Why are there collections on my credit report?

It’s possible that you missed a notice or a call from a creditor. Medical bills and utilities are two common examples: - One medical procedure can result in multiple bills from different providers. If you miss one bill, it may fall into collections—even if you paid off the other bills related to your treatment. - If you recently moved, your previous utility companies may not have your current address. You may fall into collections if you don’t receive and pay a final bill.

How does medical debt appear on my credit report?

- Paid medical debt does not appear on credit reports. - Unpaid medical debt will not appear on your credit report for one year from the date of the original delinquency, where permitted by law. This gives you time to work with your insurance or healthcare providers to address the debt before it is reported on your credit file. - Medical collection debt under $500 does not appear on credit reports. - Some states have additional laws regarding medical debt.

Disputes and Collections

If you see an account in collections on your credit report, you’re not alone.

Collections and Your Credit Report

Where Collections Come From

Collections can come from the original creditor or a third-party collections agency that’s contracted by that creditor. If you don’t recognize the account, contact the company listed on your credit report.

How Collections Appear On Your Report

Even if you paid off a collections account, it can remain on your report for up to seven years from the date of first delinquency. There may be state laws which impose shorter timeframes or other restrictions on the reporting of collections.

Common Questions About Collections On Your Credit Report

You have the right to dispute incomplete or inaccurate information.

First, contact the creditor or collections agency and verify that the account in collections is accurate. If the collection agency confirms there was an error in its reporting of the account, you can dispute it directly with that company or through the TransUnion Service Center.

If you suspect a collection is fraudulent, you should report the fraud at identitytheft.gov and then file a dispute.

If the agency verifies that disputed information is accurate, it may continue to report that information.

It’s possible that you missed a notice or a call from a creditor. Medical bills and utilities are two common examples:

One medical procedure can result in multiple bills from different providers. If you miss one bill, it may fall into collections—even if you paid off the other bills related to your treatment.
If you recently moved, your previous utility companies may not have your current address. You may fall into collections if you don’t receive and pay a final bill.

Typically, accounts that are closed in good standing will stay on your credit report for up to 10 years. Accounts closed with adverse information, like accounts with reported late payments or those sent to collections, are generally removed from your credit report after seven years.

Paid medical debt does not appear on credit reports.
Unpaid medical debt will not appear on your credit report for one year from the date of the original delinquency, where permitted by law. This gives you time to work with your insurance or healthcare providers to address the debt before it is reported on your credit file.
Medical collection debt under $500 does not appear on credit reports. 
Some states have additional laws regarding medical debt.

Start the Dispute Process

Here's how to file a dispute online with TransUnion^®. It's free to create an online account and free to file. You can also dispute for free by mail or phone.