Dear Melissa,
Curious? 4 years ago I had an 815 FICO score, then unfortunately a $68 hospital debt slipped through the cracks … and went into collection. I immediately paid it. But you can imagine the rest. I have a spotless 20 yr credit history and less than $1,500 debt altogether. The $68 collection has pulled me down to a 703 FICO. Should I attempt to approach the hospital about this before it falls off in 3 years? I’ve heard that if an issue is “reopened” before the 7 yr date, it is “extended” for another 7 years. Should I let well enough alone? Thanks in advance.
Michael D.
Dear Michael,
The amount on wrong information on the Internet always amazes me! I have heard about this “extension” of collection items on credit reports from many people. But I can tell you with the utmost certainty, it is most definitely false.
A collection item will remain on a consumer’s credit report 7 years from the date it was reported. This does not vary by state but is universal. When a collection item is paid, no matter how many years after the item was first reported, it would still only remain on a person’s credit report up until the original 7-year date. It is easier to think of in this way.
Delinquent accounts by the masses are sent to collection agencies every year. Some people are unable to pay; others are unable to be found. Three and a half years later plus one day, these consumers are able to pay or have been found. Since it is one day closer to the 7 years, what is the incentive to pay? Why would they want to prolong this for 7 more years? This is why this urban myth is not true. The incentive is that by paying the item, for the remaining three and a half years, the item will be seen as paid and their score will increase.
In your case, the hospital has no incentive to work with you and have this removed from your credit report, because you have already paid the bill. You can certainly try without fear that the item will remain for another 7 years, but the chances are very unlikely. The good news is that in three years, the item will fall off, and it will be as if it was never there.
Do YOU have a question for Melissa? Email her at melissa@dovcocs.com.
Melissa Douros
Dovco Collection Solutions, Inc.
As the owner of Dovco Collection Solutions, Inc., Melissa Douros uses her eight years of being a collections specialists to offer advice and answer questions pertaining to debt collection. With running her own successful collection agency, she seeks to keep debt collectors accountable for their actions and in line with the law.
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