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chrisgivens22

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Will an account that is in collection hurt my credit score again when it is closed?
Almost a year ago i had an account go into collection. It dropped my credit score a good bit. Today a collection agency called and said it was my last chance to pay it before the account closed. If i do not pay this will it hurt my credit score even worse?

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YES, this could hurt you

Helpful to 2 out of 2 people

I'm actually dealing with this right now. I had a medical bill for a small amount ($50) go to collections because it fell through the cracks. I paid up right away, not realizing what would happen. Unfortunately by paying without taking other steps, the collection has stuck on my credit report. It is listed as a "PAID" collection, but it stays - and it shows up for anyone who might pull it for about 7 years.

In researching my options, it turns out the best bet would have been to try and negotiate with the collections company by asking if a) you can pay off some portion of the debt, and b) they can agree in return to remove the notation from your credit report. They may so no, but a lot of time they will negotiate this with you. Again, get that assurance in writing, and don't give them any money until you have it, if at all possible.

Here's an about.com article that discusses this further: http://credit.about.com/od/debtcollection/qt/paycollection.htm

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