I Paid off a Collection and It’s Still on My Credit Report, Now What?

It's essential to note that even after a debt is paid and reported correctly, it will remain on your credit report for a period—typically around six years in Canada.
Bruce Hodges
November 13, 2023
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I Paid off a Collection and It’s Still on My Credit Report, Now What?

Let's tackle that question head-on.

Are you glancing at your credit report and feeling puzzled because that collection account you paid off is still staring back at you? I understand how frustrating this can be. After all, you've worked hard to clear that debt, and seeing it linger on your credit report can be disheartening. But don't worry; there is a clear pathway to resolve this issue, and I'll walk you through the steps you need to take to get your credit report looking as sound as your financial habits.

Step 1: Understand the Credit Reporting Process

First, it's important to understand that credit reports are historical documents. They reflect the history of your credit accounts, including those in collection. In Canada, after you've paid off a collection, it doesn't immediately disappear; it will usually show as "paid" which is actually better for your credit worthiness than an outstanding collection. Payment history is a significant component of your credit score, and showing that you've resolved past debts does work in your favour.

Step 2: Review the Details

Review the entry carefully. Make sure it's updated to "paid" and that the balance shows zero. If there are inaccuracies or it hasn't been updated, you will need to take action. Make sure the date of last activity and the payment status are accurately reflected.

Step 3: Gather Your Evidence

To successfully dispute any inaccuracies, gather all evidence of your payment. This includes receipts, bank statements, and any communication with the creditor or collections agency. Documentation is key when disputing any discrepancies on your credit report.

Step 4: Contact the Credit Bureaus

If your credit report has not been updated correctly, reach out to the credit bureaus (Equifax and TransUnion in Canada). You can file a dispute directly with them to have the information corrected. Provide them with all the evidence that proves the debt has been paid. They are obliged to investigate and correct any inaccuracies within 30 days.

Step 5: Reach Out to the Creditor

Simultaneously, contact the creditor or the collection agency that reported the debt. Inform them of the discrepancy on your credit report and request that they update their records and notify the credit bureaus of the change. It's also helpful to get a letter from them that confirms the debt has been paid.

Step 6: Follow Up and Monitor Your Credit

After you've taken these steps, follow up to ensure the changes have been made. You can keep an eye on your credit report by using the free services offered by the bureaus or by signing up for credit monitoring. In Canada, you're entitled to one free credit report per year from each bureau, so use these opportunities to your advantage.

Sometimes It Just Takes Time

It's essential to note that even after a debt is paid and reported correctly, it will remain on your credit report for a period—typically around six years in Canada. However, as time goes by, its impact on your credit score lessens, especially as you continue to build positive credit history.

At Parachute Loans, we understand that overcoming debt hurdles is more than just getting back to a zero balance—it's about paving the way to a brighter financial future. That's why we offer unique debt consolidation solutions that not only help you manage and reduce your high-interest debt but also provide up to 10% cashback on your loan for continued financial well-being. Our services are designed to leave you with improved cash flow, better interest rates on future loans, and an enhanced credit score by the end of your consolidation term. If you're facing high-interest debt and seeking a compassionate approach to consolidation with additional perks, we're here to support your journey.


Once you've dealt with high-interest debt and sorted out any issues on your credit report, it’s all about maintaining those healthy habits. Remember, Parachute Loans is committed to helping Canadians improve their financial situation, and we'd be honoured to be a part of your story to financial wellness. If you have collections on your report, and especially if you're grappling with high-interest debt, reach out to us. Our debt consolidation products are tailored to serve as a solid foundation as you take that leap towards financial stability.

We believe in a supportive approach and are here to ensure you land on your feet, financially stronger and ready for the future.

Bruce Hodges
Bruce, Founder and CEO of Parachute, worked for several of Canada’s top Banks, published research for the Canadian Bankers Association, and taught E-commerce Strategy in Wilfrid Laurier University’s MBA program. His first start-up built credit solutions for the likes of National Bank, Fair Isaac, and Ford Credit globally. Prior to starting Parachute, Bruce was COO of Foresters Financial, and EVP Transformation at CIBC, one of Canada’s top 5 banks. Bruce founded Parachute to disrupt the financial wellness space taking on payday, and high interest predatory lenders, with the intent to bring at risk Canadians back from the brink to good financial health.
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