When you pay off collection accounts, can they be taken off your credit report completely?

Question

I have accounts that I have made payment arrangements on and now they are completely paid off but they are still listed on my credit report but the status says "paid in full". I heard that you can get paid acounts taken off of your credit report.

Answer 1

It is kind of a double edged sword.

If you pay off your accounts, they can list on your credit report that they are paid in full. However, because the damage is already done (as in you were late, defaulted, derogatory credit, etc.) it is still going to be on your credit report. I know paying the debt off doesn't seem like much help, does it?

Prior to paying off the debt, you should have gotten in writing that you would pay off said debt within X amount of time and that the company would remove all information from your credit report. It is probably too late now, but you may as well try.

Worst case scenario, it will all have to be off of your credit report 6 years and 7 months after the first day that the account defaulted. Hopefully you have some proof of this, because you'll have to petition the credit bureaus. (I had to do this, because my accounts kept being sold and therefore showing as current, even though they had defaulted 7 years prior.)

Good luck.

Answer 2

All answers are right - 7 years to fall off from last activity date (today) - but there is more. Credit bureaus have to have "verifiable" info to report it on your report. If there is a dispute, they have to be able to verify the accuracy with the collection agency within 30 days, or the whole thing comes off. Often times the collection agencies are sloppy about how they report accounts, incorrect amounts, dates, original creditor names, etc. When you owe them money they are VERY diligent about responding to verification requests. HOWEVER, after they are paid, who cares? They are more likely to fail the 30 day response requirement.

If you see any hint of an error on a PAID and CLOSED account - dispute it in writing, but wait a few weeks from the pay off date to give them a chance to lose your file...

Good luck!

Answer 3

No! They will not be removed from your credit report. However, it will raise your credit score if they are paid. It will take several years before they will disappear off your credit report. Also, they take points off your credit score for every time that your credit report is ran by anyone. So, it is a good idea to keep your credit applications down to a minimum.

Answer 4

No, there is no way to have them removed completely. Once they are paid, they will show up as paid collections. As a Credit Analyst myself, unless there are an abnormal number of collections reporting on an individual's credit report, as long as they are paid, we don't even take them into account when making our decision. If they remain unpaid, some companies have policies stating that they will not lend to any customer with collections, public records, or liens reporting on their credit bureau. They will continue to negatively impact your credit score until they are paid, but once they're paid, you can begin to rebuild your score.

Answer 5

the unique creditor probable DID write the money owed off, no matter if you ultimately paid a collector, so the comments are probable precise. in which case, you are able to dispute all of it you pick, yet they are going to easily positioned it lower back on there. I had credit probs from college, too. Now, i have wiped clean them up & I now no longer borrow for some thing - NOPE, by no ability! for this reason, i could not care a lot less about my credit. I in consumer-friendly words examine it to be sure no one has stolen my id. I stick with Dave Ramsey's "total money Makeover". I strongly advise you examine it.

Answer 6

The problem is that the credit reporting lag time is too slow. More than that, you are the only one with a vested interest in getting exactly what you are talking about off the report. Check out this credit place http://www.jdoqocy.com/click-1995821-10293241. They might be able to help you.

Answer 7

The answer to that one is no. Couple of things you can do is to dispute the item. If they do not get a reply then it will come off. But basically the collection agaency is under no obligation to remove it.
Paying these in reality did nothing to help you in your credit situation. What you should have done is have a written agreement with the collection agency first. They will tell you they can't remove it. Not true they can if they so desire. I have fought this for a lot of people and it can be done.
Also you should have made them validate the debt first not verify it. Validation is very hard for them to do and if they can't it has to come off.

Answer 8

They will be listed for the next 7 years.

If you wanted them taken off, the only way you could do it was to negotiate before hand. What you could have done was to get it in writing, signed and notarized, that the creditor would remove the accounts from your credit report in return for the new agreement to pay in full.

You have no negotiating position whatsoever at this point though. And I hope there is no "next time" for you to be in this situation, so my advice is a bit useless, but you asked.

Answer 9

No. It takes 6 years or so for it to come off your credit report. Listen to me very carefully... Make sure you keep documentation on the PIF and have the company send you someting in writing if you don't have anything. You may get other phone calls from different companies about the same exact issue. This happened to me twice for a cell phone bill and i had to send proof i PIF

Answer 10

I believe it will stay on your credit report for 7 years after the last date of activity.