Collection Item

[Anonymous]

I have an outstanding collection item that I would like to pay off in full.  How will that affect my credit score?  Would it be better to negotiate a repayment plan?  Which scenario would raise my credit score more?

The debt is in my name only.  I live in GA.   It was a Discover card I opened in college 1993. It was charged off in 2002.  Sold to Midland.  I was paying on it for a while then I would stop and start again.  The debt is $1270. 

[Anonymous]

FICO won't give you a bit of credit for paying a CO/collection. Lenders who do manual reviews may consider a paid chargeoff to be better than unpaid.

[Anonymous]

Is there a difference in when a collection record falls off your score depending if you pay it or not?  E.g. does the 7 year rule apply to the date it was paid or the date it was reported?  My boyfriend has a 5 year old collection (only TU) record for only $20 for something he thought he paid (no proof). 

Secondly, can the collection agencies "change" the initial reporting date for a record?  For example, if you do not pay a collection agency, can they just keep re-reporting it so that it never falls off your credit report?

[Anonymous]

The fall off date does not change.
7 years from (DOFD) Date of First Delinquency.

The SOL for when/if they can sue you changes when you make a payment.