How Does Debt Affect My Credit Score?

Convergent Outsourcing is not a specialist on credit reporting and we are unable to give advice on your credit report or credit score. However, we can refer you to some helpful resources that may be able to advise you on your credit reporting questions.

I have a debt with Convergent Outsourcing. How does that affect my credit score?

Again, Convergent Outsourcing and our agents are not credit specialists, so we may not be able to answer all of your questions. Typically, if you would like detailed information about your credit report, it is best to contact the credit bureau directly or speak with an expert in credit reporting. We do send updates to all applicable credit reporting agencies on a weekly basis. We also request that credit bureaus update a consumer’s credit report to reflect a paid debt. However, we do not control the timeline for credit bureau updates or the calculation they use to determine credit score.

For credit advice and answers, check out these resources from the three major credit bureaus:

• Experian
• TransUnion
• Equifax

Does having a debt in collections affect my credit score?

It may impact your credit score but do to the fact each credit bureau uses different criteria to create your credit score, there is no single answer to this question. You can learn more from the Consumer Financial Protection Bureau about a few types of unpaid debts and how those may impact your credit score:

• Utility bills in collections
• Rent payments or issues with a landlord
• Filing for bankruptcy

How long will negative marks remain on my credit report?

While there are some general timelines for credit reporting, the statute of limitations on debt can vary from state to state. Learn more about how long negative information remains on your credit report here. Please be advised that no one, including a debt collection agency, can remove negative information from your credit report if it’s accurate. Convergent Outsourcing has no control over your credit score and cannot remove information about a debt owed or collected from your credit report.

If you believe that the amount of an outstanding debt on your credit report is wrong, contact the debt collection agency directly and ask for verification of the debt. You may contact Convergent Outsourcing here or by calling 1-800-444-8485 Monday-Friday from 7am - 5pm PST. Please keep in mind disputing a debt should not extend the amount of time that the debt can be reported by a credit bureau.

If I pay off a debt, will it improve my credit score?

The Consumer Financial Protection Bureau says that the following items make up a typical credit score:

• Your bill-paying history
• Your current unpaid debt
• The number and type of loan accounts you have
• How long you have hard your loan accounts open
• How much of your available credit you are using
• New applications for credit
• Whether you have had a debt sent to collection, a foreclosure or a bankruptcy, and how long ago

That said, not all of these factors have a negative impact on your credit score. Learn more about what impacts your credit score here. Please contact a credit bureau directly to discuss how paying off a debt may impact your credit score or consult with a credit counseling professional.

Additional Resources

Learn more from our other FAQ articles:

• Smart Solutions for Dealing with Debt Collectors
• How Do Collection Agencies Work?
• 3 Reasons Not to Sue Debt Collectors