Seems like I just had a collections account taken off my credit report

[Grudge]

Cause my score just shot up 60 points.

[deckard]

what does that mean

[Grudge]

A "collection" is a negative, damaging record on your credit rating that is a consequence of missing a debt payment and not responding to an attempt to collect that debt.

[jawn galliano]

unaddressed lates will eventually go into collections, but lates are not themselves collections

[Grudge]

Are you replying to something I said? Seems like you are. I do state clearly what a collection is in the post above.

[jawn galliano]

what i'm saying is your definition of a collection account is inaccurate and conflates two different things. late payments are recorded as such beginning when the account is 30 days past due, and the credit impact increases in severity as the delinquency extends in 30 day increments up to 120 days. the account isn't recorded on your credit report as a collection until the loan is actually charged off (at which point the creditor usually sells the debt off to a third party)

[Grudge]

Anyway, due to this and some other good news, I'm getting pissed as a fart cunt tonight

[User]

i don't get it, why is imran not paying his bills

[Grudge]

On the contrary, I am very disciplined about paying my bills, and thus have a good credit score. However in 2017 I disputed a charge from an apartment when I moved out of it, and refused to pay it even after assigned that debt to a collections agency. So that was recorded on my rating. I thought these things drop off after 7 years but in my case it seems to have dropped off in 6.

[User]

i still don't get it

who authorises or manages when debts affect your "credit score"

[Noyka]

It happens almost immediately (within a month) and you can be paying just not enough. Super easy for your score to go down and up a few points just for normal credit card stuff month to month.

Closing accounts, opening accounts, using cards less, all things affect credit scores in america. Any debt you owe like Imran’s disputed charge affects it too. Its arbitrary but a part of American life.

[zim]

yeah when a debt goes to a collection agency your bank is notified and they'll drop your points

i had medical debt from going to the ER when i was 22 and it was sent to collections. it wrecked my credit score until i could pay it off years later.

also you'll lose points on a credit check which is hilariously stupid. when i was recently trying to apply for a mortgage i lost points on my credit score because they had to check my credit score

[Methuselah Honeysuckle]

And there's 3 companies who control it all. Each one has a different score for you.

[User]

that sounds fucking stupid

[Noyka]

It fucking is

Dunno how it is in germany, canada, or other places that use credit scores outside the us only country i 10000% lnow is dumber regarding credit scores is China.

It also opens up all kinds if predatory financial shit folks target (mostly) young people with good credit and groom them to take advantage financially. Its a messed up system that leads to fucked up things.

[jawn galliano]

i still don't get it

who authorises or manages when debts affect your "credit score"

credit reporting agencies have a free hand with respect to determining what your credit score is. the types of information that can be included in a credit report are regulated, as are many other aspects related to the practice (and these regulations apply to creditors as well, naturally), but the scoring itself is the divine right of private corporations

[Methuselah Honeysuckle]

that sounds fucking stupid

And it's only really been a thing since the late 50s!

[User]

i still don't get it

who authorises or manages when debts affect your "credit score"

credit reporting agencies have a free hand with respect to determining what your credit score is. the types of information that can be included in a credit report are regulated, as are many other aspects related to the practice (and these regulations apply to creditors as well, naturally), but the scoring itself is the divine right of private corporations

ah i see that indeed remains very fucked then