topic Re: Paid Collection Charge Off - Open or Closed? in Understanding FICO® Scoring

Paid Collection Charge Off - Open or Closed?

rbentley — Tue, 06 Nov 2018 14:01:35 GMT

I have a paid charge off with ERC for a Comcast bill. It was paid directly to Comcast two days after ERC had reported it to the Bureaus. I have tried without success to get it removed. It will age off in 11/2020. It shows as an open account on TU and EQ but closed on EX. My EX scores are slightly higher. My question is should be reported as closed and not just "paid". Will it make any difference to my scores to dispute this item and potentially get it moved to the closed category?

Re: Paid Collection Charge Off - Open or Closed?

Anonymous — Tue, 06 Nov 2018 14:54:46 GMT

My understanding is that closed verses open doesn't matter, but rather if it's on your CR or not. I've always thought that if it's present on you CR, it adversely impacts your score. If someone knows otherwise, definitely correct me on that.

As for whether or not the removal would positively impact your scores, it depends on whether you have other negative items present, how old they are and what their severity is. If this was your lone major negative, it's removal would likely result in a 70-80 point FICO score gain.

Re: Paid Collection Charge Off - Open or Closed?

rbentley — Tue, 06 Nov 2018 15:13:50 GMT

I can't get it removed. I have tried for a Goodwill adjustment / deletion both with ERC and Comcast to no avail. The collection is valid and is prperly marked "paid". My question soly concerns whether it should report as an open or a closed account and whether there is any scoring difference to it being open or closed.

Re: Paid Collection Charge Off - Open or Closed?

gdale6 — Wed, 07 Nov 2018 01:00:02 GMT

As long as balance is 0 it doesnt matter if it says open/closed as all will know its paid off. If you dispute and it updates it will result in a Fico score drop as it will look brand new in Ficos eyes. Leave it alone as closed paid off accounts quit updating on a monthly basis.