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New collections on old debt - credit score impact

New Member

New collections on old debt - credit score impact

Hello everyone - new to the myfico forums! 


I just completed chapter 7 bankruptcy in August of this year which, of course, wiped out all of my debt except student loans. My question is reguarding private student loans that have been charged off since 2014. The owners / collectors of these debts periodically change hands with long periods of time where there are no collections appearing on my credit reports. I haven't had any collections for these loans appearing on my reports in about a year. 


However, if / when some new company buys these and decides to start collection activities, what impact will it have on my credit score? As I mentioned, they have been charged off since 2014. If a new collection account appears on my credit report, since they will reference accounts that were charged off 4+ years ago, will the impact be minimal? 

Message 1 of 2
Legendary Contributor

Re: New collections on old debt - credit score impact

When a debt collector reports a collection that is open and unpaid, they must also report the date of first delinquency.

The peirod from date of initial delinquency up to the current date establishes the overall period of delinquency that continues to increase with each updated reporting, or reporting by a new debt collector.

That affects scoring, similar to a creditor reporting increase in delinquency under their account from, for example, 60-late to 90-late.


Paying terminates any continued reporting as an unpaid, open collection with a balance, and thus freezes the overall period of delinquency, thus permitting the collection to begin to age in scoring effect.


No, unpaid collections do not diminish in scoring impact as the time from initial delinquency grows longer.

That only applies to paid collections.



Message 2 of 2
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