Reporting to Credit Bureaus

When and why?

We report to commercial credit bureaus only when an account becomes delinquent. Accounts having no payment within 30 days of the initial debt notice are considered delinquent for payment purposes. All deliquent accounts are reported as a "collection account" on the consumer credit report. The debt will remain as a collection account while on the credit bureau report; any subsequent payment activity is reported to the credit bureaus on a monthly basis.

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What are the effects?

The reason the creditor report your account to a credit bureau is to get you to pay a past-due debt. A credit bureau judgement can affect you in a number of ways. The best thing to do is to contact us before the lawsuit and make payment arrangements of the debt.

Credit score

A credit bureau judgement can lower your credit score substantially. Judgements will do the most damage during the early years.

Time Frame

A judgement will stay on your credit bureau report for seven years -- starting from the date it was paid, not from the date of filling. It never helps your situation to have a judgement, but if you pay in full, creditors may view your situtation in a more favorable light.

Approval / Interest rate

A judgement can keep you from being approved for other credit products such as mortgages, automobile loans, credit cards or even overdraft protection. If you are approved for any of these products, you will receive a higher rate of interest, which will cost you more money over the life of the loan in terms of the finance charges you will be required to pay. Some lenders may even charge you different loan fee because you are considered to be a risk; this is how they offset the risk of doing business with you.

Monthly Mortgage Payment

A history of judgements can increase your monthly payment substantially. If you are aplying for a mortgage loan, a substantial increase in the interest rate, which results in higher monthly installments, could prevent you from being able to afford the property. Lower scores can raise the interest rate by two or even three points.

Job offers

Poor credit can stop you from getting a job offer. A potential employer may overlook accounts that have been paid 30 or 60 days past due, but when they see a judgement, they are less likely to be as forgiving when it comes to offering you a job. If you are disputing the item, there is a possibility that you may never get the chance to present your side of the story.

International business

You will be listed among the high risk customers.