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Author: Sergei Lemberg
How Long Do Collections Stay on Your Credit Report?
![Collections Stay on Credit Report]()
General Rule: Negative credit information generally remains on your credit report for seven years.
One of the concerns for consumers struggling to pay a debt is how it impacts their credit score. Your credit report can determine whether you can get approved to lease a car or purchase your first house.
Some individuals may have spent years building up a strong credit score. However, they may have lost their job and struggled to pay a specific debt. As a result, their credit score has dropped significantly.
The question many ask is how long will a bad debt stay on their credit report? How long will it take to start improving my score? This article will provide valuable information on how long collections stay on your credit report.
Credit Report Regulations
The Fair Credit Reporting Act (FCRA) regulates credit reports and the agencies that oversee them. This law regulates the following types of parties:
- Consumer reporting agencies. The FCRA regulates how consumer reporting agencies receive and distribute credit information.
- Collection Agencies/Creditors. The FCRA provides certain legal obligations for how collection agencies report information and handle consumer disputes.
- Third Parties. Individuals and companies that receive this information also have obligations under the FCRA. For instance, they must notify you if they take any adverse action based on your credit report.
How long does a collection account remain on your credit report? Seven years plus 180 days from when the account became past due. This rule is consistent for most forms of debt.
However, there are unique rules for medical debts. First, a collection agency cannot report medical debts until after 180 days. This ensures that an insurance company has enough time to make any payments. Secondly, credit reporting agencies must remove any medical collection debts if an insurance company paid them or they are in the process of doing so.
Note: If you file for bankruptcy, this can stay on your credit report for up to ten years.
Can I remove a collection account quicker by paying it off? No. Generally, a payment of a debt in collections will not shorten the time it remains on your credit report. In fact, in some states, a payment to the collection agency may extend the time the account remains on your credit report. However, you may be able to negotiate with the collection agency to get them to agree to update the account in your credit report.
How Does My Credit Report Impact Me?
A credit report lists all of your credit accounts. Collection accounts will also appear on your credit report when the original creditor sells off your past due debt. This usually happens after an account is past due for at least 90 days. When a debt collector reports a collection account to a credit bureau, it will lower your overall score.
The previous section highlighted how there were unique rules for how long a medical collection debt may remain on your credit report. In addition, medical debts often do not have as significant of an impact on your credit score as other types of past-due debt.
While a collection account can have a negative impact on your score, there are ways to improve it. One way is by consistently making on-time payments for all debts.
Can I Dispute a Debt on My Credit Report?
Yes. Just because a debt is on your credit report, does not mean it is correct. Under the FCRA, you have the right to dispute any of your accounts. This includes disputing whether a debt is yours, past due payments and accounts in collection.
If you want to dispute a debt you will have to do it individually with each credit bureau. Most credit bureaus have an online option for submitting a dispute. It’s also recommended that you dispute the debt with the company that reported it. You should do this as soon as you are aware of the erroneous report.
Conclusion
If you have a past-due debt that a collection agency now manages, it is likely listed on your credit report. While this debt may be on your credit report, you can take action moving forward to improve your score.
However, it’s good practice to check your credit report periodically to ensure everything is accurate. If it’s not, file a dispute with the credit reporting agency. If you need to take additional action, consider discussing your situation with a consumer rights attorney.
Additional Resources
About the author:
Sergei Lemberg is a consumer rights attorney, practicing since 2006, whose practice focuses on consumer law, class actions and personal injury litigation. He is known for a United States Supreme Court case (Facebook v. Duguid) defending consumers from autodialers under the Telephone Consumer Protection Act of 1991 to send unsolicited text messages. He is also the author of Defanging Debt Collectors, a book that teaches consumers how to battle debt collectors and win.
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