How Collections Impact Your Credit Report
Your credit report is meant to give potential lenders information on how you've used and managed your credit responsibilities with both positive and negative information. If you pay your bills on time and keep the balances on your accounts low, your responsible credit behavior Will be reflected on your credit report. However, if you've paid late or skipped payments altogether, that information will also appear on your report.
A late payment on a credit report is negative, and the more recent a late payment is, the greater impact it has. Accounts that get to the collection stage are considered seriously delinquent and will have a significant and negative impact on your credit report.