What happens when I finish paying my debt to a collection agency,will this reflect on my credit report?

Answer 1

For 7 years, it will show that the account was bad and went to collections.

The other problem is that sometimes collection agencies only update things every quarter or less. So, it could be a good six months before your credit reports reflect the $0 balance. You will have to write them a certified letter to get them to update your account sooner.

Answer 2

You will have the satisfaction of having taken care of your financial responsibility. The debt will show paid which is much better than unpaid bad debt.

Eventually the negative will fall off your credit report (7 years). But he older it gets, the less impact on your credit score. Pay all your bills on time every month and your score will grow.

Answer 3

Unfortunately, your credit score will not go up automatically when you finish paying your collection. To raise your score again, You need to re-establish a history of on-time and consistent payments. The easiest way to do this is to get a secured (pre-paid) card from a bank and put one small bill on it that you pay every month anyway (say, utilities), and make sure you never charge any more than 50% of its value.

Answer 4

Before you even started paying the debt you should have negotiated a written document stating they would remove the negative info from your credit reports after payment was made.

Otherwise it just shows as a paid collection.

Answer 5

If they report it to the credit bureau as paid in full. If they don't then it will be up to you to challenge the report (I hope you kept all your receipts) and get it removed that way.

Answer 6

It will show paid, but that particular debt will always show "slow".