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Paying off Collections Accounts Does Not Increase Your Credit Score

By Jonna Catenaccio

Services for Real Estate Pros with RMCN Credit Services Repair My Credit Now

February 21, 2008 04:34 AM

Paying off collection accounts, or other derogatory items will not remove them from your credit report. The fact that this event occurred is predictive, in addition to any dollar amount associated with the past due.

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Colton Daines

Sage Financial Services, Inc. - Menlo Park, CA

True Jonna. In my opinion credit reports hold too much weight by the lenders. What do you think?

Feb 21, 2008 06:06 AM

Jonna Catenaccio

RMCN Credit Services Repair My Credit Now - McKinney, TX

I think that you have made the effort to pay it off it should have a positive impact on you credit. I should also be updated in timely manner, however once it is paid no one really cares they just want it on your credit to begin with and when they get the money the move on. The collections company's don't report to the bureaus as often as they should. I have a client that had a collection put on there and 06 and they have updated it sense. Personally that is poor business ethics.

Feb 21, 2008 06:14 AM

Ryan Vivo

Gateway Realty - Fairfield, CA

NRBA Realtor Solano County, Gateway Realty 707-384-5894

Paying off collections accounts can bring down your credit score because you are making the old collection account into a recent action.

Feb 21, 2008 04:54 PM