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Paid collection - how is it reported?

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AshCas
Regular Contributor

Paid collection - how is it reported?

I just paid off an old collection account. I know a paid collection and an unpaid collection are the same when it comes to FICO scoring. But right now I know the collection is considered a negative trade line. When they report that it has been paid in full with a $0 balance, will it no longer be considered negative?
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pizzadude
Credit Mentor

Re: Paid collection - how is it reported?


@AshCas wrote:
I just paid off an old collection account. I know a paid collection and an unpaid collection are the same when it comes to FICO scoring. But right now I know the collection is considered a negative trade line. When they report that it has been paid in full with a $0 balance, will it no longer be considered negative?


A collection is a negative account whether it is paid or unpaid, so unfortunately you won't get any FICO boost from having it marked as paid.    Your best option to help your FICO score would be to get the collection deleted.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
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