How much debt collection inquiry affects my credit score?
When a debt is sold to a debt collection company, it is considered that the loan borrower has been making loan repayments in a timely manner. If the main loan provider witness that the person is paying off the loan at the fixed time, then, it is unnecessary to contact a collection agency. Nevertheless, if the loan provider is facing problems to get back loans from you, he/she sells your debt to a collection agency and frees itself from the burden of loan collection. The transfer of debt to a collection company put an adverse effect on the on the defaulter. The credit score of loan borrowers can be affected in a negative manner as a collection company is engaged to collect the loan from him/her. The credit rating of such loan borrowers is reduced.