Amount of Debt Collection

by Amber
(Denver, CO)

My husband and I are trying to buy a house, but are being told that we do not qualify because we can't have a collection on our credit for over 12 months. My husband has a collection from Direct Tv for 69 dollars that we have paid. I was told that anything under 200 dollars is not allowed to be put on our credit, so the Direct tv collection should not be on my husbands credit. Is this true?

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Dec 22, 2011
Amount of Debt Collection

No Amber. There is no rule like you are referring to. Both large and small past due debts are reported to the credit bureaus and a small debt that ends up in collections can be as damaging to your credit as a large one. It's less about the amount of the collection account and more about the fact that an account ended up in collections in the first place. Once a past due debt has been reported to the credit bureaus, the federal Fair Credit Reporting Act says it can remain there for no more than 7 years and 6 months after the account first became delinquent.

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