Original creditors (OCs) that go back in terms of payment history will eventually show as a charge-off (CO). In other words, a CO is a bad OC account.
Collection agencies (CAs) collect on debt either assigned by OCs or sold by OCs.
Reporting COs:
1) factor into your length of history.
2) factor into your AAoA.
3) will sometimes factor into your util if a CC (that CC must report a CL and balance).
4) COs can still report a balance up to the point they are sold or paid.
5) COs will most usually report as a paid CO once they sell it or paid.
6) COs can update your TL with new lates monthly along with a higher balance if your agreement with them allowed it.
7) They will have a DOFD.
8) FICO-wise, COs are scored equally whether paid or unpaid, util aside.
9) FICO-wise, added lates, like 90+ days, won't have an impact since the worst delinquency is the CO itself. However, the continual updating can hurt.
10) The date opened refers to when you opened an account with that OC.
11) It is possible to get a CO to report as a positive if they remove the lates and the CO comment.
Reporting CAs:
1) Do not factor into your length of history or AAoA.
2) Will list the OC if you get your full report from annualcreditreport.com or directly from the CRA.
3) The date opened refers to when the CA acquired the debt or account.
4) The DOFD must match the OC's.
5) They aren't as aggressive in updating as OCs.
6) They can update the balance if your agreement with the OC allows them to add interest.
7) Like with COs, per FICO, they are scored equally whether paid or unpaid.
8) Per FICO, a $0 balance is of no use at all to your score or credit.
9) Sometimes they'll report with your Accounts and report lates even, but that's either the CA or CRA's doing. Per FICO, it has zero impact.
10) Unlike COs, there is nothing you can do to get a CA to report positive.
Score-wise, both CAs and COs are scored on par. If I had to choose either, it would be a CO because at least the CO might have some history behind it.
