@shawnprince1989 wrote:
So i got an email saying my credit report has an alert
i paid off verizons settlement an it says it a potentially negative mark.... **bleep**
why is it worse when im payin them back?
as far as the scoring goes (especially with FICO), a paid baddies is just as bad as an unpaid one. When you pay off a collection, it must be updated, unless you have negotiated a PFD. Date of last activity tells the scoring algorithm how recent the baddie is. So when you paid it of, it updated as paid, but it it still a negative account... It just updated it as this happened recently...
so why pay off an old debt? For starters, you wont have to worry about it, or being sued. Second, it'll help you on a manual review if you ever have to recon something.
