Paying off All Old Collection Accounts

[bpohl93]

Hi, I've been lurking here for a few months and finally decided to post today. I am asking this question because, two years ago, I used to have 11 accounts in collections. As of today, there is only one left. After reading through here, I realize that I did not follow all of the proper steps to settle these accounts. They will all remain on my report for some time to come.

My question is whether or not I can expect my score to go up at this point, as long as my mortgage and car payment stays current. It seems like it might, since there is no new delenquency reporting and the only thing reporting will be positive from now on.

[RobertEG]

Positive payment hstory reportings dont add to your score.  FICO does not add points for being good.

Periods of timely payment add to the age of the derogs, thus slowly reducing their impact.

Periods of time also add to the aging of the length of credit history.

[llecs]

OP, congrats on paying down the debt!

If you have any collection agencies (CAs) reporting as paid, you'd want those off. Whether you owe $0 or $10,000 still, the score damage is equal. If you have any paid CAs, send a GW letter and ask them to delete and you'll see a score boost. I'm sure they'll delete.

If you have any charge-offs (COs), then the same applies as above. It doesn't matter the balance, the impact on the score is the same. However, CO OC accounts still factor into your length of history and that helps your scores in the long-run. Don't be so eager to get these removed, but I would probably tackle the youngest of them and ask them to delete or to remove any lates or comments like "paid charge off" or "settled".

[Anonymous]

But you u pretty much need to pay the full amount to get the OC to make such adjustments id asume. anyone have luck with NFCU?