Source: smallbiztrends.com | Re-Post QBScott 10/4/2017 –
Your credit score takes a hit if you fall behind on payments to a creditor, and again if an account is sent to the creditor’s collection department or sold to a third-party collector. You may be able to repair some damage to your scores by resolving a collections account on your credit reports.
Collections accounts generally stick to your credit reports for seven years from the point the account first went delinquent. You may want them off sooner than that; unpaid collections always hurt your scores. And while newer versions of FICO and VantageScore credit scores ignore paid collections, many lenders still use older formulas that count even paid collections against you.
How to Get a Negative Mark Off Your Credit Report
There are a few ways to get a collections account off your credit report, depending on your relationship with the creditor and the account status.
Author: Scott Meister, CPA
I help small businesses, accountants, bookkeepers, office managers, and business owners with their accounting needs. I’ve used QuickBooks since 2002 and train folks on how to use it efficiently. I create high-quality video training tutorials for QuickBooks and post them on QBScott.com.
Certifications include: Certified Public Accountant (CPA) | Certified Bookkeeper (CB) | Advanced Certified ProAdvisor for QuickBooks Desktop | Advanced Certified ProAdvisor for QuickBooks Online | Certified ProAdvisor for QuickBooks Enterprise | Certified ProAdvisor for QuickBooks Point Of Sale