How long do collections stay on your credit report?

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Did you know your collections stick around on your credit report for 6 years? Yep, Equifax starts counting from your last payment while TransUnion starts from your first slip-up. Unpaid collections can hit your credit score hard, but paying off can soften the blow. They’ll still be there, but with a “paid” badge. Reach out via phone, text, or live chat if you have any questions. Not all trustees can be trusted.

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Collections On Credit Report Question

How long do collections stay on your credit report? I need to know how long unpaid debts can hurt my credit score, even after they’re sent to collections.

From: Anonymous Question
Location: Montreal, Quebec (QC)
Category: credit rebuilding

Collections On Credit Report Answer

Did you know that collections hang around on your credit report for a solid 6 years? Yep, whether you’re dealing with Equifax or TransUnion, that’s pretty much set in stone. The tick-tock of when this countdown kicks off is a bit different, though: Equifax kicks off from your last payment date, while TransUnion starts counting from when you first slipped up. Unpaid collections can hit your credit score hard—think a potential dip of 50 to 100 points right off the bat. As time ticks by, their sting gets a bit less painful. Pay off a collection, and it’ll proudly wear a “paid” badge on your report. It’ll still hang around for the full term, but hey, it’s a lot less of a buzzkill compared to those pesky unpaid ones. To better understand how unpaid collections can impact your financial situation, consider looking into credit rebuilding.

From: Insider Adam

Office of the Superintendent of Bankruptcy (OSB) Answer

In Canada, collections can stay on your credit report for up to six years from the date of default on the original debt, as outlined in the Credit Reporting Act (RSC 1970, c. B-3). Specifically, section 6 of the Act states that a creditor may report a default for a period not exceeding six years. This timeframe can negatively impact your credit score during that entire period.

From: OSB Helper

Related Questions to How Long Collections Stay On Credit Report

Here are the top 5 most frequently asked questions related to the duration of collections on a credit report, tailored for the Canadian context:

1. How long do collections stay on my credit report?

• Collections stay on your credit report for 6 years from the date of the first delinquency[1][3][5].

2. Can paying off a collection remove it from my credit report?

• Paying off a collection will not remove it from your credit report, but it will be marked as “paid”[1][3][5].

3. Do unpaid collections get removed from my credit report after a certain period?

• Unpaid collections will be removed from your credit report after 6 years, but the debt itself may still be pursued by lenders and collection agencies[1][3][5].

4. How does a collection affect my credit score?

• A collection can significantly lower your credit score, often by 50 to 100 points, depending on your credit history[5].

5. Can I have a collection removed from my credit report before the 6-year period?

• It is possible to have a collection removed through debt settlement if the collection agency agrees, but this is not guaranteed[1][3].

If you have a question about debt see our debt questions or ask your own debt related question.

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