For Better or Worse: The Power of Credit ReportingCredit Reports Are Not
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That’ll Cost You
A high credit score opens doors, and results in lower premiums and interest rates. On the other hand, a low credit score often has the opposite effect. A single collection account on a credit report can cause a good credit score to drop 50 or even 100 points.
Most of us realize that a negative credit report can cost a small fortune in interest on a car loan. But here's something you may not know: It can also increase insurance premiums. Take car insurance, for instance. Insurance carriers base their premiums at least partially on credit scores. That's because statistics indicate that drivers with lower credit scores file more claims. According to The Zebra's 2021 "The State of Auto Insurance" report, “Drivers with poor credit pay 122% ($1,566) more for car insurance than drivers who have exceptional credit.” In addition, poor credit can adversely affect a consumer’s ability to rent an apartment in two ways:
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Credit Report Errors According to a 2021 Consumer Reports study, 34% of consumers have reported at least one mistake in their credit reports. The most common errors related to debt were:
The study also stated that debt erroneously reported as in collections, or reported as late payment, could lower a consumer’s credit score by as much as 100 points. For instructions on how to fix credit report errors, click here. |
About Credit Bureaus
A credit report from these three credit bureaus is often the determining factor when it comes to landing a job (or not) or receiving a security clearance (or not). And it’s probably the single biggest factor in deciding whether a consumer qualifies for a home mortgage or vehicle loan.
Every year, credit bureaus collectively make an estimated 36 billion updates to consumer files based on data from 18,000 sources.
Use Responsibly
The power that comes with credit reporting necessitates a concomitant responsibility. Reputable collection agencies, like CSC, do not take this responsibility lightly.
Whenever possible, we will work with consumers to keep overdue accounts from being reported to the credit bureaus. To this end, CSC has developed a unique program whereby, if an account qualifies for reporting, but the consumer makes and keeps a payment arrangement, we will not report the account. This is just one of the ways we at CSC have made it our mission to help your consumers pay their debts and get back on the road to a positive credit rating. |
Medical Debt Is Different In 2017, credit bureaus changed the way they report and evaluate medical debt. They now wait six months before including medical debt on a patient's credit report. This grace period is designed to make sure consumers have enough time to resolve any delays in payment or disputes with insurers. In addition, credit bureaus are now required to remove a medical collection account from a credit report if the amount has been paid -- or is in the process of being paid -- by insurance. Source: Kaiser Health News |
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Credit Service Company, Inc.
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2150 Lelaray St.
Colorado Springs, CO 80909 P.O. Box 1120
Colorado Springs, CO 80901 |
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Credit Service Company, Inc. PO Box 2247 Colorado Springs, CO 80901
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