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BlueLineDefender

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Difference between delinquent account and debt that is in collections?
This may be a dumb question and I thought I would normally know the answer but this is throwing me for a loop.

I have 3 accounts that are under delinquent accounts that I have been ignoring for the past 4-5 years. I have 1 account that just recently went under debt collections.

I am not familiar with the terms and I am looking to purchase a home in the next few years... Wondering which one is worse (delinquent or debt in collections) and should I pay the accounts off that are delinquent or just let them ride the next 2 years and ignore them? I am able to pay them off if necessary but looking for the long term solution come 2-3 years when I am ready to purchase a house.

Thanks for your time and help!

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Top Contributor
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First,  if you can pay them off you should.  They are yours and you agreed to pay back the creditor.

As for your question, delinquent accounts are just that, bills that you are behind on.  The account is still open and the orignal creditor owns it.  Collections occur when the original creditor sells it off to a collection agency.  Collections are worse than delinquent accounts.  However, note that most delinquent accounts end up in collections in time.  You could have an old delinquent account that is hurting your credit a bit, but when it goes to collections it appear as a fresh entry and hurt your score even more.  

Don't know why you wouldn't pay them off if you have the money.  Strange.

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