If you pay collections off that are on your credit report, does that help any???

Question

I know it will stay on your credit report as a paid collection, but does it help any??? Your score??

Answer 1

a paid collection is no better than an unpaid collection when it comes to credit score. the only difference is the collection will be marked as paid but it will still be listed as a negative on your credit report.

Answer 2

When you pay off an account in collections there is a note on the account that says "paid in collections" and if you make an agreement to pay a smaller amount than the original debt that is noted too. Both of these work against you but if you ignore an account in collections it comes up as an an outstanding deliquent account and even if it were your only bad account creditors my decide to either not give you credit or charge you a higher interest rate based on that account. For more information on this check out http://creditwisdom.blogspot.com/2006/09/credit-report-timeline.html

Answer 3

Absolutely!! Creditors can make life a living hell for anyone. I had paid a bill for $100 but someone messed up and it did not go through.. Which was news to me until I got a letter from the creditors. I was shocked. I have always paid my bills in full as long as I can remember. Being reported can affect future plans, such as being approved for credit/ buying a house/getting a loan etc... Now they will work with you in regards to a payment plan if you do not have all the money upfront. I know this sucks, but be patient and nice on the phone to them as well, because that can make a difference.. Keep an eye on your money!! You will recover!!

Answer 4

Yes, it will help but only if you are planning on a big purchase like a home.

As far as I know your score will not raise just because you paid off an outstanding debt. You would have to have the creditor request removal of your unpaid/collections status and show the debt as paid in full per agreement for your score to change.

Answer 5

Sort-of. The impact could be negligible.

Sometimes, it actually goes down-- your credit report figures a 'new' collection hurts more than an old one-- and sometimes they just go by "last reported' Date-- and so when you pay it off, you 'refresh' the information..

However, consider calling them and agreeing to pay on the condition they remove it from your report-- they seem to want their money more than to ding your report, sot hey do this fairly often.

You can also try and dispute paid collections-- and they often dont respond to the dispute, so they fall off after 30 days.

Answer 6

Make sure it's not an old account. Older than 7 years I think, because if it was wiped off your credit report because of time and then you pay it, it will show back up on your account as paid but it is still a strike that it was delinquent at one time. MSN Money has alot of useful reading/information on this stuff.

Answer 7

My husband and I went through this before. I was told by my attorney that paying it off would not help my score and it in fact might hurt it. I am sorry I can't recall his exact explanation but I remember thinking that it made sense. We had two on our report from my father n law's funeral where we paid our part but his brothers didn't pay their part. We finally called the funeral home and explained to them what had happened and luckily got it taken care of. I did have one from the flower shop too and when I called them they agreed if I paid the bill of $190, that they would remove it from my credit report; and they did.

Answer 8

yes it will but recheck the report and Make sure the collection company has reported it correctly. They are quick to put it on and slow as heck to show paid collection.

Answer 9

Yes. Also you can NEGOTIATE with the collector and they may accept less than full price. Do it only on condition they do not report that you negotiated it down but that they report to the credit bureau that the account is paid in full.