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🤷🏾‍♂️ What’s The Difference Between Collections Account’s and Charge Offs?

✅Charge Off - When a company can't collect a debt for a certain period of time -- usually six to nine months -- it must write it down or charge it off as noncollectable for accounting purposes.

✅Collection Account - When a company attempts to collect the debt or sells it to a collection agency. Debt collectors buy old bills for pennies on the dollar in the hopes that they can convince the debtor to pay.

🤔How does this impact your credit score?

✅Collection accounts and charge-offs have about the same effect on a credit score. Consumers with a high score -- above a 720 in the FICO system -- can expect up to 100 points in damage from either of these accounts

✅ Lower credit scores could take a smaller hit because other negative items leaving fewer points to take away.

If you look at credit karma and see “Derogatory Marks”, look at the marks and most like they are either Charge Offs or Collection Accounts. You want to get those removed from all 3 credit bureaus.

Get a Free Analysis of Your Credit Report and Details On How We Remove Derogatory Marks PERMANENTLY.

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