Debt collection

Once you're referred to collection it's up to the collection agencies to report that you have a collections account. Being placed in collection is more negative than just being late on payments.

Tip: Pay off past-due accounts. Don't expect the inactive status to make this negative mark fall off your report any faster.
Put a brief “consumer note” on your report explaining this uncharacteristic lapse.

It won't change your score, but if an actual human being is reviewing your credit application, he or she will see it and can consider it when making a decision about doing business with you.