Learning Center › Store and retail credit cards
Can Store Credit Cards Go to Collections?
Smart Loan Relief editorial team · Updated November 7, 2026 · Educational only, not legal, tax or financial advice.
Yes, store credit cards can go to collections if you fall behind on your payments for several months. When this happens, the original retailer or bank may charge off the account and hire a collection agency to recover the money.
What Happens When Store Credit Cards Go to Collections?
Retail store credit cards work much like regular credit cards. When you open an account at your favorite clothing store, department store, or home goods retailer, you are borrowing money through a bank partner. If you miss multiple payments, the issuer will eventually close the account and charge it off.
Once an account is charged off, the lender often sells the debt to a third-party collection agency or hires them to collect on their behalf. At this point, you may start receiving frequent phone calls and letters from collectors demanding payment.
How Collections Affect Your Credit and Finances
Dealing with retail card collections can be stressful, and it usually brings significant financial consequences. Here is what you need to know about the impact:
- Credit Score Damage: Late payments, charge-offs, and collections accounts can severely hurt your credit score. This can make it harder to rent an apartment, get utilities, or secure other types of loans.
- Added Fees: Depending on the terms of your agreement and state laws, collection agencies may add extra fees or interest to the balance you owe.
- Tax Consequences: If a creditor forgives a portion of your debt through a settlement, the IRS may consider that forgiven amount as taxable income.
Debt settlement is not right for everyone, and results vary. Not all debts settle, and debt settlement can harm your credit. You should check your own situation with a qualified professional before making big financial choices.
Types of Debt You Can Address
If you are struggling with multiple kinds of debt, it helps to know what options are available. At Smart Loan Relief, we can help negotiate certain types of accounts, including:
- Credit and store cards
- Personal and installment loans
- Medical bills
- Payday and cash advances
- Collections accounts
- Business debt and merchant cash advances
- Auto deficiency balances
- Private student loans (note that federal student loans are not eligible)
For secured debts like car loans, auto leases, title loans, and mortgages, the process is different. These are not settled like card debt. Instead, a customer care officer reviews them personally and explains your options. We never promise a specific result, and only a human specialist can confirm eligibility.
How Smart Loan Relief Works
If you choose to work with Smart Loan Relief, our program is designed with transparency in mind. We negotiate with creditors on your behalf to try and resolve your enrolled accounts.
There are no upfront or monthly program fees. A 35% success fee on your enrolled debt is due only after an account is successfully settled and its balance is verified at $0. Please note that the signed agreement always controls the actual terms.
When it comes to payments, card payments are only accepted on a hosted provider page, and our staff verifies every payment manually for your security.
Get Help Today With a Free Review
If you are feeling overwhelmed by store credit cards and collections, you do not have to figure it out alone. Take the first step with a free, no-obligation initial review that requires no credit check. Only a human specialist can confirm your eligibility. Contact us at help@smartloanrelief.com or fill out our website form to get started today.
Frequently asked questions
Can store credit card debt be settled?
Yes, store credit card debt can often be negotiated and settled for less than what you owe, much like standard credit card debt. However, results vary, not all debts settle, and forgiven debt may have tax consequences. Only a human specialist can confirm your eligibility after a review.
Are there upfront fees for debt relief?
At Smart Loan Relief, there are no upfront or monthly program fees. A 35% success fee on enrolled debt is due only after that specific account is successfully settled and its balance is verified at $0. The signed agreement controls all actual terms.
Will debt relief hurt my credit score?
Yes, debt settlement can harm your credit because accounts are typically left unpaid while negotiations take place so funds can accumulate for settlements. However, resolving past-due accounts is often a step toward long-term financial recovery.
Are federal student loans eligible for this program?
No, federal student loans are not eligible. However, private student loans, credit and store cards, personal loans, medical bills, collections, and several other types of debt can be reviewed for potential settlement.