A collection account is a delinquent debt that goes to a collection agency. Every account that has gone to a collection agency is a negative mark on your credit. This is another reason it is so important to pay your debts on time and to catch up quickly if you have gone behind. Having a couple of collection accounts on your credit is considered somewhat normal because there can be disputes between individuals and creditors. However, having an excess amount can dramatically affect your credit score. It is also important to note that not all collection accounts are equal. A paid collection account has less negative effect on your score than an unpaid collection account. The reasoning behind that should be obvious. It shows that even though you had a problem paying that account at some time, you finally did take responsibility for the obligation and paid it.

If you have collection accounts, the customized program you receive as part of the American Home Buyer Service will contain a specific plan for resolving these accounts that fits your budget and your goal of owning a home.

If you need help with your collection accounts, call us at 866-554-9906 or click here.