If I wanted to get a loan and I had a closed collection account on my credit report how would that effect things? Do I still need to pay the money?
2007-03-26 09:37:28 · 4 answers · asked by Jennifer K 2 in Business & Finance ➔ Credit
A closed account does not mean it has been paid. Many creditors will list your account as closed if it has not been paid and they turn it over to a collection company. The collection company will open an account on your credit if their own as they now own the debt. You should know if you have paid it or not. Once the collection agency has been paid they will most likely update you credit to reflect a paid account. Either way, the account will be on your credit for 7 years. A paid account is better than not paid for sure.
2007-03-26 09:46:46 · answer #1 · answered by mmszbi 2 · 0⤊ 0⤋
It's better if the account was closed after being paid.
I personally wouldn't go back and pay the money. Here's why - it's already probably a negative on your credit report. Negatives stay with you for 7 years. If you make a payment now, that resets that 7 year timeline so it'll take longer for it to come off your report. Plus, even if you did pay it, it probably wouldn't bump your score up that much anyway.
Your best bet is to focus on paying your bills on time NOW and building new credit. Be good for a year and you should see improvement.
2007-03-26 09:46:49 · answer #2 · answered by Kiwi 5 · 0⤊ 0⤋
was the account closed as "paid off" and "paid satisfactorally" You actually want those like that on your credit report.
Creditors dont want to see things like "handed off to collection agency" etc..
"Closed due to non-payment" etc..
2007-03-26 09:41:11 · answer #3 · answered by m34tba11 5 · 0⤊ 0⤋
it mean that it is paid and now closed.. I don't think it will hurt u..
2007-03-26 09:41:59 · answer #4 · answered by shorty21 5 · 0⤊ 0⤋