Hi there, I am new to the board. Just have a few questions about credit files. First of all, if I have an item that went to collections and was then paid at the collection agency. My credit file shows the original account as 0$ balance, but still as a bad debt. The collection for it shows up as 0$ balance/ settlement made. Is this right? as it seems that I will then have 2 negative entries for the same debt. Is the original creditor supposed to change the status to account closed or something else? Secondly, how much information must be missing from an item on file to be considered for deletion? I have an old cell phone account that went to collections and was then paid. The original entry from the phone company states a balance of 0$ and contains the account number, but high credit/limit, payment amount and past due show as "not available". Is this worth contesting? Last but not least, I noticed I don't have any banking information reported on my credit file. Is there any benefit to adding it to the credit file if I have no credit through the bank and don't have much money in bank? I know this is a mouthful, but I just can't seem to find what i'm looking for online. Your help is greatly appreciated
The OC and the CA can both report, and both should be showing a 0 balance. The cell phone sounds like it is reporting correctly, also. CRA's don't report bank accounts, only loans and credit cards. Those things that are reporting correctly -- that doesn't mean it is impossible to make them go away. Tell us more about them and maybe we can help.
Clarification The original account was a department store cc through wells fargo. The account went to collections. I paid the CA for the debt. On my credit report it now shows the cc account as 0$ balance, but lists the status as bad debt. The CA lists it as "settled" with a 0$ balance. Obviously both the ca and the oc have the right to report, but shouldn't the OC list it as account closed rather than bad debt as I no longer have any debt with them? My understanding of this would be a double black mark on my credit as this one amount owing would show as a bad debt AND a collections account. One debt, two negative events. This is also the case with the phone item. Went to collections and was paid, the OC lists the item as a bad debt with a 0$ balance, and the corresponding collections account as "settled" with 0$ balance. I also noticed that the collections account lists it as "settlement made/monthly payments", but I paid the balance as a lump sum. Is it worth having this changed? Does it have any positive effect? the high credit/limit, payment amount and past due show as "not available", but i have no idea if it's a good idea to try and challenge that. Since there is no amount showing other than 0$ balance, if I challenge it and they can validate it, would I not just be adding more $ to the bad debt total? I'm sorry if this is easy info, I truly have no clue when it comes to credit. Thanks in advance
That is correct. It was charged off by the OC before being sold to the CA. As long as the original account shows as closed with zero balance, charged off, it is reporting correctly. The CA should report settled or paid or whatever the situation is, but it is still a collection account. So yes, one item can have two negative items on your report.
And both of those negative items will stay on the credit report for seven years beginning from the first date of delinquency.
Oc Understood, but should it say account closed or something to that effect? Are they allowed to leave the status as "bad debt, collections or unable to locate" with a 0$ balance? I know they can hit me twice for it, but I didn't think they could catogorize it as a bad debt if it is no longer owed, and the account it no longer active. If I do get them to change the status to closed, would it then reset the time it stays on my credit file?
