Is it true that when u fully pay a debt to a collection agency, ur credit score raises somewhat instantly???

Question

When we have debt's pending, and are completely paid to a collection agency, or a credit card company is it true that even slightly ur credit score will increase????

Answer 1

Yes, when you pay off your debts your score goes up.

Answer 2

No No No, unless you get in writing that upon payment of this debt all negative information will be removed, it stays on there for 7 years, but show a 0 balance. Paying them without this written guarantee will not change, or up your credit score at all, as it was a debt in collections.

Answer 3

in accordance to the ordinary debt sequence act, paying previous debt does not reset the time an merchandise continues to be on your record. How previous is amazingly previous? 2 years? 6 years? Do you have any open money owed that are in sturdy status? ie you pay on time. cost historical past over the final 3 to 4 years makes the biggest effect on the score. another issues that effect the score are: length of credit historical past. Debt to accessible credit ratio. Revolving vs installment debt. (a multitude of revolving credit could be a unfavorable.) coaching for raising the score: one million. Pay all costs on time. 2. shrink debt to decrease than 35% of available credit on revolving balances. My view is that individuals would desire to pay previous debt. no longer by using fact the cost will develop their credit, yet by using fact they owe the money and that's the best difficulty to do.

Answer 4

No this is not true. The collection agency has to report your account as paid and even then it can hurt you more if the account is old and is already getting ready to fall off your credit report. If this account is over 3 years old since your last payment dont pay one thin dime because it will just reage your account.

Answer 5

It will show paid. It will not appear on your credit as any further points. It will stay on your credit report for ten years not seven. No you do not receive any points in return. You need to establish another account and keep it active and paid on time for one year. Then you will receive points on your credit report. Remember that there are three agencys reporting and two of them are brutal about removing negatives off of your report.

Answer 6

Gain points for good behavior and lose points for bad behavior. Maybe you could ask the question of how many points are we talking about. Check my profile for a neat investment idea.