The only thing that I am SURE of is that some collection companies will put a mark every month on your credit report saying the debt is still there and that you still owe it. If you pay this, those marks will stop and it will show paid and your score should go up. Now, if someone marked you with a collection in say, October 2005, and they have not hit it every month than yes, it is rumored that when you pay it, it will show as a paid collection active as of May 2007 and may hurt your score but I have heard that it will show paid in May of 2007 but won't lower your score as showing a recent collection. Hard to explain. Which I could use a chart of some type :-/ And my experiences with credit cards is that they commonly report to the bureaus usually about a week after your billing cycle closes. That's what I've experienced on all 3 bureaus..
Starting Score: 475