If you’re a hopeful St. Louis car-buyer looking to get a car loan but you’ve recently had a debt collection, you may be wondering, “how many points does a collection drop your credit score?” Since you want a strong credit score to get a better car loan interest rate, we understand why you’d want to know if you have a collection on your credit report, how many points will it cost you? Read on below to learn more.
Unfortunately, a debt collection is one of the most detrimental events that can occur on your credit report. First, let’s cover the events that lead to a collection, so Herculaneum drivers can hopefully avoid it:
So, how many points does a collection drop your credit score? If you have a high score of 700, you can expect the first collection to drop it over 100 points. If it’s lower than 700, expect even more.
What causes the impact of a collection on a credit score to be so high? When there’s a collection on your credit report, how many points are dropped is dependent on:
We are proud to serve our Florissant-area customers with helpful credit guidance and great auto finance plans. If you have more questions related to building your credit score, securing a car loan, or other auto finance inquiries, contact us today!