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Question By
itsyorkie

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If I pay off a collection account will my credit score improve?

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Question

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Do you send the letter before or after the balance is paid off ?

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Depends on how the report it

Helpful to 2 out of 2 people

I recently settled and paid a credit card for less then owed with Bank of America that was in internal collections and was on my credit report as a charge off with them and was about 1 year old. I settled and paid the debt and Bank of America reported the the debt as paid for less than owed, but here is the key they removed every last late payment and charge off that was associated with that account and my score went drastically up. My score went up between 50 and 100 points. The amount of the debt was 5400 and I settled it for 2950. Prior to settling that debt my score was hovering around 600. If I would have paid the full balance and did not settle the amount I would still have all of those late payments and charge offs. In this instance settling worked out very well. Im not saying it will work for everyone, but it worked for me. I just wanted to share my story because I went to the message boards to see if I should settle the Bank of America debt and really couldn't find anything. I hope this helps.

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Haven't tried it yet

Helpful to 32 out of 34 people

I found this pay for deletion sample letter http://www.credityoda.com/pay-for-delete-letter.html. I have not tried it yet but it looks good.

Reply by
Esomirp7

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Helpful to 6 out of 7 people

I'm using it now. Will be mailing letters tommorow and will update any responses I get. Thanks!

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Helpful to 75 out of 85 people

Yes your score will improve once it's paid off. Make sure you ask for pay to delete option. It is always good to negotiate the amount with them and ask for paid in full letter as a proof that it has been paid in full. 1 collection account will increase up too 30 points on your credit report. It takes almost 30 days to update. If you settle the amount less then what you owed it will still impact on your report as negative. You can always dispute the amount with credit agency and have them update the record with in 30 days. Hope it helps. 

Reply by
lmj1968

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37 People Helped
Helpful to 16 out of 25 people

I paid off some old medical bills which were in collections last year. My credit report (Equifax) shows them as having a 0 balance/paid, but they are still having a negative impact on my credit. I didn't know I should have a letter from the collection agency for my protection at the time....how can I get this to stop negatively impacting my credit??

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Help!!!!

Helpful to 1 out of 1 people

I have an item in collection for $31.00. It was put on my Experian report in September 2016. This is an old ATT bill that I forgot to pay. I called the collecting agency and attempted to pay off the collection in exchange that they would delete it from my report but the debt collector reported that he was not able to remove it from my reported. He wanted to take the payment though. But I told him that I would call later in the week to make the payment. How do I deal with this situation?

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Collection Notices by Mail

Helpful to 1 out of 1 people

Im trying to get my credit fixed up as well as everyone else. I recieve collections notices by mail, but they are not on my credit report. They are for ie: old utility bill or something I ordered. Do those effect you when trying to buy a home or car? I do have one cable bill on my credit report thats been there since 2011, do I ride it out or do I try and settle? The debt is $285. Do I try them with a 1/4, 1/3, 1/2? Everything else on my credit report shows me having excellent payment history the last 4 years. I feel this could hold me back. Thank you in advance!!

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12 People Helped

what if the creditor refuses to send.

Helpful to 12 out of 15 people

the collections agency said they do not handle credit information that we would have to talk to the original creditor... we talk to the original creditor and  they refused  to send a letter of promise. i was told that they cant send thing of sutch a nature and that once the account has been paid they send a letter of a 0 balance. my question is how can i get them to send a letter promising before i make a payment? or would it be better to wait for that letter and if they dont send it after 30 days dispute it?

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17 People Helped

removing collection items

Helpful to 1 out of 1 people

I am trying to settle up my credit score and rebuild some credit. We recently had a positive change in circumstance and while I do not need anything other than a bank account, score is very poor, I have dealt only with cash for 14 years while I fixed and waited out certain debts. 2 remain from 2012 medical bills and the bank will not give me a checking account until they are removed. I have no other anything on my report.  I have no problem paying them, they total less than $800. The lesser one, under 300 I called and they agreed to remove it when they receive payment, but said it could take 30-90 days, is there anyway to force this issue to go faster?  If I dispute the second one, which I have no idea of the date of services, do I put that I do not recognize this bill or what? And is that faster way to remove than paying them off?

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I owe only $85

Helpful to 1 out of 1 people

it has been i colections for about a year or two i have a crdit crd got aproved for a loan and many other things i payed my cridit cards good i paid my loan off...and now i see this its not that far away to go to the collection place. if i go there and pay them in cash in full there stupid $85 can i get a statment from there end saying that the accounts been payed in full..Btw they have yet to contact me in any way.by mail nor by phone.

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asking for debt to be removed

Helpful to 4 out of 5 people

I had an open collection account that was on my report. This is how I handled getting it removed.

I never admitted to the debt and asked that the collection company to stop calling my job. They continued calling so I put in a formal complaint to the Consumer Financial Protection Bureau via their website. They in turn sent the complaint to the collection company, which had to respond within 15 days. In the response from the collection company, it stated they wanted to be in complaince and agreed to totally remove from all 3 agencies once payment was made. Before I sent payment, i emailed the collection company with an attachment of their response to my complaint, and asked for their agreement to remove to be put on their letterhead. Within 7 days, I received that letter. I called, made full payment of $175.00 and in 2 weeks it was removed from my credit. Score jumped 28 points. 

Reply by
horsejumper23

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Helpful to 1 out of 1 people

Enter Your ReplyWhat did your complaint to the consumer financial protection bureau include?

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