paying off a collection?

Question

i just payed off a collection thru hollywood video lost 2 dvds it was 130.00 and they settled for 70.00 dollors and sayed that on my credit report it well say satified well it move my fico scores up or stay the same?

Answer 1

As Echo states, this is one of the dirty little tricks collection agents pull on you.

You think that by paying off your debt, you will improve your credit. Not so! Your credit report will now say "paid", but it still reflects that it went to collections. It's still going to hurt your score.

Lesson learned...you must get the creditor to agree IN WRITING to remove all negative information from your credit report.

Also, the collection agency that handles Hollywood Video rarely ever sues. They are content to just trash your credit report. They ignore most dispute letters. So good luck trying to get this removed.

Answer 2

Unfortunately it will probably just show as a paid negative. Which is about as bad as an unpaid negative.

You should have requested a complete deletion upon payment, but you might try and request that they remove the whole trade line. Since it's after the fact and you have no leverage, I doubt they would do it. But you can try.

You also might try disputing the trade line with the credit bureaus.

One other thing that they might do is sell the remainder that you did not pay. I'm not saying that it is a sure thing that they will do that, just that they might.