When Do Collections Fall Off Your Credit Report?

In Canada, most collection accounts stay on your credit report for about six years from the date you first became delinquent on the debt that went to collections.

After that, they usually drop off automatically, even if you still owe money.

That doesn’t mean you should ignore them—but it does mean collections don’t follow you forever.

KOHO Essential to Avoid Future Collections

Once you’ve had a debt go to collections, the most important thing is not letting it happen again.

KOHO Essential can help you stay in control of day-to-day money:

• It has a low monthly plan fee that can be waived when you set up direct deposit or add +$1,000.

• Use a prepaid Mastercard® for groceries, bills, subscriptions, and travel.

• Grow your savings with a 2% interest savings rate on your entire balance.

• Earn 1% cash back on groceries, eating & drinking, and transportation.

• You can subscribe Credit Building for $10/month, it's an affordable way to build your credit history.

• Enjoy unlimited transactions and free e-transfers (never worry about fees when sending money to someone again).

What Does “Going to Collections” Mean?

A debt goes to collections when:

• You stop making payments for a while

• The lender decides to send or sell the debt to a collection agency

Once that happens, the collection shows up as a negative item on your credit report and can make it harder to get approved for new credit or good rates.

How Long Do Collections Stay on Your Report?

In general:

• A collection account will stay on your credit report for around six years from the date you first defaulted (the missed payment that led to the collection).

• This timing is not reset every time you make a payment on that collection.

Even if you pay it off, the entry can remain for that full period—but it will show as paid, which looks much better to lenders than an unpaid collection.

Does Paying a Collection Remove It?

Usually no—paying a collection:

• Won’t make it instantly disappear from your report

• But will update its status to something like “paid” or “settled”

That can still help you because some lenders:

• Care a lot about whether you ignored debts vs handled them

• May be more willing to work with you if old collections are resolved, not active

How to Rebuild While You Wait for Collections to Fall Off

While you’re waiting for time to do its work, focus on:

• Never missing payments on current bills and credit products

• Keeping balances low on any active credit cards or lines

Over time, lenders see less of the old damage and more of your newer good habits, and your profile slowly recovers.