Q.How Does a Collection Notice Affect Credit Scores?

A.A FICO score (credit rating) is based on several factors which help lenders determine the risk of extending credit to prospective borrowers. When unpaid amounts become delinquent, creditors often will pass the uncollected debt to a collection agency. Until the debt is paid or settled, the collection agency will send out collection notices which will reflect negatively in a credit report, thus resulting in a lowered credit score.

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