Paid Colection items

[Anonymous]

I am trying to clean up my credit and had some medical bills in collections, paid all 5 of them how that effect my Fico score, what type of increase 10 points 20 points etc?  Thank you

[Anonymous]

Unless you PFD (paid for delete), you are probably going to see a major drop in scores, how much of a drop depends on how old the collections were and how often they were being updated.

Unfortunately, by paying these collections, the accounts are updated to show last activity So, if they had last been updated 2 years ago, they would have had less effect on your score than they will now with the recent activity (paying them off).

Eventually these will age again and your  scores will recover and your report will definitely look better on any manual review...but I'm pretty sure you'll take a major drop in scores.

I should say that I had an old collection account that was being reported (updated) monthly. I suffered no drop in scores by paying this account as it did not effect the reporting date.

[Anonymous]

I paid directly to an OC a few weeks ago and the collections account reporting for the OC shows status of "Paid" and $0 balance. There was no change in my score. I was told it will be deleted eventually.

Message Edited by ficonewbie01 on 06-29-2009 02:09 PM

[Anonymous]

Unfortunately, paid and unpaid collections are looked at in the same negative way by FICO. 

They will be deleted 7 - 7 1/2 years from the DOFD.

[Anonymous]

I was not so good of an ambassador of my credit but now mending my ways, I have paid the few debts I had with a remaining of three collection items which, I am reaching out to and attorney to help me resolve them, one the original balance for a credit card was $250.00 now $788 bad debt, the other is a judgment for $288 dollars and an old ATT bill for 160.00, my score is 529, any idea on how I can get my score any higher and how long will it take to see positive results.  Thanks

[llecs]

Start here-

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted.

and What Steps Do I Take - great for learning the repair process.

[Anonymous]

Thank you very much very helpful!  Rodman