Jump to content

Can DV Hurt Your Credit Score?


Phirefli
 Share

Recommended Posts

I pulled my CR from 3 different agencies yesterday. Seems I have quite a few old CA accounts, a few I don't even know what they are for. If I DV these accounts, and they are proven to be valid accounts that I owe, will it HURT my Credit Score? I did a search of the forums on this topic and really turned up nothing. (maybe was not using the correct key words? :) ).

So..main question, can debt validation hurt your credit score?

Thank in Advance!

Link to comment
Share on other sites

I pulled my CR from 3 different agencies yesterday. Seems I have quite a few old CA accounts, a few I don't even know what they are for. If I DV these accounts, and they are proven to be valid accounts that I owe, will it HURT my Credit Score? I did a search of the forums on this topic and really turned up nothing. (maybe was not using the correct key words? :) ).

So..main question, can debt validation hurt your credit score?

Thank in Advance!

The Answer is Yes and No.

Yes, because where the old CA does not want to DV with you, they will simply TRANSFER/SELL the account to another CA. The new CA Opens a CA Account with the CRAs, WITHOUT the old CA Deleting the Closed Account. Both accounts now appear on the CRAs with the new CA as the most recent DEROG. Then you have to Dispute the old CA closed account as a Duplicate, and hope that it is removed within 30 or 45 days. Meanwhile, both tradelines are hurting your scores.

Let's say, the old CA Opened in June 2003 (which may not matter too much in 2006) and the new CA Opens in Nov 2006. According to lenders, you have a Recently established CA, which hurts your scores a lot.

Note: SCORES LOOK AT THE MOST RECENT DATE IN ANY GIVEN CATEGORY OF DEROGS.

No, because if the CAs act in accordance to the law by properly Validating their accounts and stopped ALL Collection Activities, including account reporting activities, until the Validation is sent, if ever, your score would increase.

Note: High Score: The Negative Factors have a small impact.

Low Score: The Negative Factors have a very large impact.

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.