ok, here is the deal. Your credit rating doesn't distinguish what product isn't being paid or what ends up in collections. When something ends up in collections, this will also affect your credit rating. Dates, amounts, balances, and other creditors if any. All plays a factor if you seek or look for credit in the future.
If you don't pay a major credit card that results in a charge off and they sell it to a collection agency, your credit report will show the payment history and charge off of the credit card and the collection. So, it has two events on your credit report.
If you are looking for secure credit such as a mortgage, vehicle or line of credit and even another credit card, the lender may just ask about it and go on their merry way. Some my charge you more interest because of the risk. It really depends on what is happenning.
Someone with a mortgage, line of credit and a credit card that maintains small balances and pays them regular for the last 10 years and ends up with a collection from telus may not even be looked at twice depending on what they want.
Settling or resolving a bad debt is better than having an outstanding one. Depending on the creditor, you maybe able to work out a deal with them or the collection agency they sold the debt to. Some simply wont. Others may. It's best if you can deal with the original creditor. They can buy back the bad debt and work with you sometimes.
Bankruptcy will stay on the credit report 7 years after the discharge date. Some believe it's 7 years after they file. And if you have any kind of late payment or bad debt within those 7 years, the bankruptcy may stay on the report longer as it demonstrates a pattern of poor payments/bad debt after a bankruptcy. So, don't take it for granted the bankruptcy will fall away after 7 years like a lot of folks. I've seen some folks take years before they are discharged from their bankrupcty.
Just a few thoughts........
