MENU CLOSE
MENU CLOSE
888-807-8289
MENU CLOSE

Collection Removals

We remove collections and raise your credit scores

What is a collection?

A collection is a result of a debt owed that has not been paid on time. Once this debt becomes significantly delinquent, such as a medical bill or credit card, the original company that extended you the credit will write your debt off as a loss and sell it to a collection agency. The bill collector who works for the collection agency will contacted you and attempt to recover the money that is owed.

Creditors have different policies but for the most part most credit card companies will send your account to collection once you have surpassed the 180 day make of non payment. The original creditor or collection agency will now report your debt as a collection to all three major credit bureaus and it will show on your credit report as a collection. The lenders report this information without even notifying you but you will see the collection reported on your Trans Union, Experian and Equifax credit report.

Click here book a free consultation and remove collections in 30-34 days for only $299.99

How may points does my Score drop for Collections?

Once a collection is reported on your credit report, your credit score will drop by a significant amount. The severity in which a collection drops your credit score is largely based on how high your credit score is when the original creditor or collection agency reports the debt. The higher your credit score is the more points it will drop.

Therefore, the amount of detriment  to your score could be affected by the amount of the the collection and how much you owe. For example, if the original debt is less than $100, the impact of the collections may not be as significant and drop your score at all. There are different types of collections from medial to credit cards and they impact you score in different ways. The scoring models below will show you the difference of particular collections,

Click here to book a free consultation and remove collections from your credit report for only $299.99.

Unpaid Collections

Score from 640-700 

Score from 700-780

1. Medical Collection Unpaid
2. Unpaid Medical Collections
3. Unpaid Collection
4. Plus Collections Unpaid
5. Plus Paid Collections

No Change 
Drop 30-45 points
Drop 10-25 points
Plus Collections Unpaid
Drop 5 points

No change
Drop 10-25 points
Drop 10-25 points
Drop 10-25 points
Drop 5-10 points

What is a Good Credit Score for Lenders?

POOR 
300-550 

SUB PRIME 
550-620

ACCEPTABLE CREDIT
620-680

GOOD CREDIT
680-740 

EXCELLENT CREDIT
740-850

Creditors charge-off accounts for their benefit, not the consumers.

Credit scores will determine you getting mortgages, loans , credit cards and help or help your chances when seeking employment. Some employers will take your credit score into consideration when applying for a position in a company. Collections can be devastating to your credit score as it will be combined with late payments reporting on your credit.

If you have a debt of only $200 or more it will drop your score by 50 points as well as $100,000 would drop it the same 50 points. It is important to have collections removed from your credit report immediately or it’ll effect you from obtaining credit.

How does Medical Debt impact your credit?

Medical debt is an unexpected health situation for consumers and many are not  prepared for these expenses. Over half of all the debt that appears on a credit report is related to medical expenses, and consumers will find that their credit score is effected because of it. There have been changes in the way credit bureaus report and evaluate medical debt which have reduced some of the impact to your score. Over 43 million Americans have medical debt in collections that’s which effects their credit according to a 2014 report by the Federal Consumer Financial Protection Bureau updated data.

The average amount of medical debt for consumers in collections was $579 compared with $1,000 for  a non medical debt. Over 15 million consumers had a medical debt on their credit report. The newer FICO and Vantage Score models differentiate between medical and non medical debt.  Consumers with medical debt in collections receive a smaller penalty than those with non-medical collections.  Under FICO model 9 this change can make a difference in people’s credit scores.  One or more medical collections would show a decrease of approximately 25 points opposed to the over previous model. Unfortunately, the majority of lenders still use the older models and will not upgrade to the newest scoring models which means Medical Collections can be a problem.

Click here to book a free consultation and remove collections from your credit report for only $299.99.

Why are Credit scores so important?

The consumer protection measures being implemented by credit bureaus as part of a “National Consumer Assistance Plan” NCAP include 2 points for medical debts. Debts such as unpaid a traffic or parking tickets will show up on your credit report. An unpaid debt that’s been turned over to a collection agency or sold to a debt collector  includes information about the originate creditor when reporting that debt to credit bureaus.

What are the differences between Charge Offs & Collections?

FICO has changed how it deals with unpaid Medical bills that are settled. Past due or delinquent medical bills that have not gone to collections which include medical debt.no longer count as unpaid bills once they have been paid as long as you are dealing with the hospital or doctor’s office. Prior to the change, if you had a bill that was 60 days past due  the hospital would  would send it to a collector but they now wait 6 months to send it to third party billing agency. Even if the debt is sent to a bill collector most providers will pull the debt if it’s paid within the first 24 months and the collection will still show but as paid.

Click here to book a free consultation and remove collections from your credit report for only $299.99.

.