Paid Derogatory

[Anonymous]

Is a paid derogatory status better (score-wise) than a collection/chargeoff status? 

I belive it is morally right to pay back all debts, but wonder what effect, if any, paying off a closed account will have on my score? I am assuming the CO will not do a PFD.   

[Anonymous]

A paid baddie is the same as an unpaid one score wise.

[Anonymous]

And if you pay it....i think it resets the 7 years it stays on your report

[Anonymous]

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@Anonymous wrote:

And if you pay it....i think it resets the 7 years it stays on your report

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Incorrect. If you made a payment it would only reset the SOL allowing the creditor to sue (if you didn't PIF). The DOFD is what determines when the TL falls off your report.

[Anonymous]

Ok so you can pay the Collection account at year 6 and it will still fall off at year 7?

[Anonymous]

Yes. You could pay it 3 years after it falls off and it will not go back on.

[Anonymous]

i tried searching for DOFD whats does that stand for? On my experian report they say date of status is that the day the 7 yrs starts?

[Anonymous]

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@Anonymous wrote:

i tried searching for DOFD whats does that stand for? On my experian report they say date of status is that the day the 7 yrs starts?

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Try reading this. It should clear things up for you.

http://ficoforums.myfico.com/fico/board/message?board.id=generalcredit&thread.id=8713

Message Edited by bamf70 on 09-06-2007 09:25 AM

[Anonymous]

so why is it considered bad to pay a collection thats say 3 yrs old?

[Anonymous]

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@Anonymous wrote:

so why is it considered bad to pay a collection thats say 3 yrs old?

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You are spending your money on something that will not raise your score. Most people here who get that advice have multiple baddies and could see a bigger "bang for their $" doing a PFD with another one of their creditors. Paying a debt you legally owe is never bad, it just won't help your FICO unless it is removed from your report.