Good afternoon! I am new to the forum and NACA process and I am hoping some seasoned program veterans can provide me with some insight. I have been given conflicting information around collections/charge off accounts in regards to qualification with NACA. After attending my first workshop I was told that any collection with an original delinquency date of more than 24 months did not have to be paid. However, today during my intake session I was told that the original date of delinquency is irrelevant, and that NACA goes by the date that the collection agency reports to the bureaus. There are a few old accounts on my credit report that have re-aged/re-surfaced, so I’m trying to figure out the best way to proceed. Any guidance would be appreciated.
The most recent date is what is used. That is usually the one on the credit report. The reason this gets confusing is because it is up to the collector to report to the credit bureau and then it may take a full cycle for the credit bureau to report it which may monthly or quarterly. So you can be late in August and not have it show up on your credit report until December.
Then there is the issue of a collection account/charge off. If you are late on your phone bill your phone company may or may not report that to the credit bureau. If you don’t pay your bill for say 6 months then they enlist a collection agency. So now in this example your orginal date of delinquency is 6 months but the collection date is now. Furthermore a charge off would be if collections are unsuccessful. So that would be maybe a year or 2 after collections started.
So again using that scenario above it wouldn’t matter that your original date of delinquency was a long time ago. You would have other more recent negative marks regarding the same bill. Make sense?
This is precisely why NACA pulls your credit. They don’t use your score to qualify you. They use your history to determine if you’ve made strides in the right direction over the last 12-24 months.