topic Re: Collection Question in Rebuilding Your Credit

Collection Question

Anonymous — Sat, 21 May 2011 12:24:14 GMT

I had an unpaid collection on my credit report that shows a date assigned of Aug 07. I just paid it this month, will I see a drop in my score because of it being paid in the current year? I know that it won't improve my score because an unpaid hurts as much as a paid collection. I'm just making sure my score won't drop.

Thanks

Re: Collection Question

RobertEG — Sat, 21 May 2011 14:01:59 GMT

FICO does not score the payment of debt. It should make no difference in your scoring.

The debt collector must update the balance on the collection to $0, and close the collection.

So your CR will update to reflect this, which improves its reading, and hopefully its impact, in any manual review.

Re: Collection Question

MarineVietVet — Sat, 21 May 2011 14:04:49 GMT

@Anonymous wrote:
I had an unpaid collection on my credit report that shows a date assigned of Aug 07. I just paid it this month, will I see a drop in my score because of it being paid in the current year? I know that it won't improve my score because an unpaid hurts as much as a paid collection. I'm just making sure my score won't drop.

Thanks

I agree with RobertEG. This shouldn't affect your score. Collections are scored off the date of assignment and not the date of last activity if the CA's and CRA's do their job correctly.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".