Will paying off a collection account effect my credit score?
540123
Yes, but it will take a very long time before there is an effect.  You might want to look up Credit experts:\nDonna Fox and Stephen Snyder. Remember ALL of your collection accounts together must ALL Be paid off before there will ever be a change in the credit score.\nLiens must not be on the credit record as well as\nJudgments, which do the most damage as well as Chapter 7 Bankruptcy.  Bradley Ross Law in Indiana is a very good\nlaw firm that specializes in repairing credit and has been\nendorsed by Stephen Snyder in his Credit After Bankruptcy\nseminars in the past!
3552
They dont.Even if you pay off the balance owed its still in the credit report for 7 yrs.The best thing to do is try to make arrangements with the creditors owed and set up a payment plan.This will reflect in your credit report helping to atleast raise your score back up.Becareful not to miss or forget to make a payment when you agree to make payments this will show that you are unable to commit to payment plans in the report.It will take up to 6 months reflecting your payment history to Equifax, and theres 2 more that i cant remember.
1144315
Your score will dip no matter what you do. For how long depends on how you deal with cleaning up you credit.\n\nIf you pay the accounts without using a pay for delete agreement, they will just notate your reports as paid collections. Which will be just as bad as having the collection on your reports.\n\nIf you use a pay for delete agreement, when they delete the account your score will dip from losing the history of the account. But you scores will probably rebound sooner than having a paid collection. \n\nIf you are dealing with collection agency's, you should send a debt validation first. When they properly validate the debt (and you are still in SOL) send them a pay for delete letter. \n\nInclude in that letter that they will not only delete the tradeline they have placed on your reports, but they will also not sell the debt, sell the remainder of the debt (if you request to only pay a percentage of it - which you should request) and will not continue to collect the debt. (collection agency's have been known to do all of those - even when the debt is paid.) \n\nIf the debt is out of the statute of limitations (SOL) for your state, you have the right to "not pay" it. After you send the debt validation letter and you know it is out of SOL, you have the right to send them a SOL letter. And, if they are reporting incorrectly on your reports (which they probably are) you have the right to dispute the account with the credit bureaus. Requesting that the accounts are either corrected, or if not, deleted.\n\nI would also suggest trying to get a secured card or two. If you do that now, you would have a years history on it/them which will help you when you want to get that loan.  \n\nOnly use the cards occasionally for small amounts, a tank of gas etc. and pay in full when you get the statement. Then, keep the cards in your sock drawer for about 6 months before you use them for another small amount.\n\nYou might check out Orchard Bank, HSBC or Bank of America for secured cards.\n\nYou might also want to check out the link I have provided. Learn how to deal with your baddies and how to up your scores.
913330
Your credit can change minute by minute.  It all depends on when companies that you have accounts with report to the bureaus.  When the companies report, it changes not only your payment status, but outstanding balance in comparison to high credit limit, # of months reported, and how long the account has been opened,etc and all these will affect your credit score.\n\nAlso not all companies report monthly when you are in good standing, they may report less often, so that good history my not show as soon as payments are made.
237495
First, this is to progunr.  Please point out where in the law you are referring to.  Your information is wrong.\n\nLets get one fact straight.  The credit reporting bureau reports what creditors/collection agents tell them.  If it's not accurate, it will be removed.\n\nIf the creditor tells them to remove or change an item, they will do it.  Do not believe any other crap they tell you, it's not true.  \n\nThe credit bureau will not remove any item that is true (ie, verified with the creditor).  That means that if you send the credit bureau a complaint, the bureau will contact the creditor and "verify" that the report is accurate.  If they say it's accurate, then the report will stay.  But you can place a comment in your report disputing it.  \n\nThe credit bureau does NOT investigate whether the information is actually accurate.  They only report what is told to them.\n\nTherefore, if the creditor tells the bureau that the report is not accurate, and that it should either be removed or verified, they will do it.  \n\nThe only other way to get the report changed or removed involved a lengthy process of letter writing, validation, complaints, threats, and sometimes a call from an attorney.  \n\nThat is why it's so very, VERY, important to get IN WRITING an agreement with the creditor to remove the listing once the bill is paid.  After they get the money you no longer have any leverage with them.\n\nNow...as to your question about makign them make a deal with you....\n\nWhy are you even messing with a collection agent?  Unless that agent purchased your debt outright, you have no legal obligatin to even talk to them.  So contact the original creditor and see if they want to deal with you.\n\nIf not, what is the point of paying them?  Your credit will still be ruined.  Tell them to take you to court.   If the debt is small (under $500) they probably won't go through the time and expense.  \n\nMy battle cry!  You are about to go to war!  Do not fight these guys unarmed!  Knowledge of the law is your only weapon!  Read the links below, it will show you exactly what you need to do when dealing with these guys.\n\nContact me if you need any further advice or support.
695909
If it's been 10 years since you made any payments, wait another 6 months and the charged off account will be off your credit report and won't matter anymore.  Some of them may have fallen off after 7 years anyway.
702044
No. It's just a credit inquiry. But, if there are more than 2 credit inquiries, then it can affect your score.
13694
I'm assuming that you are talking about an old debt that you never paid and is now in collections.  The best option is to contact the collection agency and tell them you want to work out an arrangement to pay a portion of the balance.  Make sure you get them to agree to this in writing before you make a payment to them.  After you pay the settlement amount your credit report will reflect the account as a paid settlement, which will let future creditors know that you didn't pay the full balance but at least made an effort to pay a portion of the amount you originally owed.
248176
You could be.  You're credit rating will be screwed.. a lot of bad things will happen to you. How about paying them off?
451345
The problem with simply paying off the debt does not remove the negative report from your credit history.  They may show the debt paid, but it will still reflect late payments, or that it went to collections.\n\nIf you choose to go this route, be sure to get IN WRITING a letter stating that they will remove this debt from your history BEFORE you pay a dime to them!  \n\nHere is a better suggestion.\n\nSend the creditor a demand to VALIDATE your debt.  That means they must send you copies of you contract, bills, receipts, and anything that can prove you have a legal obligation to pay this debt.  \n\nIf they do not respond back in 30 days, send a copy of this letter to the credit reporting agency, along with a demand to remove the entry due to lack of validation.  They must remove the entry or risk a lawsuit for violation of the Fair Credit Reporting Act.\n\nBe sure to send all letters by certified mail, so you have proof they were sent and received.  Otherwise you have no proof to show the judge if you go to court.\n\n\nMany of these magazine companies don't even keep your contracts on file, and it will be impossible for them to prove your debt.  Rather then spend a lot of manpower searching for these records, they will simply opt to remove the listing.
498013
While it will negatively affect your credit it is better than having a charge off or a bankruptcy.  One thing you can do is to pay extra, so that you get out of the program faster.  Once you have completed the payment plan, you should use a credit card with a good history once a month and pay the balance off.  This will show a good use of credit.
692184
paying bills early has no effect on your credit score the best rating you get on that transaction is "paid as agreed".\nYou can maintain a good or better than average credit score by living in the same place for an extended time and being on the same job for an extended time while maintaining some open credit accounts and keeping them "paid as agreed".
179729
Some Info:\n\nWhen an account is placed with a collection agency, they report it to you credit (yes, I know, you know that) but when you pay that account it doesn't come off you credit report. It simply gets marked as paid. it also shows how long it took for you to pay the account. \n\nOther factors also include the number of accounts, the frequency bad debts are reported to credit (i.e. how often you have a debt go to a collection agency)\n\nThese all factor in to how much your credit rating will decrease overall. A collection account on you record isn't good. But  haveing only one that is paid quickly will look much better than several or one unpaid. Most often times if someone looks at your report and you have 1 collection on there that was paid within 45 days of reporting, They will let it slide and it won't affect things very much They figure it was a miss communication. One account pd isnt that bad and so long its pd quickly and there is only one you will see very little change in you credit score longterm.
978354
Your credit score won't be affected unless you make late payments.  You're okay.\n\nGood Luck!
622345
Joieanew, please tell the whole truth!\n\nIf you pay your bills, you have to hope that the creditor will do something about your negative credit report he placed.\n\nJust placing "Paid in Full" does NOT remove any additional bad marks, such as that it was in collections, or that there were late payments.\n\nTherefore, unless the item is completely deleted, or the entire status is changed to "Paid As Agree, Never Late", you will still have bad marks on your record, and it will still keep your credit score low.\n\nThat is why, if you plan to pay off your debt, make the creditor agree IN WRITING to remove any negative report from your record.  Yes, they can do it.  Yes, it's totally legal.
112859
If you have satisfied the debt and it's showing a $0 balance, that is not an inaccuracy.\n\nIt also does not bring down your score unless your payment history for that account show slow pays beyond 30, 60 and 90 days.  Additionally, it also brings down your score even if you paid down the account if the payment was received in response to a collection or a chargeoff.\n\nAlso, the reporting of a credit account does not, by itself, bring down your credit score.  Other factors come into play such as\n\n1) How old your credit history is.  \n2) What types of credit you have/had: revolving (credit cards, etc), installment (car loans typically), real estate (mortgages).\n3) Your repayment history and whether your accounts are paid as agreed or whether there have been slow pays\n4) Whether there have been garnishments, collections, liens, bankruptcies\n5) How many inquiries have been made in the past few months (i.e. have you been applying for loans all over town or trying to get credit cards)\n\nUnfortunately, I think you're out of luck on this one.  \n\nUnless you have grounds to have those accounts removed (e.g. that wasn't your account, the payment history is inaccurate), they will continue to be reported for about 5-7 years.  \n\nThe reason for this is that, before approving your credit application, creditors want to know how well you repay credit lines and loans in the past, not just the accounts with open balances.  They also want to know if you're carrying too much debt.
190511
Yes, just becauseit's charged off does not relieve you of the debt.  It just means they have quit trying to collect (for now).\n\nThey can either sell the debt to a collection agency or use their own in-house agency.  \n\nEither way, the debt will be reported to the credit agencies and it will be on your reports for several years.\n\nIf you wish to repay it....VERY IMPORTANT!\n\nSend them a letter telling them that in exchange for paying the debt, they must remove all negative reports from your credit history.  Otherwise, you will still have bad credit, even after it's paid.\n\nUse the sample letter below as a guide.