Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
Re: Paying off collection effect on score

Paying a collection agency to $0 has zero impact on your FICO. FICO ignores the balance for all collections and public records. It doesn't matter if you owe $0 or $10k, the impact is equal. The mere reporting of the CA is the damage.

 

Like with CAs, paying a CO relatively has no impact on your FICO. FICO is scoring off the presence of the baddie vs. the balance. However, FICO does score and consider the balance if it is a CC and is factored into CC utilization. Even if charged-off, some CCs still hurt revolving utilization. So, paying a CO'd CC that factors into util can greatly help your FICO scores in some situations.