Impact on your credit

When your debt is sent to collections you will also see a new record appear on your credit report. This collection record will remain on your credit report for 7 years from the last 180-day late payment on the original account, whether or not you pay the debt back. In the event that your original account is also on your credit report, both account records will remain on your report for 7 years. This is also true if a new record appears when your debt is sold to a new collection agency. Review the information a collection agency posts on your credit report very carefully. It is fairly common for collectors to report incorrect facts to help with negotiations.