How Long Does a Collection Stay on Your Credit Report?

A collection account on your credit report signifies a debt an original creditor deemed uncollectible and sold to a third-party collection agency. This entry serves as a record of a defaulted financial obligation. Its presence on credit reports informs potential lenders about past payment difficulties, influencing future credit decisions.

The Standard Reporting Period

Collection accounts generally remain on credit reports for seven years. This standard duration is established under the Fair Credit Reporting Act (FCRA), a federal law promoting the accuracy, fairness, and privacy of consumer credit information. The three major credit bureaus—Experian, Equifax, and TransUnion—report this information.

This seven-year period applies to most collection accounts, regardless of whether they are paid or unpaid. It ensures uniformity in how negative debt information is presented across different credit reports. During this period, the collection account is visible to creditors and lenders when they review a consumer’s credit history.

When the Reporting Period Begins

The seven-year reporting period for a collection account typically begins from the “date of original delinquency” (DOFD). This date refers to the first missed payment that led to the account becoming delinquent and was never brought current. The DOFD is tied to the original account, not when the debt was sent to collections or when a collection agency first reported it.

This prevents the reporting period from restarting if a debt is sold or transferred to different collection agencies. If the DOFD were to reset with each transfer, accounts could remain on a credit report indefinitely, undermining the consumer protections provided by the FCRA. Therefore, all related collection entries for the same original debt will generally drop off the credit report seven years from that initial DOFD.

Early Removal Possibilities

While collection accounts typically remain on a credit report for seven years, early removal is possible. One way is disputing inaccuracies within the collection entry. Consumers have the right under the FCRA to dispute incorrect or incomplete information with the credit bureaus.

Upon receiving a dispute, the credit bureau must investigate the claim within 30 days by contacting the information provider. If the disputed information is inaccurate, unverifiable, or cannot be substantiated, it must be removed from the credit report. This process focuses on correcting errors to ensure the accuracy of the credit report, rather than simply removing a valid debt.

Paying a collection account does not automatically remove it; its status typically changes from “unpaid” to “paid collection.” While a paid status is often viewed more favorably by lenders, the collection entry itself usually remains on the credit report for the full seven years from the DOFD.

A “pay for delete” agreement is a negotiated outcome where a consumer offers to pay a debt in exchange for the collection agency agreeing to remove the entry from their credit report. This is not a guaranteed right, and debt collectors are not obligated to agree to such terms. Credit bureaus and the FCRA do not officially endorse this practice, as it can conflict with the principle of accurate reporting.

What Happens When a Collection is Removed

Once a collection account reaches the end of its reporting period, it is removed from the credit report. The negative entry will no longer appear, contributing to a healthier overall credit profile.

While the collection account itself is removed, other related negative information from the original creditor, such as the initial charge-off or late payments, might still remain. These original entries have their own reporting periods that may not align perfectly with the collection account’s removal date. However, the removal of the collection entry typically represents a step toward improving credit standing.