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When a debt collector reports an update to the CRA that a collection remains unpaid, it effectively makes of record the fact that the period of delinquency on the debt that has expired since the date of first delinquency has increased.
Similar to a creditor reporting that the period of delinquency on your account with them has increased from, for example, 60 days late to 90 days late, updated reporting of an unpaid collection affects scoring of the collection as having a longer period of delinquency.
Paying the collection wont have immediate score improvement impact, but will prevent the continued updated reporting that can be done until the collection ultimately reaches its exclusion date at approx 7 years from the DOFD.
The paid collection can then begin to age in its scoring impact, as any updated reporting after the debt is paid will no longer show a current delinquency status, but rather will show paid, $0 balance.
@RobertEG wrote:When a debt collector reports an update to the CRA that a collection remains unpaid, it effectively makes of record the fact that the period of delinquency on the debt that has expired since the date of first delinquency has increased.
Similar to a creditor reporting that the period of delinquency on your account with them has increased from, for example, 60 days late to 90 days late, updated reporting of an unpaid collection affects scoring of the collection as having a longer period of delinquency.
Paying the collection wont have immediate score improvement impact, but will prevent the continued updated reporting that can be done until the collection ultimately reaches its exclusion date at approx 7 years from the DOFD.
The paid collection can then begin to age in its scoring impact, as any updated reporting after the debt is paid will no longer show a current delinquency status, but rather will show paid, $0 balance.
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