelines that will best boost your score fast.  This tradeline supply company also gives people an opportunity to turn their favorable credit rating into a repeating and reliable income stream.

Call BoostMyScore at (800) 531-1472 for more information.

Bill Airy

About the Author:

Bill Airy is the CEO and Founder of BoostMyScore. For over 12 years he has helped American consumers get a second chance at a better financial life by helping them to improve their credit score. He regularly publishes helpful content on this Blog to educate others about Credit Scores and best practices when trying to improve them.

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BoostMyScore Team