I have heard that if you don't agree to pay for something and you are charged anyway, it can't be reported to a credit agency and affect your credit. I am thinking of things like traffic citations. Also, what does a collection agency do when it's contacting someone about money owed, and if you were to have your credit affected, how much damage would actually get in your way in the future? I assume credit only matters when buying a car or a house- big ticket items. I have also heard the credit problem is erased after 7 years. Can someone clarify these issues for me please?|||Bad credit impairs you're ability to get:
...credit
...a good interest rate
...a job
As time goes by, your financial history (Both good and bad) has less of an impact on your FICO score until after seven years, it has no affect at all.
Yes, anyone you owe money (The local government, Wal-Mart, your formerly favorite Aunt) can sell that debt to a collection agency for them to collect.
Once the bad debt has been reported to the agencies, the damage is done. Paying the bill won't remove it from your credit history. So, you may as well negotiate the lowest possible amount to get the creditor off your back.
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