Does bad debt always appear on credit report?
Problem:
I am 24 years old and live in Georgia with my parents. I have few questions regarding my credit. I took out 4 educational loans few years back. My creditors have assigned all the accounts to a collection agency as I didn’t make any payments on them for several months. However, the delinquent accounts have not appeared on my credit report. My uncle has co-signed for the loans. Does it mean that the negative items have shown up on my uncle’s credit report? How can I pay off the bills and get rid of the problem? I am confused about the entire situation. I don’t want my uncle to suffer due to my negligence. Please advice.
Solution:
I am happy to know that you have realized your mistake and want to rectify it. You are only 24 years old and your whole life is ahead. This is the time to strengthen your career. So, the sooner you solve your credit problems, the better.
The delinquent accounts may not appear on your credit report due to various reasons. Perhaps your creditors have not reported about them to the 3 credit bureaus (Equifax, Experian and Trans Union). If you have taken out private student loans from your college, then your creditors are less likely to report about them to the credit bureaus. Another possible reason is, your credit details have gotten into another consumer’s report by mistake.
This may also be a case of mistaken identity. This is a regular incidence with the individuals sharing the same name and address. This may also be due to dome error in the Social security number. Credit bureaus issue credit reports of billions of consumers. As such, it often becomes quite difficult for them to scan through each and every detail of the consumers’ credit reports. Hence, they often include wrong information on the credit reports.
Call your uncle to know whether or not the delinquent accounts have appeared on his credit report. If they have shown up on his report, then apologize to him first. He may be upset about the entire thing. Tell him that you are working on a plan to pay off the debts.
Go through your credit report to get the names and contact details of the collection agency. Once you get that information, contact the collectors and tell that you want to pay off the entire outstanding balance. Keep on updating your uncle about all the developments. I think you can take advantage of debt consolidation Georgia and resolve your debt problems. You can take out a debt consolidation Georgia loan and pay off the educational loans at ease.
Finally, if the delinquent account has not appeared on your uncle’s credit report, then request your original creditor to withdraw the account from the collection agency and work out a payment plan with them. Always remain current on other loans. Thereby your credit report and score will always remain in a good condition.
Processing your request, Please wait....
