When a collection is removed from your credit report will there be some improvement in the score?

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littlemissmay

When a collection is removed from your credit report will there be some improvement in the score?

Studly

The correct answer here is "yes!"...but remember that they have to DELETE this item from your credit report in order to help you. And you will notice a decent increase immediately.

Just remember that if you pay off the debt, they are only required to show "paid" and "zero balance" on your credit report. But it's still being shown as a derogatory item, and it will still hurt your score (or even make it worse).

Unless you get them to agree IN WRITING to delete the item it's not going to help you out one bit.

DJ Wings

No, not for a total of 7 years because of the your credit history. The only way to improve the score is to keep all the bills paid.
The best thing to do is not to touch the credit alt all after paying all the bills on time.

DAS

Of course, but you won't see it right away. So, just be patient, and you will see it soon. If you continue to get the negatives off, and you have some positive accounts, then you will be moving in the right direction for achieving better credit.

Good luck !!!!!

Poker K

Check out http://www.ineedrates.com

RICHARD

Yes there will be.

Another huge factor is the ratio of available credit to used credit.
For instance a credit card with a limit of 5000 dollars that has a balance of only 200 dollars will score much better that a credit card with a 2000 limit that has a balance of 1900.

So keep that in mind
it is best to keep it around 10% or less.

GOOD LUCK

....................................

WorriedMom

I am going through the process of cleaning up my credit. After speaking with several people at different collection agencies, I think I have come to understand it. After you pay the TOTAL balance owed to a collection agency, the agency will, in turn, report that balance paid in full. After as long as ninety days, your credit score should improve a little bit.

However, if you "settle" or "charge-off" your debt and pay the collection agency less than you actually owe, it could become a negative or a neutral on your credit report. Different collection agencies handle this differently. Either way, it will drop your score a little each time this is done. After speaking with a loan officer at a bank regarding this matter, I was told it is okay "every now and then" to settle a debt if it is really saving you some money, and that your credit score will only drop "a little." Another thing to watch out for here is to report it on your taxes if you do settle a debt. The collection agency will report a settlement or charge-off as their "loss"-- and the IRS will see that as your gain. This was a lesson I learned the hard way.

Keep in mind the more often your score is checked (by you, collectors, lenders, etc.) the more it goes down. Good luck to you and I hope this helped you!

airhead

you will see some but you won' t see a big improvment for up to 6 months and. if you don't see any at all you may have to call them because they don't care. Did you know that if you apply for 3 loans even if you don' t use any in a cetain time that your credit score actually drops? pretty lousy huh?

Carlton W

Yes, there will be some but there are a lot of factors that go into a credit score, including the type and severity of derogatory information. Thirty-five percent of your score is based on how well you pay your bills, which is where collections come into play. Collection actions are very damaging, with only bankruptcy being worse. Negative information, including collection accounts, is deleted seven years from the original delinquency date. The original delinquency date is the date reported for the first missed payment on the debt.. That date carries over from the first account to the collection account, so both accounts will be deleted at the same time.

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