paying a collection account in full--question...

[Anonymous]

So Ive paid off a medical bill. The only open collection I had on my CR. From experience would this increase my CS or would it still have that impact because it was recent? I know in time the impact would be less but just wondering those who have had similar what your experiences were.

[RobertEG]

Paying does not negate the fact of the collection, which remains as a major derog.

Paying ceases updated reporting showing that the debt remains unpaid, which then permits the effect of the collection to age.

[Anonymous]

So pretty much suck it up and wait 7 years...

[Revelate]

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@Anonymous wrote:
So pretty much suck it up and wait 7 years...

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FICO 9 discounts paid collections; as does VS 3.0 (not that widely used); likely won't have to suck it up for 7 years as I would expect non-trivial adoption of FICO 9 for credit cards at least within another 3; however, mortgages are still on the old standard and yeah, stuck unless you can get it off though.

Google HIPAA method.

Paid vs. unpaid does make a difference to UW at least.

[Anonymous]

And it's 7 years since it last reported correct?

[gdale6]

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@Anonymous wrote:
And it's 7 years since it last reported correct?

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No, a derog account reports a max of 7.5 years from the OCs DoFD. The CRAs will typically schedule removal at the 7 yr mark so they are sure to remain within the law. For a paid collection you would want to begin a GW letter campaign asking for removal of the whole TL from your CR.

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/GW-letter-Q-amp-A-Examples-and-GW-Success-Stories/td-p/1573680