What is a “bad debt collection” as opposed to a 120+ past due collection?
Question by tj F: What is a “bad debt collection” as opposed to a 120+ past due collection?
I have one collection on my credit report…….it shows as “bad debt/collection”. I also have two other accounts that are being handled by collectors……….however it states that they are 120+ days past due in collection. What exactly is the difference, do I still have time to reconcile the 120 past due collections without further damage to my report, or should I treat them as the “bad debt” which is already written off?????? Somehow, my score is still over 650…..
Best answer:
Answer by bdancer222
The difference is the wording the original creditor used. In either case you defaulted on your payment agreement, resulting in a derogatory item on your credit report.
The account may still be with the original creditor, but usually accounts are turned to collections at the 90 point. Some companies have in house collection departments. While other companies sell the debt to collection agencies.
Know better? Leave your own answer in the comments!
I work for a collection agency and 120 days past due is that if you don’t make a payment you can go to bad dept contact them to see if you can make payments on them until paid off. I would not let them go to collections it does not look good you always want to go up on a credit score not down. Allot of places now look for a credit score of 700 or higher.
Typically the “days past due” shows up on the tradelines section of your report. This is reported by the original creditor or inhouse collections and usually not a 3rd party collection agency. It used to reflect your payment history. 120 days past due is pretty bad. Best bet would be to call the original creditor and see if it could at least be changed to 30days.