Why top real estate producers rely on Keith Brown

"Keith Brown is the Fairfax mortgage lender I've counted on for years. His pre-approvals stick, he uses local appraisers, and his loans close on time." Learn more »

Why homebuyers trust Keith Brown

"Keith Brown got us a great rate on the right type of loan. When there was an underwriting issue, he solved it so we closed on time with no surprises." Learn more »

Call Keith at 703-449-6821 or GET STARTED TODAY!

NMLS ID#195682

Intercoastal's Privacy Notice

Understanding Credit Scores

Collections

A collection can reduce a credit score by 30 to 100 points.

A collection is ANY debt that is sold to a service for the purpose of collecting on that debt. Once the Original Debtor “sells” the debt, they typically wash their hands of it and write the remaining balance as a loss. Once an item goes to collection, getting the problem resolved means you must deal with the collection agency.

Even if you pay a debt that has gone into collections, it can take up to three years — or longer — for a credit score to recover. The actual dollar amount of the collection has no bearing on the score. Outside of a Bankruptcy or Foreclosure, nothing can damage a good score as much as a simple collection.

Common Types of Collections:

Medical (most common)

Bounced Checks

Parking Fines/Motor Vehicle Fines

Utilities

Cell Phones

Municipal Fines (think overdue Library Book)