How Will a Debt Collector's Actions Influence your Credit Score?

Many people don’t understand how their credit scores are calculated and what goes into them. In this blog post, we’ll break down exactly how debt collectors’ actions can influence your credit score. We’ll also provide some tips on how to keep your credit score in good standing. So, whether you’re currently dealing with debt collectors or just want to be prepared for the future, read on!

If a creditor is unsuccessful in contacting you about outstanding debt, they may hire a debt collector. The collector will try to reach you by phone or in person. If they cannot get through to you, they can only report back to the creditor—not the credit rating agency—that you have defaulted on payments. So, can debt collectors affect your credit score? No, not directly.

Always communicate with your creditors if you cannot make a payment. If they cannot reach you, they can report it as a major credit infringement against you, which could negatively affect your credit score for years to come. Creditors may also take legal action against you, and if there is a court judgment against you it will most likely have an severe impact on your credit score as well.

Keep in mind that debt collectors are subject to strict rules and may not harass you by calling or coming to your home repeatedly, or by implying that they will take your stuff if you don’t pay. They can’t either threaten to file a default judgement against you with a credit agency.

If you are struggling with a low credit score and bad credit, the credit repair experts at Clear Credit Solutions can help. We have years of experience in removing negative listings from people’s files, which will improve their credit score and give them a good chance of obtaining finance. Contact us today to find out more about our credit repair service and how we can help you achieve your financial goals.