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@rhall2009 wrote:
Hi I was wondering how does an open collection affect a closed collection when It comes to your credit score and profile. I've disputed the accounts to only get verified. How can it be listed as a collection and paid but yet stay open?
Am a little confused: under FICO 8 and earlier, paid (closed) and open collections affect scores identically; FICO 9 that changes but we're not there yet. The problem is the act of paying a collection can reset the activity date, and make it look "new" to the algorithm. Which sucks and should be fixed but I digress. A paid collection is always better for an underwriter than an open one.
If there's a tradeline which you paid and is still listed with an open collection, would you mind posting the explicit reporting of it here and someone may be able to shed some light on it?
If the collection is paid and payment is considered to have satisfied the debt, that terminates any further collection autority, and requires the collection to then be closed.
Unless a very special circumstance, it is most likely a simply failure to have updated the status to closed.
Is the word Open in the account type? If so it is not referring to wether or not the accout is open or closed. The account type open is another account type like installlent and revolving. The open account type can be used inreference to charge cards like AMEX where the balance is due in full each month. The account type open is refers to a single payment account IE balance due in full.