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I just received an alert from myFICO and it was concerning collection. Below is the way it reads. My question is what is the difference in a paid collection and a collection account. myFICO states that this was an improvement.
Previously reported | Newly reported | |
Balance: | $0 | |
Past due: | $0 | $0 |
Status: | At least 120 days or more than four payments past due | At least 120 days or more than four payments past due |
Last activity: | 7/1/2009 | 7/1/2009 |
Description: | Paid collection | Collection account |
If the other one was reporting a balance, it now shows paid. And no, it is not an improvement in score but you no longer owe a debt.
Previous reported should be over one block as well as Newly reported. The balances remained the same and the score didn't increase, but the standing did. The way it is worded in the description paid collection to collection account has me puzzled. Thanks for the info though.
Correct. They are just saying it went from a collection account, which would be unpaid, to a paid collection account. Neither help your score, one looks better.