How will having a debt in collections affect my credit report?

UPDATED: Nov 14, 2012

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How will having a debt in collections affect my credit report?

My sister and I have a property collection on our credit reports. We owe about $2866.40. How long will this collection remain on our credit report once we pay it off? is there any interest that accumulates on this debt while we are making payments? The lady from the agency said once the collection is paid that it would remain on our credit reports for 7 1/2 years but it would show that it is paid, is this true or false? When would the collection be taken off fully from our reports?

Asked on November 14, 2012 under Bankruptcy Law, California


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Custom and practice with credit reporting agencies is that once a debt has been included in one's credit card report it will remain on it for seven (7) years or so but if you pay it off it will show paid off.

If the matter is paid in full, you can ask that the debt be taken care off and written off of your credit report. Whether the credit reporting agency does such remains to be seen.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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