Joseph Asks… A $5 collection runied my credit – how can this happen?

Hard to believe but ANY sort of collection for ANY amount can drop your credit score! In this case I assume it was a mix up maybe with insurance co-pay or something of the like…. My best advice is to be vigilant about your credit because even a $5 collection can drop your perfect 800 credit score into the low 700’s. So make sure you are reviewing you credit regularly, keep your balances low, review the report for accuracy and fix any mistakes or errors and  DO NOT , I repeat  DO NOT ignore calls for payments of bills – even if you think you already paid them – take the time to work it out and get your documentation in order.  A little time spent in the beginning , however frustrating  at the time could save you thousands in interest over your life by qualifying for lower interest rates on borrowed money.

You can get a free credit report once a year from



Meet Cheryl!

About Cheryl

As a successful business owner and community leader, Cheryl Braunschweiger is known and respected for getting things done with a degree of skill and enthusiasm that bring out the best in those around her - colleagues, clients and friends. The name of her business, ALMC Mortgage, reflects Cheryl's philosophy and personality. She says it stands for All Loans Must Close –a reflection of her determination to do whatever it takes to serve her clients. Cheryl has been in the mortgage lending business for 20 years. Read More About Cheryl
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