Simply put, it’s an account that is significantly delinquent!
As you may or may not know, collection accounts can be very serious and cause poor credit ratings, expensive court judgments that result in loss of wages, denial of renting, or owning a home.
Typically, a collection account has had no activity for at least six months. Yes, you’ve gone months without paying the account. The original creditor does not usually send an account to collections until it is at least 180 days delinquent, so from the first date that your account goes past due, you have 179 days to correct this issue before it becomes a collection account. If you don’t have the money to pay the account at the time, make payment arrangements to avoid it going to collections. Once an account goes to collection status on your credit report, it’s there as a collection, EVEN IF YOU PAY IT IN FULL. Once a collection…always a collection.
If you’ve made up your mind that you’ll pay for credit repair to get rid of your collection accounts, remember credit repair costs too, so it could have been cheaper just to pay the debt before it became a collection account. Open your bills, talk to your creditors, make payment arrangements when necessary, and seek help if you’re lost or overwhelmed.