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

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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

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 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.


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