Unfortunately the debt collector in your case is doing exactly what is required of them by law in updating the collection status to paid. And the credit bureaus algorithms see the new reported activity as a fresh collection so it does temporarily affect the score. There is good news in all of this in that when a real human being is reviewing your report in a determination of whether or not to grant credit they will see that you met your obligation of repayment and cleared an account rather than ignoring the past due debt. This does reflect favorably in your behalf.
If you read through the forums, particularly in the Rebuilding Your Credit forum, you will see that the general advice is always to seek a Pay for Delete agreement with a creditor prior to settling a collection. This is an arrangement where they agree to delete the negative reporting from the bureaus in acceptance of payment. It doesn't always work out but it is an important first step.
The collection even though it updated to reflect new activity will still be removed from your reports in the statutory time period based on the date it first went negative. So 7 - 71/2 years from the original default date. The payment does not reset this date.
Starting Score: 500's
I think I have heard Clark Howard say if you have a collection whatever you do is not contact it. If you do they can reset it or re-report it even when it is outside of 7 years. Can that possiblly be correct ?
I.E. if I had something roll off 3 years ago and some company bought the bad debt and contacted me and I talked to them the new company can re-report it even though 7 years has passed. Is that correct ? I don't have any like this but I have had a few roll off years ago so when I get a call I do not know I am cautious as I have worked my butt off to get this FICO up and still can not get it to 800 and I sure don't want to make a stupid mistake. I have 4 years of perfect payments no collections and almost all inquiries are about to roll off after 2 years. I have less then 5% utilization with CL of around 12k total on 4 cards and a paypal Credit account. This has been a lot of work. I even check to make sure my payments are made 10 times before and on the due dates as I know one late will drop me 50-100 points. I just want really good credit again and own a home. Wow if you are young don't be stupid and have to dig out of a mess like this. It's incredible what we do in life and what it takes to get out of it. Those FICO points are like GOLD to me now. If I lose 3 I cry lol.
Starting FICO Score 2007: >> >> 533 -- God those were some Dark Days !! If a debt is over 7 really 10 years old can a collection agency report it ? I have worked my credit back up to 750 range and over 7 mainly 10 -12 years ago had collections that has rolled off in last 5 years. Well today I got a call from a bottom feeder dynamic solutions and he started in after asking if this is **** heck my credit and payment history is to good I am no longer afraid to answer the phone like I was 7 years ago. I have not had a negative on my credit reports in years. Can they report if they have something from 2001 or 02 ? I just hung up as Clark Howard says if you talk to them it can reset the 7 years which has years been past. Thank God. I ever had a code 53 IRS to roll off last month that was there 10 years but they never put it as a lien which was great just kept my return for 10 years. This year first year in 10 years I got my return myself. I think the call was from an old credit card of which all now are bumping into each other to raise my CL. Got 2 this past month. Gosh did I learn my lesson. I check my payments 10 times a month just to make sure. 5 year perfect payment history but still bad when you answer the phone years later and you have a collection agency on the line.
No, they can not restart the CRTP and put this back on your CR. Not legally anyway. Send them a DV, see if they send anything back.
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.
gun I'm scared to even contact them I have worked so hard on my credit. Even capital one raised me up to 3500 on my card this month and US Air 7000. I have such a higher FICO scared anything might knock it back in 500 range where I started after one time having 800 + and losing it. I just want to keep building. I'm up to like 16k in CL with all cards.
You have an old Zombie debt. They can ask you to pay, that's all they can do. They can't place it back on your CRs.
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.
Then I'm going to leave it zombie so it don't come back to haunt me. They put anything on my report even if it is 10 years old it will drop kick 100 points off my FICO. It's way too old to legally put on my report but one night Clark Howard said on his show if you communicate with old debt collectors they can reset it. Not sure if he meant before of after 7 years has past.
I believe you are confusing CRTP with SOL. In some states, if you agree to the debt, it might restart the SOL, or in some, if you put it writing that you will pay the bill. But that's for the collection. The CRTP regards how long it can stay on your CR, they don't reset that.
July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge
Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
June 2017 update: All scores over 820, just pure gardening now.