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SmilesTatted

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Can your credit score rise if you paid the discounted collection amount and you want to pay more
Hi my citi credit account is closed due to me paying off the collections discounted balance.

The credit limit was $1000 and the bill was higher say by 200. So 1,200
It went to collections and they gave me a option settlement of 500 to only pay. So i paid that an have a credit balance of 700. I dont have to pay nothing else anymore. BUT.....

I would like to know if i was to still pay little by little the complete balance off would my credit score rise for me still paying bit by bit on a closed account or would it stay the same?

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Depends on the score models...

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  • The VantageScore 3.0 model as well as FICO's Score 9 model don't factor in paid collections. This means that if you have a collection account on your report with zero balance, it won't affect your score. This can be really helpful if you have a collection account on your report and you're waiting for it to fall off (which can take up to seven years). However, not all lenders are using the newest iteration of FICO or VantageScore, so it's possible that a paid off collection account can still impact your score as well as a lender's approval decision.

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Nothing would change, besides the account is now "settled" meaning all is done with it. Your Citi account was most likely closed because the account was in collections, not because you paid a "settlement amount". Please do some reading about credit, you will never win the game if you don't understand how to play it.

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