Paying Off Collection Agency Debt Reported to Credit Bureaus

[oceanic]

I have a collection account that was reported to credit bureaus about one year ago.  I am now able to pay it off.  I have a few questions:

1. Will it help my credit score?

2. If so, by about how much?

3. The collection agency said for a fee of $70 it will have the delinquency totally eliminated from my credit report, as if it never existed.  Does this sound legitimate?  If so, how much will this help my credit score?

Thanks and happy New Year!

[09Lexie]

posted a response to you in this thread

http://ficoforums.myfico.com/t5/General-Credit-Topics/Removing-Paid-collection-from-CR/td-p/2674121

[RobertEG]

There is mothing illegal in deleting prior reporting, so if you pay the fee, you have a contract.

The additional fee would, in fact,  make any contract more enforceable should they not follow through.

No peril on your part.

As an aside, I find such a practice a bit on the humorous side.

I would bet dollors to donuts that in the past they have told consumers who have requested a PFD that they are prohibitied from such a practice.

It is certainly a questionalble practice in view of their credit reporting agreement with the CRAs, which instructs furnishers not to delete based on payment of a debt.

It appears that $ means more to them than any ethical issues.  Surprise, surprise!

But that is their potential issue with the CRAs, and I would not let it affect my payment for deletion.