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How are charged off amounts recorded on my credit report?
I have a charged-off account on my credit report for $2,761. A court judgment was made; now both accounts are reporting - one for $3,113 and $2,761 the $2761 is with interest which to $3113.can They report both accounts like this?
If I understand your question correctly, you have a single account appearing on your credit report twice, once as a judgment and once as a delinquent revolving account.
If this is a correct description, it is normal that the account is appearing on your credit report twice, because the two different listings represent different facts about your account status. The listing appearing as a "derogatory item" simply states that you have missed payments on the account, thereby causing the account to go into default. The judgment on the other hand shows that the creditor filed a lawsuit against you and won its case. Because the credit reporting agencies pull the information about the judgment from the public record files of your county court, the balance appearing on the judgment listing is static and possibly inaccurate. On the other hand, the listing showing up in the derogatory items section should be regularly updated by the creditor, which would explain why the balance appearing on one of the listings is $400 more than the other.
Interest continues to accrue on judgments, but the court itself does not keep track of the interest, so the balance of the judgment appearing on your report should be the same as the day the judgment was entered. The creditor, however, does track the interest accrual, and updates the account periodically, so the listing under you "derogatory items" will likely continue to grow until the judgment is paid off.
I understand your concern in thinking that both listings appearing on your credit report could make it appear that you owe twice as much money as you actually owe. To my understanding, credit scoring algorithms take this problem into account when calculating credit scores, so these two listings should not be damaging your score much more than is you had a judgment alone. The fact that a judgment has been entered against you is almost certainly damaging your credit score more than the delinquent account would be on its own. The only way effective way to resolve this problem is to contact the creditor and pay off the judgment. Once the judgment is paid, it should appear on your credit report as "satisfied," and the derogatory item listing should show a $0 balance. While your credit score will probably not improve immediately, satisfying this outstanding judgment is the first step to improving you credit history.
To learn more about credit, credit reports, and credit scoring, I encourage you to visit the Bills.com Credit Solutions and Resources page.
I hope this information helps you Find. Learn & Save.
Best,
Bill
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Did you know?
Mortgages, credit cards, student loans, personal loans, and auto loans are common types of debts. According to the NY Federal Reserve total household debt as of Q1 2024 was $17.69 trillion. Housing debt totaled $12.82 trillion and non-housing debt was $4.88 trillion.
According to data gathered by Urban.org from a sample of credit reports, about 26% of people in the US have some kind of debt in collections. The median debt in collections is $1,739. Student loans and auto loans are common types of debt. Of people holding student debt, approximately 10% had student loans in collections. The national Auto/Retail debt delinquency rate was 4%.
Collection and delinquency rates vary by state. For example, in North Dakota, 18% have student loan debt. Of those holding student loan debt, 5% are in default. Auto/retail loan delinquency rate is 3%.
To maintain an excellent credit score it is vital to make timely payments. However, there are many circumstances that lead to late payments or debt in collections. The good news is that there are a lot of ways to deal with debt including debt consolidation and debt relief solutions.
