How does a collection really affect your credit score

[Anonymous]

My question is this.  When a collection is placed on your account, it impacts  your credit score dramatically at that point.  If you pay the collection to a zero balance, does that improve your score.  Also, if the collection account is removed does this increase my credit score

[MidnightVoice]

Not really - crazy but apparently true

Yes, considerably, but the older it is the less it improves the score.

[Boswd]

If you pay the collection it does not increase your score.   FICO and the FAKO's don't reward payment on co's and collection.   If it is removed from your credit report then yes it will bring up score.

But a paid collection does stop the bleeding if they report each month and with time it has less effect on your score.   Also a paid collection looks better when applying for a loan and other lines of credit than an unpaid.