Some newer versions of credit scoring calculations don’t consider debt collections under $100 and don’t ding you as much for medical debt collections. Even so, these blemishes can follow you around for years, hurting your ability to get approved for new credit cards, loans, and other credit-based services. Thankfully, debt collections won’t be on your credit report forever. The Fair Credit Reporting Act requires that debt collections fall off your credit report after seven years. In the past, court judgments against you for debt collection appeared on your credit report as long as an individual state’s statute of limitations. However, the major credit bureaus no longer include these civil judgments in your report.
When Does the Reporting Clock Start?
The credit reporting time period for debt collections starts from the date of the delinquency that caused the collection. With collections resulting from a charge-off, it starts the date the account was charged off (not on the date of the first 30-day late payment preceding the charge-off). So, if you were first late in February 2013 and the account was charged off in July 2013, the account should fall off after July 2020. Some versions of your credit report may include phrasing that indicates when the collection will fall off your credit report, such as, “Scheduled to report until 06/2020.”
When Will a Paid Collection Fall Off Your Credit Report?
While it’s better to pay off a debt collection, unfortunately, payment doesn’t immediately remove the account from your credit report unless you negotiate beforehand to have the account removed upon payment. Unless you negotiate a pay-for-delete agreement, the collection will stay on your credit report for the entire credit reporting time limit, and the balance due will be updated to $0. Still, a paid collection can improve your credit score and will look better when you apply for new credit.
6 Misconceptions About When Collections Will Fall Off
There are some common misconceptions about what affects the date a collection will fall off your credit report. Below is a list of other dates that do not affect the date a collections account rolls off your credit report.
Review Your Credit Report for Answers
If you’re wondering when a specific collection account will fall off your credit report, pull a copy to review. You can get a free one from AnnualCreditReport.com once a year. Review the history for the original account to check the date of delinquency and add seven years to that date. That’s about when you can expect the collection account to drop off.
