As far as score goes, both represent continued showing of a collection, and are scored as such.
The primary difference is the showing to others that the consumer meets their obligated debt.
"Closed" alone does not signify satisfaction of the debt, as it could represent only termination of their assigned collection authority.
Potential creditors will make a determination of the status of the debt when they see a reported collection.
If the collection shows as paid, it informs them that the consumer meets their debt obligation, particularly if the reporting does not additionally show that it was settled for less .
Until paid, the debt continues to represent a total loss to the owner, which is a huge negative in determination of future creditors.
