The full explanation
The account can show up on your credit report; once you pay it, it should generally show a zero balance as a paid collection. Most negative information can be reported for up to seven years. If you think you do not owe the debt or the amount is wrong, you can dispute it with the collector and with the credit reporting company.
An example
Julio left the last bill for his cell phone unpaid. Months later, a collection agency writes to him and the debt shows up on his credit report. Before paying, Julio checks that the amount is right; if it is not, he can dispute it.
You will see it in…
- Your credit report, in the collections section
- Letters or calls from a collector, who must give you certain information about the debt
- Your credit report after you pay, as a paid collection with a zero balance
