Debt Collector $8.97
When a woman received a letter from a debt collecting agency for an $8.97 debt, she began to wonder if it would hurt her credit score. She explains, “Today I received a letter in the mail from a collection agency stating that a DVD I rented from Family Video (probably 5 years ago) has gone to collections. The total that I owe is $8.97. Am I going to get a bad credit score for an unpaid bill of $8.97?! Help would be greatly appreciated — Jillian”
Even a small $8.97 debt can do damage to your credit rating — if left unpaid, small debts such as unpaid library fines can turn into something much worse in the future. When it comes to collection accounts, the amount of the collection has no direct impact on your credit score. It’s the fact that the account made it to collection status that matters. This means a collection of $8.97 is just as damaging as a collection of $3,000 when it shows up on your credit report.
If you receive a debt collection letter in the mail, it’s best to address it right away because you only have 30 days to dispute the claim.