In a Nutshell
While an account in collection can have a significant negative impact on your credit, it won’t stay on your credit reports forever. Accounts in collection generally remain on your credit reports for seven years, plus 180 days from when the account first became past due.If you have an unpaid bill, like a medical or credit card bill, a collection account may appear on your credit reports.
This can happen when the original company sells your past-due debt to a collection agency. This is typically known as a “charge-off” and may occur after a period of nonpayment, often between 120 to 180 days.
In turn, collections typically can stay on your credit reports for seven years, plus 180 days from when the account became past due.
We’ll review how collections may affect your credit, how different types of debt are treated and how to dispute any inaccuracies you find.
- How long do collections stay on your credit report, and when do they fall off?
- How credit scores factor in collection accounts
- Will paying a collection account affect when it’s removed from your credit report?
- How to dispute a collection on your credit report
- FAQs about collections on your credit report
How long do collections stay on your credit report, and when do they fall off?
Accounts in collection generally remain on your credit reports for seven years, plus 180 days from the date the account first became past due.
Once a creditor sells your debt to a collection agency, the collection can be reported as a separate account on your credit reports. If the information is accurate, it can stay on your reports for this seven-year period.
Here is an example of the timeline:
- Your account becomes late on Jan. 1, 2025
- After 180 days of nonpayment, your creditor charges it off on June 30, 2025.
The original delinquency date is Jan. 1, 2025, so the account should be removed from your credit reports by June 30, 2032.
Do different types of collection debts get treated differently?
In most cases, different types of debts in collection are treated similarly and will remain on your credit reports for up to seven years. However, medical collections may be reported differently.
- Medical debts are not reported until after a yearlong waiting period, which allows people more time to address debt before being reported on credit reports as well as account for insurance payments.
- Paid medical collection debt and medical debt less than $500 aren’t reported by the credit reporting agencies — and aren’t considered to calculate your credit scores.
- Credit bureaus must remove medical collection accounts that have been paid by insurance.
- VantageScore® 3.0 and VantageScore 4.0 exclude medical collection debt entirely from score calculations, while FICO® Score 9 ignores paid collections and gives unpaid medical collections a smaller impact than other collections.
How credit scores factor in collection accounts
You have many different credit scores, and the impact of a collection account can vary depending on the credit scoring model used. Scoring models like FICO and VantageScore have different versions, and each may weigh information differently.
Here’s a look at how some common scoring models treat collection accounts:
| Scoring model | How it factors in collection accounts |
|---|---|
| VantageScore 3.0 | Ignores all paid collections of any type. Medical collections (paid and unpaid) are excluded from score calculations. |
| VantageScore 4.0 | Ignores all paid collections of any type. Medical collections (paid and unpaid) are excluded from score calculations. |
| FICO® Score 8 | Ignores collections with an original amount less than $100. Does not give special treatment to medical collections. |
| FICO® Score 9 | Ignores paid collections and gives unpaid medical collections a smaller impact than unpaid non-medical collections. |
Will paying a collection account affect when it’s removed from your credit report?
Making payments on or paying off a collection account will generally not change the period it remains on your credit reports. The collection remains on your credit reports, though the status may be updated to paid.
However, in some states, making a partial payment can restart the statute of limitations for the debt. The statute of limitations is the time period during which a collection agency can legally sue you for an unpaid debt, and it varies by state.
If you pay off a collection account, the collection agency may update the account status to “paid” on your credit reports. Before making a payment, you can ask the collection agency if it will agree to update the account status or request its removal from your reports. It is a good practice to get any agreement in writing before you make a payment.
How to dispute a collection on your credit report
If you believe a collection account on your credit reports in inaccurate, you have the right to dispute an error on your credit report with the credit bureaus. You can typically file a dispute online through each credit bureau’s website.
Credit bureaus typically have 30 days after receiving your dispute to investigate and verify information. They’ll then have to report those results back to you within five days of completing the investigation.
You can also dispute the inaccurate information with the company that provided it.
Next steps
An account in collections can be concerning, but it will not remain on your credit reports permanently. It will generally be removed after about seven years. In the meantime, there are actionable steps you can take.
- Monitor your credit regularly. Checking your credit reports can help you track the status of a collection account and watch for any errors. Credit Karma provides free access to your VantageScore 3.0 credit scores and credit reports from Equifax and TransUnion. You can also get a free credit report from each of the three major bureaus at AnnualCreditReport.com.
- Know your rights. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using abusive or deceptive practices If you believe you are being treated unfairly, it is important to understand your legal rights.
- Dispute any inaccuracies: If a collector contacts you, request a written validation notice and compare it with your records. If anything looks wrong, dispute it with the credit bureaus.
FAQs about collections on your credit report
Accounts in collection generally remain on your credit reports for seven years, plus 180 days from whenever the account first became past due.
Generally, accurate negative information about collections — including paid collection accounts — won’t be removed from your credit report before the seven-year limit unless it is inaccurate. However, you may ask a collection agency for a goodwill deletion if extenuating circumstances led to the late payment. However, this is entirely at the creditor or collector’s discretion and not guaranteed.
To rebuild credit after a collection, make sure to pay bills on time, check and dispute any errors on your credit report, avoid multiple applications in a short amount of time and keep your credit utilization low.
Deciding whether to pay an older collection depends on your financial situation and goals. Some scoring models, like VantageScore 3.0 and FICO® Score 9, ignore paid collection accounts, so paying it off could help scores calculated with those models. Additionally, paying the debt can prevent the collection agency from taking legal action, provided the debt is still within your state’s statute of limitations. However, paying the debt will not remove it from your credit reports any sooner than the standard seven-year period.