Collection account

A collection is often a second entry for the same debt: the original creditor's account shows a charge-off or transfer, and the collector's account shows what's owed. Scores treat unpaid collections harshly, but versions differ after payment. FICO 8 ignores collections with an original balance under $100 yet still counts paid ones. FICO 9, the FICO 10 suite and VantageScore 3.0 and 4.0 ignore paid collections.

The reporting clock comes from the original delinquency, not the date a collector opened its account: 7 years starting 180 days after you first fell behind. Medical collections carry extra limits, since the bureaus voluntarily leave off paid medical collections and those under $500. Before paying, validate the debt, and ask a loan officer how it will be treated if a mortgage is coming.