No one wants a bill to be sent to collections, but life happens. The good news is that it isn’t the end of the world. Here’s what you need to know about collections and their impact on your credit score.
What Are Collections?
If you leave a bill unpaid long enough, it will get transferred to collections. This happens if a bill is seriously past due — usually at least 120 days. The creditor pawns off your debt to either an in-house collection department or a third-party collection agency.
When your bill is sent to collections, you might notice on your credit report that the balance changes to $0, and a new collection account will appear on your report. This is around the time you’ll start getting phone calls from debt collectors.
[Read: How to Negotiate With Debt Collectors]
What Type of Debt Goes to Collections?
Consumer debts of almost any kind can go into collections, including but not limited to:
— Credit card balances
— Student loans
— Auto loans (even after a vehicle has been repossessed)
— Personal loans
— Medical bills (of $500 or more)
— Utility bills (cellphone, cable or internet)
How Long Do Collections Stay on Your Credit Report?
According to Experian, paid and unpaid collections stay on your credit report for seven years, starting on the date of your first missed payment that led to the collections.
So, let’s say your first missed payment occurs on Jan. 1, 2026. Then that bill eventually gets moved to collections about 120 days later. That collection won’t drop off your credit report until Jan. 1, 2033, the original date of delinquency.
Other types of information — both negative and positive — have varying lifespans on your credit report:
[Read: Best Debt Consolidation Loans.]
How Collections Impact Your Credit
Remember, your payment history makes up a good portion of your credit score. If we’re looking at your FICO score, payment history accounts for 35%. If we’re looking at your VantageScore, it’s 40%.
When an unpaid balance gets sent to collections, your credit score could drop 100 points or more, depending on your score and credit history.
However, while it is true that collections will stay on your credit report for seven years, their impact on your credit score diminishes with time. If you work on your credit by making regular on-time payments on your other bills, you could see your credit score bounce back before the seven-year mark.
[Read: Secured Credit Cards]
How to Increase Your Credit Score After a Bill Goes to Collections
There are a few things you can do to try to pick your credit score back up. Just know there’s no quick fix, and it will take patience and good money habits.
— Reevaluate your budget. Nobody plans on a bill’s going to collections. When this happens, it’s usually because something else has occurred — either a job loss, irresponsible credit use or a financial emergency. It’s important to adjust your budget when something like this happens.
— Pay off the debt in collections. If you’re able, figure out what you can pay and if the debt collector is willing to work with you. Speak with them about paying off the debt and request a goodwill deletion to get the account removed from your credit report.
— Make on-time payments on other bills. If you can’t pay what’s in collections, focus on your other bills. Make regular payments on those, ensuring you’re not late again, to keep them in good standing.
— Become an authorized user. Ask a friend or family member you trust with excellent credit to add you as an authorized user to one of their credit cards. Remember, you don’t have to actually use the credit card to benefit from the positive payment history.
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How Long Do Collections Stay on Your Credit Report? originally appeared on usnews.com
Update 01/26/26: This story was previously published at an earlier date and has been updated with new information.
