Paid collection vs unpaid effect on score?

[Bees18]

I'm working on fixing both my husbands and my credit. He has two unpaid collections that we are working on resolving, but three paid collections that say paid/chargeoff. They are showing up as negatives on his report. Since it's too late to PFD since we paid them already, we are going to try to and goodwill letters.

If this dosnt work, about how much I'll each paid collection be dragging down his score?

They are from 2016 and 2017... so not falling off anytime soon :/

For mine, I have two medical bills I am going to try to PFD, these are my last unpaid collections...with both them gone should I expect a decent increase? I would still have one mark left, which is a settled collection. I've heard when you pay your last collection that you usually get an increase in score, but with still having this paid one hanging around (they won't remove), will that not count then?

Thanks!

[Anonymous]

Are any of the collections for < $99?  If so, FICO 8 ignores them completely, even if you never pay them.

FICO 9 will ignore all paid collections, regardless of size.

The old mortgage models are the least forgiving.

I imagine that FICO 8 and the mortgage models treat collections a bit more leniently than paid ones, but quantifying that may be challenging, because it has hard to test.  Good testing involves creating a situation, pulling the score, changing it, pulling the score, re-establishing the old situation and pulling the score again.  Even if you could do that with collections, nobody would want to.

[Bees18]

Unfortunately no, the three that were settled were around 1,500 300 and 150. Two were paid in full, and one settled. Two have stopped reporting, and one is paid but still reporting every month. Are they able to do that? Report a paid in full every month?

[RobertEG]

When a debt collector reports an update stating that the debt remains unpaid, that is equivalent to a creditor reporting a longer period of delinquency on their OC account, as it effectively extends the delinquency period applied to scoring of the collection.

On the flip side, when a consumer pays the debt, the new status of paid, closed, $0 balance ends the period of delinquency, and thus further damage by any updated reporting of a continued unpaid debt.

When initially paid, the scoring difference is the same, but as time passes, any continued reporting by the debt collector must be that the status is paid, and thus does not add to the delinquency period, and thus continue to increase scoring impact.

The CRA reporting manual instructs debt collectors to cease regular updates after payment of the debt unless the update is required to correct some other inaccuracy or change in information.

However, provded they correctly include the current status as paid, closed, then updated reporting show not further damage scoring.