Let me start off by saying that my FICO scores are EQ 667, TU 633, and EX 717. I have a medical collection that I've fought for the longest to get removed, but the collection agency refuses to negotiate a pay to delete. Beginning last month, I finally just decided to pay it off; today, I noticed something odd. I have three credit cards, a line of credit with Fingerhut, and a car loan, for a total of 5 accounts (4 revolving and 1 installment loan). My average account age is 10 months. This collection account only reports to TU and EX. I noticed today on Experian that my total number of accounts is 6 and my average account age is 16 months; upon closer inspection, it appears that this collection is no longer being reported to Experian as a derogatory item, but rather, as an "other" loan. This coincided with a 68-point increase in my Experian score last week. TransUnion always seems to take a while to update, which would explain why it's still showing on there as a derogatory item. My question is, are collection agencies known to sometimes report collections accounts as installment accounts? Or, did the collection agency make a mistake that happened to go in my favor?
Sorry I have no clue as to the answer to your question. However, I am sure someone in the forum will. Good luck.
Creditors sometime make mistakes like human errors. I would consult with the creditor to see if their was a issue. If you get the run around ,and you believe its an error, you always can dispute it. Typically if someone throws you into collections, it is a third party company that is conducting the debt.
Isn't it nice when something unexpected happens and it's in your favor?
It's possible they just made an out-and-out error, but I would assume that they ended up doing what they said they wouldn't do. Perhaps that was unintentional on their part, but it is still a legitimate response to you paying it off. So I would not call anyone's attention to it. I would figure you paid it, it reflects as paid, and everything is fine.
And here's to hoping it reports the same to TransUnion!