Credit Score Basics > What is SCA on my credit report?

What is SCA on my credit report?

Wollit TeamUpdated 19th September 2024

If you see "SCA Credit Services" on your credit report, it means that a debt collection agency called SCA Collections is trying to collect a debt that you owe. Here’s what you can do about it.

What is SCA Collections?

SCA Collections is a company that specialises in collecting unpaid debts.

When you see SCA on your credit report, it usually means that you have an unpaid debt. This could be from credit cards, loans, or other bills that you haven’t paid. A collection happens when creditors decide they can no longer collect the debt themselves and they reach out to a company like SCA.

You might want to check your voicemail or mailbox. SCA may have contacted you through phone calls or letters to get you to pay the money you owe.

How does SCA affect my credit?

Having SCA Collections on your credit report doesn’t directly hurt your credit score. However, a collections account is seen as a bad mark on your credit report and can definitely raise some eyebrows from lenders. This can make it harder for you to get loans, mortgages, or even rent an apartment.

What should I do if I have SCA Collections on my credit file?

First of all, you need to remember that you have very clear rights when dealing with debt collectors like SCA:

Fair Debt Collection Practices Act (FDCPA): This law protects you from unfair practices by debt collectors. They cannot harass or threaten you to collect debts.
Right to Dispute: You can challenge any debt that SCA is trying to collect. If you do this, they must prove that the debt is yours before they can continue trying to collect it.

If you find SCA Collections on your credit report, here are some steps you can take:

Look for errors regarding the debt listed under SCA. Make sure all information is correct.
If you recognize the debt and want to resolve it, reach out to them directly to discuss payment options.
If there are mistakes in how the debt is reported, dispute it with the credit bureaus (the companies that keep track of credit reports).
If you're unsure about what to do next or feel overwhelmed, consider reaching out to a non-profit like Stepchange. They can help you sort out a payment plan or even a debt management plan (DMP) with your creditors.

The most important thing here is to not be passive. Lenders want to see that you take ownership of your debts and don’t run away from repaying what you owe.