Special situations

Can I get a personal loan with collections on my credit?

Short answer

Possible with online subprime lenders. Mainstream lenders typically decline applications with active collections under $500. Older or paid collections are less damaging. Medical collections under $500 are ignored by modern FICO scoring models (FICO 9, FICO 10).

Context

Newer FICO models (FICO 9 and FICO 10) and current VantageScore models ignore paid collections entirely and treat medical collections differently than other consumer debt. Some lenders use these newer models; many still rely on FICO 8 or older.

For borrowers with collections seeking a loan: prioritise paying or settling the largest open collection first (negotiating for 'pay for delete' if possible), then wait 30-60 days for the credit bureau to update. The score impact of removing a single significant collection is often 30-60 points.

Editorial

Reviewed by: Compliance Review
Last reviewed: May 22, 2026

Glossary: Charge-off

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