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What is a collection account on a credit report?

What Are Collection Accounts? A collection account is an entry on your credit report that signifies an unpaid debt in default (more than 90 days past due) that your creditor has turned over to an in-house collection department or a third-party debt collection agency.

How does a collection account affect my credit score?

A collection account may be reported to one, two or all three of the nationwide credit bureaus (Equifax, Experian and TransUnion) and reflected on your credit reports. It can also have a negative impact on credit scores, depending on the credit scoring model (different ways credit scores are calculated).

How do I know if an account is in collections?

Accounts in collections appear on your credit report and can have serious repercussions for your credit scores. It's usually not necessary to check your credit report to find out if an account is in collections because collection agents are very proactive and persistent in their efforts to get payment.

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