Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
nms1310

2 Contributions
207 People Helped
If I pay the full amount of an acct. in collections, how long will it take to come off of my credit?
I have several derogatory marks on my credit score (young and stupid). I plan on paying them off in full to ensure that they are removed from my score. How long will they show on my credit score after being paid off? Is it still years? Or are they required to take it off sooner? Please help!!!! :(

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-10 of 29Results per page: 5 | 10 | 25Page 1 of 3   Previous | Next
1 Contribution
75 People Helped

Helpful to 75 out of 87 people

I currently work at a collections law firm and it's no telling until the credit bureaus are nnotified along with waiting for the other steps that take place within the businesses with the debt, but once its paid in full make sure u request a Paid in Full document from that collection agency then within that agency its a process to close out account which is another department that handles that, in our office its our Client Service department then they report it back to the original creditor and the original creditor reports it to the credit bureaus. So basically it depends on how quick their employee do their job. Your best bet is to request BIF (balance paid in full) document via fax or email, then contact the original creditor and fax over a copy to them to speed up the process. Then get advice from them they would know best since they're the ones reporting to them. A typical days work at the firm, I'm an account manager for capital one judgement files aka garnishment files. 

1 Contribution
195 People Helped
Helpful to 195 out of 265 people

Hey!

I paid in full a few collections (1 credit card, 1 cable bill) a while ago (2 years ago). I didn't know about paid to delete back then (I was a stupid college kid). Although I paid them in full, they still appear in my credit report. Is there a way to get rid of the reports from my credit report?

Reply by
LADYKDA70

1 Contribution
77 People Helped
Helpful to 77 out of 101 people

Hello how would you know who was the original creditor and the information? I want to pay in full for one of my collections (only have two but one is a lot smaller and easy for me to pay) but I want it to be off the record as soon as possible because I'm planning on buying a house.

Top Contributor

Reply by
JohnnyRain127

1514 Contributions
1843 People Helped
Helpful to 51 out of 65 people

Haha that's load of BS. Vast majority of debts are being sold to debt buyers, that debt can be brought and sold many times over from one collection agency to another, once it's sold, that debt has nothing to do with original creditors, as original creditor no longer has any authority on that debt, so the original creditors are powerless to do anything to change the status of that debt nor delete the collections. Just think, after you "sold" your car? can you demand the new owner not to wash the car?

Reply by
FalconSteve

4 Contributions
1 Person Helped

Your *very* best bet is to go back to your original creditor and attempt to pay the bill in full. If the item is in collections and shows on your credit report, your creditor may still accept your payment anyway and provide you with a paid in full letter. If they do, you can contact the collections company, present your paid in full letter and make the case that the item doesn't belong in collections. I've done this several times over the past 10 years and *each* time, the collections company removed the item from my credit report. This is important, obviously, because if you pay the debt off through the collections company (instead of paying the creditor directly), the colletions item can still remain as a paid collections item on your credit report for 7-10 years.

Reply by
khieu

1 Contribution
0 People Helped

its been a couple of years how can I get the name of the collection compancy?

1 Contribution
69 People Helped

How Long will it take.....

Helpful to 69 out of 99 people

I plan on paying off in full 3 accounts that are with collection agencies, and asking for a "Pay Per Delete agreement" for each. How long will it take to have these removed from all three credit agencies reoports? 

Top Contributor
3051 Contributions
2898 People Helped

Helpful to 123 out of 145 people

They can remain on your report for 7 years from date paid off UNLESS you negotiate a Pay Per Delete agreement with them. They agree in writing that they'll delete the account from your credit report once paid in full.  Also be aware that these accounts will automatically fall off 7 years from the date they went delinquent if you don't pay them.  Just food for thought.  

Reply by
nms1310

2 Contributions
207 People Helped
Helpful to 68 out of 109 people

Well, my problem is that I'm still rather young (25). and some of these accounts are only 3-4 years old. I would like to be able to buy a house in the near future, and don't want to have to wait 3-4 more years. So I would rather try to get them off now, but I was unsure if they HAD to stay on for years, or if it was possible to get them taken off sooner. I plan on paying off the smallest amounts first, so that I will at least have some taken off and can start bettering my score.

Reply by
nms1310

2 Contributions
207 People Helped
Helpful to 139 out of 186 people

Also, if I pay it, and they do not delete it off of my score, but they show it as paid and a 0 balance, will that still help my score go up?

Top Contributor

Reply by
Jasper2

205 Contributions
1186 People Helped
Helpful to 46 out of 65 people

Not entirely correct.  

If you make one small payment, that "re-ages" the account from the date you made the payment.  THAT is the date from which the 7 years starts counting down.  

That is the danger in paying the wolves to get them off your back for another month.  

If you agree that the bill is legitimate, and you intend to pay it off, then do so as quickly as you can.  Even if you paid 99% of your bill, it can show up for 7 years from the date of your last payment.

Reply by
FUSCHA

3 Contributions
0 People Helped
Helpful to 0 out of 1 people

It does not just disappear, it becomes added to the national debt and becomes everyone's problem.

Reply by
ultam8girl

1 Contribution
0 People Helped

Recently learned that if you set up a pmt arrangement with collections account they MUST remove it from collection as it is being paid and no longer considered in collection (unless of course you default)

1 Contribution
9 People Helped

help!

Helpful to 9 out of 13 people

I recently paid a collection of $188 and they told me it should come out of my credit report in about 90 days is that true? it stills shows i owe should i give them a call so they can update it and show that at least its been paid off? 

4 Contributions
111 People Helped

False Information

Helpful to 48 out of 62 people

    Please do not spread false information and mislead people. There is a date on a collection called the "DFD" date, which is the date the original account (not the collection) went dilenquent for the first time leading to the default. When you pay a collection agency to bring your account to 'Paid in Full'; the Activity Date will be updated to make this look like a recent collection. A lot of lenders are doing manual reviews of your account these days which is better for those who take care of collections on their credit report. A collection agency legally cannot touch the DFD date. However, sometimes paying off a debt may lead the CRAs to enter data into the wrong date fields so you have to keep an eye on this. Also it is illegal for a CA to change this date as well.

    One thing to note; you will re-age the Statute of Limitations allowing the lender/collection agency to come after you if you make a payment arrangement. Most collection agencies are willing to work with you if you put forth the effort however. Good luck to your rebuild :)

Reply by
Erusidhion

4 Contributions
111 People Helped
Helpful to 33 out of 47 people

I meant to add also that 7 years from your DFD date, it will fall off of your credit report. Paying a collection in full does not restart this date; it will only bring the collection's activity date current which can sometimes hurt your score. Paid off debt always looks better to manual reviews/reconsiderations for lines of credit.

Pay for deletions is always one avenue you can go down if you want to spend the time doing it. Otherwise if you Pay in Full, you can send out goodwill letters to these companies explaining your situation and why you defaulted in the past on specific collections. Be honest and write it in your own words. Again, good luck!

Reply by
Idlechaos86

1 Contribution
24 People Helped
Helpful to 24 out of 36 people

I paid all three of my collections in full and they reflect "paid in full" but the default on the original account was over 7 years ago. Shouldnt these be removed entirely? Ive noticed the dates changed as the debt was resold over the years. How can I get the 3 credit bureaus to investigate to determine the original default date and thus remove this? Any advice is greatly appreciated!

1 Contribution
4 People Helped

Derogatory mark

Helpful to 4 out of 6 people

I have two medical bills from 2014 that I had no clue about at the time I was receiving full coverage Medicaid . Should I wait til the marks fall off ? What's the steps to take to remove them I tried contacting the hospital & billing agency as well as Medicaid still no answers . I should not be held responsible for this bc my Medicaid card was provided at the time . What to do ?

1 Contribution
26 People Helped

don't just pay, dispute

Helpful to 26 out of 35 people

When I was trying to repair my credit, first thing I did was dispute the charges through the 3 credit bureau's. 90% of the collection accounts on my credit report simply disapeared after a couple months, and you don't have to pay the collection agency!

this can be done online in just a few minutes - usually for free

Reply by
ANEWME14

2 Contributions
13 People Helped
Helpful to 13 out of 21 people

What did you do when you disputed them? I have several & want them off!

Top Contributor

Reply by
Jasper2

205 Contributions
1186 People Helped
Helpful to 11 out of 26 people

Sorry...very bad advice.  You can't negotiate away a bill you owe someone by negotiating with the credit reporting agency.  Not going to happen!  

You have to PAY all legitimate bills for that to happen, and it will take up to 7 years before it will no longer affect your credit history and your score.

A collection agency OWNS the bill they are collecting, generally.  They paid the original creditor a percentage of what is owed...usually in the area of 30% to 50% of the owed amount.  So it is THEIR money you owe them...not the original creditor.  They are not going to forgive that debt.  They will only remove it if you pay them (or negotiate and pay them) what they think they can get.  The collection representatives are paid on commission.  The more they collect, the fatter their pay check.  If they give away too much, they also give away their job.  Collections agents who don't collect past due bills will soon collect unemployment checks.

1 Contribution
1 Person Helped

paying off my entire debt

Helpful to 1 out of 1 people

i would like to know. do I pay off my bills to the collection agencies. Someone told me the collection department do not take what you paid off your report until like 7 has past.. I need to know if this is true

Top Contributor

Reply by
JohnnyRain127

1514 Contributions
1843 People Helped
Helpful to 1 out of 2 people

Paid collection isn't ground/reason for removal for your credit report just because it's paid, that's a very common misconception. Paid and unpaid collections have same reportable length of 7 1/2 years from Date Of First Delinquency. However, not only pay back what you owe is the right thing to do, it prevents creditors/ debt collectors to take further action against you, like suing you.

1 Contribution
21 People Helped

to answer nms1310

Helpful to 21 out of 29 people

when something is on your credit report they report at least once a month to each of the 3 agencies.

they all report on different dates, but def at least once a month.

if you chose to pay something off, make contact with the company you owe the debt to and ask on what day they report.

make your payment and await the date that they report. usually they are good about it as you fulfilled their bill.

if they havent reported just give them a reminder call.

hope this helped.

1 Contribution
1 Person Helped

Helpful to 1 out of 1 people

My husband & I had a joint account it went into collection we paid it off they reported it 0 paid off on my credit report.  Unfortunately they did not on my husbands credit report.. I contacted the company an they said they would report it as paid.. We have waited patiently for them to do so an it's still the same.. Now what do I need to do to fix this?

Results 1-10 of 29Results per page: 5 | 10 | 25Page 1 of 3   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.