At a glance
A collection account stays on a Canadian credit report for six years. Both Equifax and TransUnion follow this timeline, but each bureau starts the clock from a slightly different date.
Equifax counts from the date of first delinquency. TransUnion counts from the date you defaulted with the original creditor.
Paying a collection account does not remove it early. The entry stays for the full six years, but shows as paid instead of outstanding.
This six-year credit-reporting timeline is separate from the statute of limitations on debt, which governs whether a creditor can sue you and varies by province from two to six years.
In this guide
How long does a collection account stay on your credit report in Canada?
A collection account stays on your credit report for six years. This is the standard reporting period used by both Equifax and TransUnion, Canada's two credit bureaus.
The six-year clock starts when you first fell behind on payments. The exact start date depends on the credit bureau. Equifax counts from the date of first delinquency. TransUnion counts from the date of first delinquency with the original creditor.
Paying or ignoring a collection account doesn't change its reporting period. Both stay on your credit report for six years.
Source: Financial Consumer Agency of Canada – How long information stays on your credit report
The seven-year rule you sometimes see online comes from U.S. credit-reporting law. It doesn't apply in Canada.
When does the six-year clock start?
Equifax and TransUnion use different starting dates for the six-year countdown on a collection account.
Equifax counts six years from the date of first delinquency on the account. That date is typically when the account was placed with a collection agency.
Source: Equifax Canada – How Long Does Information Stay on My Credit Report?
TransUnion counts six years from the date of first delinquency on the account with the original creditor.
Source: TransUnion Canada – Frequently Asked Credit Questions
In plain English, TransUnion's clock starts a bit earlier. If you fall behind with your creditor in January and the account isn't sent to a collection agency until March, TransUnion counts from January. Equifax counts from March.
The gap typically lasts a few weeks or months. Sometimes, it can be longer, meaning a collection account can drop off your TransUnion report before it drops off your Equifax report.
Does paying a collection account remove it from your credit report?
No. Paying a collection account does not remove it from your credit report before the six-year period ends.
What changes is the status. A paid collection account shows as "paid" on your report. An unpaid one shows as outstanding.
A paid collection account is generally viewed more favourably by lenders than an unpaid one.
Before paying an old collection account, check how much time is left on the reporting period. A payment changes the status but the purge date for collection accounts is tied to the date of first delinquency, not the date of last activity.
Can you get a collection account removed early?
If the collection account contains inaccurate information, you can dispute it directly with Equifax or TransUnion.
Both bureaus accept disputes online, by mail, or by phone at no charge. If the bureau confirms the information is wrong, the entry gets removed.
Source: Equifax Canada – Dispute Credit Report
If the information is accurate, early removal is unlikely. TransUnion's dispute page states that "only inaccurate information may be removed" and that accurate negative information stays on a credit report for the full retention period.
Source: TransUnion Canada – Credit Report Disputes
Some Canadian websites suggest negotiating a "goodwill deletion" or a "pay-for-delete" deal with the collection agency. These tactics come from the U.S. credit system.
In Canada, Equifax and TransUnion require that accurate information stays on file. Even if a collection agency asks the bureau to remove an entry, the bureau can refuse.
If none of those work, the entry stays for six years. The impact on your credit score fades as the collection account ages, even before it drops off.
What is the difference between credit reporting and the statute of limitations?
A collection account has two separate timelines. People mix them up constantly.
The credit reporting period is the length of time a collection account remains on your credit report. That's six years in Canada, governed by credit bureau rules and provincial credit-reporting legislation.
The statute of limitations is how long a creditor or collection agency has to sue you for the debt. That timeline is set by provincial law and ranges from two to six years, depending on where you live.
As of 2026, the rules are below:
| Province or territory | Statute of limitations |
|---|---|
| Ontario, Alberta, British Columbia, Saskatchewan, Nova Scotia, New Brunswick, Manitoba | 2 years |
| Quebec | 3 years |
| Newfoundland and Labrador, Prince Edward Island, Northwest Territories, Nunavut, Yukon | 6 years |
A collection account can fall off your credit report even when the debt is still legally enforceable. Or the statute of limitations can expire while the collection account is still on your report. One process has no impact on the other.
Does the statute of limitations reset if you make a payment?
Yes. In every province, making a payment on an old debt restarts the limitation clock from the date of that payment.
Acknowledging the debt in writing restarts it too. A phone call from a collection agency does not reset the clock on its own.
But if you confirm during that call that you owe the money, you're in a grey area.
Before paying or saying anything about an old debt, check whether the limitation period has already expired. If it has, the collection agency can't sue you. A single payment restarts the full clock.
How does a collection account affect your credit score?
A collection account gets an R9 rating on your credit report. That's the worst possible credit rating. It means a debt went unpaid long enough to be placed with a collection agency or written off.
Source: Financial Consumer Agency of Canada – Understanding your credit report and credit score
Payment history makes up roughly 35% of your credit score, so missed payments leading up to collections will be a major factor.
Source: Equifax Canada – How Are Credit Scores Calculated?
The damage diminishes over time. Credit scoring models weight recent activity more heavily than older entries, so a three-year-old collection account impacts your score much less than one from six months ago. Multiple collection accounts make the damage worse
How can you rebuild credit while a collection account is on your report?
A collection account doesn't damage your credit score forever. You can rebuild while it's on your credit report.
Try to make every payment on time, as payment history carries the most weight. One missed payment on a current account can undo months of progress.
Keep your credit utilization below 30%. If your credit card limit is $5,000, keep the balance under $1,500. Lower is better.
Source: Financial Consumer Agency of Canada – Improving your credit score
A secured credit card is a good way to add a positive tradeline to your report if your options are limited. You put down a deposit that becomes your credit limit. Use it for small purchases and pay it off each month.
Don't close old accounts in good standing. The age of your credit history is a factor in your score. Closing your oldest account shortens that history.
Source: Financial Consumer Agency of Canada – Credit report and score basics
Frequently asked questions
Do collections disappear after 7 years in Canada?
No. The seven-year rule comes from U.S. credit-reporting laws. In Canada, a collection account stays on your credit report for six years, not seven.
Both Equifax and TransUnion follow a six-year reporting period, though each starts the clock from a slightly different date.
Does an unpaid collection account get removed from a credit report in Canada?
Yes. A collection account is automatically removed after six years, regardless of whether you paid it. Paying a collection account stops potential legal action and changes the status to "paid" while the entry remains.
Can a collection agency report a debt to the credit bureau after the statute of limitations has expired?
Yes. The limitation period only stops a creditor from taking legal action against you. It does not prevent a collection agency from reporting the debt to Equifax or TransUnion.
The credit-reporting period and the limitation period are two separate timelines governed by different rules.
How do I check if a collection account is on my credit report?
You can get a free copy of your credit report from both Equifax and TransUnion. Request one from each bureau, since not all creditors report to both. A collection account appears in the collections section of the report with an R9 rating.
Source: Financial Consumer Agency of Canada – Getting your credit report and credit score
Does paying off a collection account improve my credit score?
Paying a collection account changes its status from outstanding to paid. A paid collection account is generally viewed more favourably by lenders than an unpaid one.
The entry itself remains on your report for the full six-year period regardless of payment.
Can a collection agency put the same debt on my credit report twice?
No. If the same debt appears more than once, such as under both the original creditor and the collection agency as separate active accounts, it is likely a reporting error. You can dispute duplicate entries directly with Equifax or TransUnion.
Does a collection account from another province follow me if I move?
Yes. Credit reports are national. Equifax and TransUnion maintain files that follow you across provincial borders. Moving provinces does not remove a collection account or restart the six-year reporting period.
What to do if a collection account is hurting your credit
If a collection account is dragging down your credit score and you're struggling with the debt behind it, a non-profit credit counselling agency or Licensed Insolvency Trustee can help you understand your options at no cost.