The way I see it, you have these options:
1) Dispute it at the CRA website(s). Say that the balance is being erroneously reported as more than $0, when it was actually settled.
2) Call and/or send letters to the creditor, asking them to revise the record to reflect the account being settled.
3) Wait until December for the problem to resolve itself.
Honestly, I wouldn't expect your score to change much (if at all) by having the record corrected. The creditor is very likely NOT reporting the account as unpaid every month, since you paid it off. And a paid collection is not really that much better than an unpaid one.
The biggest change to your score will occur when the aount gets removed in December. You might be able to speed up that process by either calling the CRA to ask them to remove it earlier, or calling the colleciton agency to ask for a goodwill removal of the account. Worst case scenario, even if you don't get any of those things, you'll still be in great shape in December when it falls off your report on its own.
Thank you Corey.
The account does show closed, just with a balance
Is there zero benefit in paying the ~$300?
Honestly it probably won't change your score much when it changes to $0 from $300. But it couldn't hurt to poke the creditors and/or CRA's to have them revise it, you might get a small bump in your score.
There is unlikely to be any bump and in fact if they fix it, FICO may treat it as a new delinquency and drop your score all over again. Since it’s coming off in December anyway, I wouldn’t dispute it.
Don't dispute it. You settled for less than owed, so the collection agency has agreed to not pursue any legal action at any time in the future. Keep your $300. TU might do an early exclusion 6 mos prior to it aging off, the other two will probably wait till December. If this is your only derog account on your file, your score will bounce a good deal when it is removed and file will be clean.
If the balance is from a collection,the balance will not affect your Fico score weather it is paid or not.If any account is reported as "settled for less than originally agreed" that is considered a serious derogatory and will affect your credit score is a serious way for as long as it is present on your cr.