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This is from ;-) The presence of a collection is a powerful predictor of future payment risk. If this is valid, paying off the collection will not remove it from your credit report. The fact that it occurred is still predictive of future payment risk and will be considered by your FICO score. However, as this item ages and falls off of your credit report, its impact on your score will gradually decrease. Most collections stay on your report for no more than seven years. Most changes to a collection, such as a change to the collection's company, account number, balance, or status, have No Effect on the FICO score. A FICO score could be affected if the "Date Assigned" for the collection is revised. The more recent the "Date Assigned," the greater the negative effect the collection has on the FICO score. ______________________________________________________________ & Just *imho* I do not recommend Not paying it only because it will not raise your Fico. Because I would think the fact that it shows up as Paid (or making payments) would have at least some impact on a creditors view of you as how high of a risk you are or not.

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โˆ™ 2007-04-28 12:37:59
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Q: If you pay collection account debts now that are 3-4 years old will that improve your FICO score?
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Related questions

How much will removal of incorrect collection account increase fico score?

How much will removal of incorrect collection account increase fico score?

How do collection accounts affect your credit score?

== == Collection account are 20% of the total credit score module.

Is it true a collection of less than fifty dollars will effect your credit score dramatically even if this was the only collection?

The amount of a collection account is not what impacts a consumer's credit score. The impact comes from when the account is updated/last reported on the bureaus. The reason is that 35% of the score is factored from "History", meaning what has taken place in the past. (In the simplest terms, your credit report is a history of how you have managed debts in the past.) There is specific emphasis on items dated in the last 12 months. So, any derogatory item (even an old collection account) that is updated to within the past year will have a huge affect on your score. It also does not matter whether a collection account is paid. A paid or settled derogatory item is still a derogatory and will cause deductions to your score for the 7 years it is allowed by law to appear on your credit. If the account does not get updated, its' impact will lessen as it ages. If, on the other hand, the collection agency keeps it updated, it can impact your credit score for a full 7 years.

When a collection account is deleted from your credit report does it initially lower your score?

When I had a collection deleted from my credit it made my score go up. It will take several weeks.

Will paying a collection account improve your credit?

It will, as long as the collection's date of last activity is within the last 6 months. Paying a collection resets the date of last activity and may wind up hurting your credit score. It is better to have an old collection with a balance than a new collection without a balance.

Does consolidating debt loan help improve your credit score?

A debt consolidation does absolutely nothing to improve your credit score. Consolidating debt causes you to simply borrow more money to pay off old debts.

Credit score of 840 How to imrove it if there are no credit card debts no outstanding loans or mortgages all bills have been paid on time?

time---accounts improve your score for up to 40 years with the same account open----the highest is 850 so not much room for improvement there.

Will having an American Express Gold card improve credit score ratings?

No. The only way to improve a credit score is by paying contracts (debts) as agreed, keeping the credit to debt to income ratio at acceptable levels, and so forth.

If an unpaid account on your credit report is paid does that improve your score?

Not by much. It's more important to your score to pay it in a timely manner.

How does a collection affect your credit score?

A collection can drop your score dramatically and may make it impossible to get a new loan. It is important to take care of the collection account since it will be removed from your credit report seven years after it is paid, but can stay on indefinitely if not.

How many points does your credit score drop after a collection?

While there's no definitive answer with respect to how many points your credit score may drop after a collection, a collection account is a clear indication that a loan, credit card or retail card was not repaid and payment history is one major contributing factor to your credit score. This can have a negative impact on your credit score.

How will settling credit card debt affect your credit score?

It will raise your score slightly. If you don't settle a delinquent account, the verbage on your credit report may read: "collection account", or "unpaid collection account". However, if you settle, the report may read "settled". By settling with the debt collector, you have made an attempt to fulfill your financial obligation. Therefore, your score will raise slightly.

Does paying off old bills improve your credit score?

it does not actually improve the score but if they are already turned over to the collection agency - it will just make credit score get worse and worse. the only way to improve score is by paying everything off ON TIME and letting time take it's course. Most bad stuff will drop off within 10 years

Does having a checking account improve your credit score?

No, a checking account is not correlated to your credit score. The only reason why you have to give your social security # is to prove that you have no outstanding debt with any other banks. ______________________________________ Actually, there is a correlation. Having a checking account doesn't improve your credit score, but you can be accepted or denied an account based on it. If you have bad credit, or no credit, you may be denied from a variety of bank checking accounts. I was told by my lawyer it does improve your credit if you keep your checking account in good standings he said the bank report it monthly to the crdit bureaus thats just what i was told

How many points can one expect to be taken off of their score for a collection account that was charged off?

It varies, but can be a lot.

How can you improve your credit score 20 points when you have just old medical bills to pay and will this help?

You have to have a open active account in order to get a credit score increase.

What can you do to help make your credit score strong?

The best pay to improve your credit score is to use your credit card (reasonably), and make your payments every time, on time. Paying for debts such as a loan, car payment, mortgage, and so forth will also improve your credit score. In most cases, the score goes up one point for every on-time payment.

Will paying a collection agency improve your overall credit rating?

Yes, because by doing that you are converting a Negative on your credit history to a Positive action. Those who look at a credit report are looking to see if you are making efforts to "turn things around." Paying a collection does NOT improve your credit and may, under certain circumstances, cause even more deductions to your credit score. This is one of the fallacies about credit. The factor that causes the largest amount of deductions to scores is when a derogatory account was last reported to the bureaus, not the amount owed or the status (paid or unpaid). A paid collection account can be just as damaging as an unpaid collection. The first answer was incorrect. The only thing that will improve your credit rating is to have the collection removed from your credit report. Offer to pay the collection in exchange for a deletion.

How do you improve your score per minute on TDM in Black Ops?

You improve your score

What should your boyfriend do to improve his credit score if he had a few collection agency debts plus a bunch of small delinquenies from order and utilities from years back?

PAY IT. Pay it all off and keep the receipts! If you can't afford to pay then negotiate and most debt collectors will settle for less if you have the money.

If you received a collection notice and the company stated they reported your account to the credit bureau on Monday if you pay it this week since it is the same week will your score remain the same?

If they reported your account to the credit bureau, your score will decrease whether you paid it or not.

If a collection agency is after a small amount of debt and you pay that amount in full how will this payment improve your credit score?

It can improve your credit score a little, but to make the best improvement possible contact them and negotiate to have them remove their listing on your credit reports completely in exchange for your payment in full. This will help your credit FICO score the most.

How much does a single collection account affect your credit score?

a account where it is only yours and nobody elses only u can take out money from that account a account where it is only yours and nobody elses only u can take out money from that account

Scores Credit: How To Improve Your Beacon Score With Ease?

Scores credit is a very serious subject that should not be taken lightly. It is virtually impossible to get exceptional terms on loans if you have a low credit score. This is the primary reason why one should take measures that will help them maintain or improve their credit score. Settling old debts with creditors is a simple way of removing negative information from your credit file. Many creditors will be open to wiping out your debts by settling for nearly half of the original amount owed. Settling old debts can increase scores credit within a matter of weeks.

What is your credit score after filing chapter 7?

There is no set credit score that everyone is assigned after filing bankruptcy. How much your credit score drops depends on a lot of factors, including how many debts you discharged, what your score was before you filed, how many secured debts you reaffirmed, and what type of debts were discharged. Hope this helps!