I Received a Letter Fron a Collection Agency for a Past Due Debt. Has This Account Already Been Reported on My Credit Report

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I Received a Letter Fron a Collection Agency for a Past Due Debt. Has This Account Already Been Reported on My Credit Report

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Q: I Received a Letter Fron a Collection Agency for a Past Due Debt. Has This Account Already Been Reported on My Credit or Will It Be After My 30 Days to Respond is Up? Also, is It Better to Pay the Creditor or Agency Directly?

A: If you are already more than 30 days delinquent in paying a debt such as a credit card bill, chances are the account has already been reported to the three main credit bureaus: TransUnion, Experian and Equifax. But you don’t have to do any guesswork about this. Nor do you have to take the collection agency at its word — regardless of whether or not it’s saying the report has been reported or hasn’t been reported. There’s a sure-fire way to know what’s on your credit report. It’s simply by taking advantage of your rights to get a free copy of your credit files from each of the “Big 3″ credit bureaus I previously mentioned. Just go online and get your credit reports and see for yourself. Look particularly closely at any records for “collections” or “public accounts.”

To get your free credit files, just go to: http://www.AnnualCreditReport.com.

Regarding your other question, I think it’s usually faster, easier and sometimes less financially costly to deal directly with creditors — as opposed to collection agencies. Those bill collectors often tack on additional fees, penalties, and other charges – expenses your creditors may be willing to waive.

Key Differences Between Equifax, Experian and TransUnion Credit Reports (askthemoneycoach.com)

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