I'm paying off a collection account, when will it get off my credit file?
Answer:
I'm simply amazed at how often I answer this question, and how often people continue to give out the wrong information.
stopccdebt! I know you have seen my answers! And you have seen my sources! Yes you, a professional credit person, still pass out wrong info?
OK, lets start again.
When you pay off a debt, all the collector is required to do is notify the credit bureau that the debt is "paid". But it will still contain information about your collections and late payments. It's still a negative/derogitory entry on your record, and will stay for 7 years, beginning from the day you became delinquent on the loan (NOT the last transaction date).
There are only two ways to get a negative entry erased from your history.
1) The creditor must delete it
2) The creditor fails to respond to a disput investigation from the credit bureau.
Therefore, if you want this removed from you history, you need to somehow convince the creditor to delete it. Once they have your money, you are going to find them very uncooperative in helping you fix your credit history.
So what I recommend to people is send them a letter saying that you will pay this bill, but only if they agree IN WRITING to delete the entry from your history. Don't pay them a dime without this agreement.
Otherwise, you will end up broke, and still have a bad credit history.
It will remain 7 years from the date of last activity. In your case, this will be 7 years from the date you send your last payment in.
It should be marked as PAID, but it will stay there for years.
Been there done that, even when it is paid off or you can do a settlement, it will remain on your credit for a year. Make sure once it is over to get a letter from the company that states that it is over 7 done with & keep it for your records 7 years.
check with he credit reporting agencies. i thought it was 3yrs for collections and 7 yrs for judgments and bankruptcy.
Never! This is a good thing though! once it is paid off you will not have bad credit, you won't have a good credit history, but it will still be considered credit. I have been told it is better to have bad credit than no credit at all. The best thing though is for you to go ahead finish paying it off. It will pay off in the long run!
It will take UP TO 7 years, BUT if you "dispute" the file it COULD be erased earlier. Since your paying it off, you have a better chance of it getting erased with a dispute. You can dispute at the three major credit bureaus.
www.transunion.com
www.equifax.com
www.experian.com
when you pay off the bill the company will show it paid off , they have 3 working days to do this
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