Collection accounts will almost always have a significant negative impact on a credit score. A collection account is a listing in a credit report that represents a consumer account that has been assigned to a company to collect on an unpaid debt obligation. If a consumer stops making the contractual payments on an account or debt, the lender or creditor may assign the account or sell the account to a collection agency. This action turns a credit account into a collection account. The … [Read more...]
Importance of Credit Scores Underscored with FTC Congressional Subcommittee Testimony
April 1, 2010 By Leave a Comment
Credit scores have become increasingly important in our lives, whether we like it or not and their importance and impact is almost certainly going to expand not diminish. The Federal Trade Commission just recently presented a report to the U.S. House Subcommittee on Financial Institutions and Consumer Credit of the Committee on Financial Services regarding actions by the FTC that cover the accuracy of consumers’ credit reports, preventing identity theft, and giving consumers a better … [Read more...]