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cmptrgydv

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paying collection but staying on credit report
OK I'm wondering if paying off a collection that is on my credit report, but not getting it removed, just marked as paid in full will change anything as far as credit score,

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yes

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If you pay your balance, the negative factors of having outstanding balance are removed and your score will improve on most credit reports (providing that is the ONLY change in factors on your credit report)  Remember that your credit score is based on negative factors versus positive factors.  When you change a negative factor to a positive factor, it adds up to an improved score every time, even if a little.

Reply by
cmptrgydv

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Well let me explain this further, I do not actually owe anything to the collection agency, I am being charged for

A electric bill for an apt that I had moved out of, (I lived alone) so no other biller but me, xcel sent bill to collections,

Who then contacted me about owing $277 for electric, I told them no I had moved out and my final bill was paid,

so I called xcel and they looked it up and said no if I have the final lease that I had vacated apt, then no I do not owe the bill,

but they could not do anything because bill is two years old, and it was up to the collections, well I would have to drive 75 miles back to apt to get lease, that would mean taking day off work, which would cost me $200 in lost income anyway, so I called collection agency and said I do not owe this bill but I will be willing to pay you $200 to settle it, they said ok, then I asked them to please remove collection from my credit report, they said they cannot do that, they would send it as paid, but not remove it,

I then told them I do not owe this money and the only benefit I would get from me paying you is to have this removed fromMy credit report, they said they cannot do that, so I told them have a nice day, and did not pay the bill,

with that said I have been looking at stuff about credit reports, I have read that paying off a collection really would not change your score all that much, that the score is more based on the fact it went into default in the first place,

as of now my credit score is 740, I have 3 credit cards two from capital one, and they have raised my credit limit by $4000 in the last 5 months, which did raise my score 30 points, so I have to decide should I bother paying collections, which is the only negative on my report, or just let it go, and raise score with good marks, 

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