Do Collections Go on My Credit Report

Collection agency accounts are extremely harmful to your credit score, according to the MyFICO scoring website, because they are part of your payment history, which makes up 35 percent of the score total. Collection agencies report to the TransUnion, Equifax and Experian credit bureaus, so lenders and others who review your credit reports know you are being pursed by debt collectors.

Reporting

Some bills, like credit cards and loans, are almost always reported to the credit bureaus, whether you are in good standing or are delinquent. You get a new entry if the lender charges off your account as a bad debt and sells it to a professional debt collector, according to the Privacy Rights Clearinghouse. Other financial obligations, like medical bills or unpaid library fines, never show up unless you refuse to pay and the creditor turns the account over to a collection agency.

Effect

Collection agency accounts are a serious blemish because they show you are ignoring a bill. Their overall impact depends on whether they are the only negative entry on your credit reports or whether they are just one part of an overall negative history that includes late payments, charge-offs and court judgments for unpaid debt. Collections are visible in your records for seven years, according to the Federal Trade Commission (FTC), although they do not hurt you as badly after a few years if your other data is all positive.

Removal

You can sometimes get a collection account off your credit reports before the seven-year period expires by offering a settlement that includes removal as a condition of repayment, according to Bankrate.com. Debt collectors pay very little for accounts, so many accept less than you actually owe as a lump sum settlement. State that you want a written agreement, including the amount and a commitment to erase the account from your credit reports as soon as you make the payment. Check your credit reports with free copies from annualcreditreport.com, which lets you review them once per year at no cost. Complain to the collector if the account still shows up on any reports.

Warning

Scavenger debt collectors buy bills that are past state statutes of limitations, which means they cannot force you to pay or sue you. The NOLO.com legal website explains that they often try to intimidate or trick you into paying with falsehoods, including threats to add the bill to your credit reports. Demand immediate removal and file disputes with TransUnion, Equifax and Experian through their websites if a collection agency ever puts a debt on your credit reports when the statute of limitations is expired.