5 ms·
I thought once you paid the debt the credit score should improve, no?
by p1esk 3y ago
I thought once you paid the debt the credit score should improve, no?
- yieldcrv 3y agoIt improves but collections are an adverse notice on your credit report that stay for 7 years. Its different from just holding a high balance on the card. The score almost means nothing with them present.
- p1esk 3y agoSo if I want to finance a new car, does it make a difference whether the debts are paid or not?
- NovemberWhiskey 3y agoYes - unpaid charge-offs are more derogatory than paid ones - I'm not sure that hits (say) a FICO score but lenders that look at a full report can tell the difference.
- vel0city 3y agoI once had a collections report on my credit history. I paid off the debt and asked them to remove it, a few days later it was gone as far as I could tell. Not that everyone's experiences will be like this, just pointing out it is not necessarily always 7 years on the report.