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So I was sued twice and I settled with them at half for monthly payments. Unfortunately only paid in full at the end. My question is one will be payments for a year and the other for 2 years. But I plan on eventually paying them off early, anyways. After each payment does my total balance change on my credit report or not until its paid off and then they update? Because my utilization is horrendous on both these.
Technically, they are required under FCRA 623(a)(2) to "promptly" update any reported information as necessary to maintain its current accuracy.
Thus, as you pay, they should be updating in their next regular reporting cycle (usually monthly) as the balance is paid down.
Practically, they may fail to "promptly" update.
You can always call or dispute,
Implied in the post is that the original creditor account is revolving credit, and that the OC is also reporting their account, and thus the revolving balance is continuing to affect scoring of % util of revolving. If only the debt collector is reporting, then collections are not included in your % util scoring.
It is also likely that the debt collector may not notify the creditor each and every month of the updated balance, and thus the OC account may not be updating each month.
If that occurs, then you will likely need to call the debt collector and remind them to notify the creditor monthly of the new balance.
Upon notification by their debt collector, they then have the responsibility to promptly update their reporting.
However, if the debt collector owns the debt, then the OC should already have updated their reporting to show a $0 balance, and thus it will already have become excluded from % util scoring.
Thank you so much. That really helps.