Collection account (negative credit information)
Also known as: Collections on credit report · Derogatory mark · Charge-off · Negative information
A debt a creditor has sent to collections or charged off, reported to the credit bureaus as negative information that can stay on a credit report for about seven years.
Legal basis
FCRA, 15 U.S.C. §1681c (obsolete information)
When a debt goes unpaid long enough, the original creditor may charge it off, sell it or place it with a collection agency, and either one may report it to Equifax, Experian and TransUnion. The result is a derogatory mark that anyone pulling the report will see, and it weighs on scores and approvals.
The FCRA sets the clock. Accounts placed for collection or charged off cannot be reported once more than seven years old, and that period starts 180 days after the delinquency began — so paying or selling the debt does not restart it. Consumers can dispute inaccurate items, and the bureau must generally complete its reinvestigation within 30 days.
Medical debt is a live example of how contested this is: the CFPB's 2025 rule removing medical bills from credit reports was vacated by a federal court in July 2025 before it took effect. And a collection account is not the same as risk — much delinquency is never reported, and many people with no negative marks are risky simply because they have never had credit.
Frequently asked questions
How long do collections stay on a credit report?
About seven and a half years from the original missed payment: the FCRA allows seven years starting 180 days after the delinquency began. Paying the debt does not reset or extend that period.
Does paying a collection remove it from my credit report?
Not automatically. The account is updated to show it was paid, but it can remain until the seven-year period ends. Some newer scoring models ignore paid collections, and inaccurate entries can be disputed with the bureau.
How do I dispute a collection account?
File a dispute with each bureau reporting it and with the collector, explaining what is wrong and attaching evidence. The bureau generally has 30 days to investigate, extendable to 45 if you send more information during that period.