Understanding FICO® Scoring

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defbright
Posts: 6
Registered: ‎02-01-2013

Paying off collection accounts on credit report

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‎02-01-2013 02:25 PM

I have heard that even if you pay off a collection account, that it does not make a difference in your score. Is this true.

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guiness56
Posts: 13,365
Registered: ‎01-17-2008

Re: Paying off collection accounts on credit report

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‎02-01-2013 09:02 PM

In 99.999% of paying them off it makes no difference.  It is not supposed to.  FICO sees a collection as a collection, it doesn't score for the pay status.

 

In some cases something will not be coded correctly and may change your score.  Not necessarily for the good.

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