Debt repayment lowering credit score??!?

I have set up payment plans with a collection ageny and credit card company on some written off accounts. After making timely payments for over a year, I checked my credit and discovered that they are reporting my accounts as %26quot;120 days late%26quot; and %26quot;chargeoff%26quot; EVERY month that I make a payment. Are they supposed to be reporting it as negative every month still, even though I am making payments each month? My score is getting lower as a result each time I make a payment...help!

Debt repayment lowering credit score??!?

Of course it%26#039;s a negative account and they can report it as late. It will not be considered on time until you have caught up completely. You should never have set up payments with the collection agency!! Your negative acccounts can stay on your credit report for 7 years!!! You should have been more concerned about making the monthly payments before you defaulted. You might have a chance of getting the credit card company of changing the chargeoff if they are someone like Capital One that gives people a 2nd chance sometimes.

You need to think about rebuilding good credit so you have a head start when you%26#039;re done paying off the old accounts. I suggest you try getting a secured card.

Debt repayment lowering credit score??!?

I am sorry to hear that this is happening to you since you are trying to do the right thing...we all make mistakes in our finances...it could be that going thru this collection agency is one...

If you have something in writing from this collection agency, maybe you can dispute the entry on your credit report if it does not match wha tis actually happening on your accounts

It is worth a try...the disupte filing is free...

MY question is, is this agency actually paying the debt that they said they would. It might be better to try to negotiate directly with the company and cut out the middle man.

I seriously doubt that your score is getting LOWER because of your paying your debt. I have to believe that it is something else...No way would you be penalized for paying...my guess is that the penalty is because of the account being reported as 120 days late each month...once you get current that report will stop

Best of luck to you and I am very sorry that this is happening

remember this is not the end of the world and despite what it seems like at this second, you are doing the right thing by paying your debts