Author Topic: What will this do to my credit score?  (Read 984 times)

cannotWAIT

  • Stubble
  • **
  • Posts: 242
What will this do to my credit score?
« on: December 26, 2021, 11:00:16 PM »
My credit score is 815. I am an idiot and somehow let two medical bills, $42 and about $1000, go to collections. I believe the higher one is a billing error and will talk to them about it tomorrow. What will this do to my credit score? Is there anything I can do about it? How long does it take to recover? I’ve never screwed up like this before so I have no idea what it means. Ironically this is kind of the result of always paying my bills on time—they get paid on time because they’re all on autopay and i just never think about paying bills manually. Not a good excuse but nevertheless true!

Virtus3

  • Stubble
  • **
  • Posts: 218
  • Location: NC
Re: What will this do to my credit score?
« Reply #1 on: December 27, 2021, 07:32:13 AM »
If you call and handle it right away it may not affect your credit at all. I've had the same thing happen with autopay and having something slip through the cracks but handled it as soon as collections reached out to me and I don't have any delinquent payments listed on my credit report.

cool7hand

  • Handlebar Stache
  • *****
  • Posts: 1319
Re: What will this do to my credit score?
« Reply #2 on: December 27, 2021, 09:27:07 AM »
If you call and handle it right away it may not affect your credit at all. I've had the same thing happen with autopay and having something slip through the cracks but handled it as soon as collections reached out to me and I don't have any delinquent payments listed on my credit report.
+1

Sibley

  • Walrus Stache
  • *******
  • Posts: 7487
  • Location: Northwest Indiana
Re: What will this do to my credit score?
« Reply #3 on: December 27, 2021, 10:36:49 AM »
Worst case, it'll drop your score, then your score will recover over whatever period of time. Not the end of the world.

lhamo

  • Magnum Stache
  • ******
  • Posts: 3135
  • Location: Seattle
Re: What will this do to my credit score?
« Reply #4 on: December 27, 2021, 03:54:26 PM »
What do you need the credit score for? 

Anything over 800 is excellent and over 740 is very good.

https://www.equifax.com/personal/education/credit/score/what-is-a-good-credit-score/

As long as your utilization is relatively low a one time ding won't drop you a ton.

We had some unusual expenses last month and went over the credit limit on our main card.  No penalty on that one, but our score dropped about 50 points.  Not a big deal because we don't need our credit score for anything (insurance rates can no longer be tied to credit scores in our state; aren't planning to borrow for anything else).

cannotWAIT

  • Stubble
  • **
  • Posts: 242
Re: What will this do to my credit score?
« Reply #5 on: December 27, 2021, 04:02:19 PM »
I don't actually need it for anything at the moment. I may need to add on to my house in a year or two to accommodate my aging mother but that's the only foreseeable need. I was concerned because in the ever-increasing commodification of humans the credit score is used to assign one's value in the marketplace. :)

I paid both of these off today. I'm just not going to worry about it. The larger one had not actually gone to collections yet despite the language on the statement, and maybe the smaller one hasn't either. Thanks for your help!

abovethewaves

  • 5 O'Clock Shadow
  • *
  • Posts: 17
Re: What will this do to my credit score?
« Reply #6 on: December 27, 2021, 08:21:34 PM »
This happened to me not too long ago and I did a bunch of research to figure out how to handle it. How long has it been since you got the first notice from the collection agency? If it's very recent, then as stated above, it may not go on your credit report at all if you pay it before they report it to the credit bureaus. I think you get 30 days once they notify you they own the debt to respond. If it's too late for that you may be able to do a pay for delete letter where you agree to pay the debt provided that the collection agency agrees in writing to have the debt removed from your credit report once it's paid. Has the account already showed up on your credit report?

In my case, it was already on my credit report for about 2 months before I caught it. Thankfully, the collection agency for my debt was actually known for being easy to work with. They have a policy of deleting the credit line as soon as it's paid, so I lucked out. My score went from around 830 to 790's once the collection hit for a bill that was about $350. It was back up to 830 within 2 weeks of paying the debt. YMMV of course depending on the collection agency.

EDIT - Sorry, didn't see your last post that you already paid them. Fingers crossed it doesn't end up on your report!
« Last Edit: December 27, 2021, 08:24:05 PM by abovethewaves »

DaTrill

  • Bristles
  • ***
  • Posts: 297
Re: What will this do to my credit score?
« Reply #7 on: December 28, 2021, 02:11:50 PM »
Has happened to me.  Didn't know where the amount was from, ignored it, dropped score about 30 points, not worth the time to reverse.