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tulu
Posts: 1
Registered: ‎10-20-2012
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How long does it take for companies to report the payoff?

I have a 580 score currently. I have SO much good credit...but I have a handfull (maybe 5 or so things) small, stupid stuff (electric company, ATT Uverse, Banfield pet hospital, care credit...nothing serious and no student loans/ judgements etc.) ...totalling about $3500 in collections. I am going to pay it all off probably over a 2-3 month period. Any ideas how long it will take to get my score up? I have heard just because you pay off a debt doesn't mean it shows up right away...? Thanks to any guidance you guys can offer!

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Elcid89
Posts: 567
Registered: ‎10-04-2012
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Re: How long does it take for companies to report the payoff?


tulu wrote:

I have a 580 score currently. I have SO much good credit...but I have a handfull (maybe 5 or so things) small, stupid stuff (electric company, ATT Uverse, Banfield pet hospital, care credit...nothing serious and no student loans/ judgements etc.) ...totalling about $3500 in collections. I am going to pay it all off probably over a 2-3 month period. Any ideas how long it will take to get my score up? I have heard just because you pay off a debt doesn't mean it shows up right away...? Thanks to any guidance you guys can offer!


Most reporters update monthly, so somewhere inside a 30 day window from the date of payment.

 

Bear in mind that the payments won't make the reported collections go away / drop off of your report unless you have some sort of PFD arrangement with the reporter and the reporter actually honors it. Otherwise, the reported items remain and continue to harm your score.

 

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LIGHTNIN
Posts: 4,064
Registered: ‎03-24-2008
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Re: How long does it take for companies to report the payoff?

HI and Welcome to the forums,


 Some things about collections......an unpaid CA is scored the same as a Paid collection.FICO sees a collection as a collection.

 Recent collections can hurt a FICO by 80-100pts in the beginning,then they tend to hurt less and less as time going on.
 I would suggest working on the most recent CA first, because they are the ones hurting your CS the most.

The OC and a CA can both report on the same debt.When a OC reports a past due debt, it dings your CS(credit score).
Then if a CA reports on the same debt, it ding your CS even more.

Debts are either assigned to a CA or sold.If assigned the OC still owns the debt.
If sold, the OC changes the balance to $0 and the CA is the one you have to deal with.

 

Study the Common Abbreviations  or make a copy to put next to your computer, so you'll know the way we talk around here.

Suggest reading the  The Son Of Credit Scoring 101. and What Steps Do I Take?Do I DV?PFD?

 

Oh and 2 very important dates to know........the DoFD ( date of first default) on each account.

Second date is your states SOL (statute of limitations), or just tell us what state you live in.


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