Sydney Garth, Credit Cards Moderator
Paying off a collection won’t remove it from your credit report. Negative information can still remain on your credit report for a period of 7 years. Typically, the only way to remove a collection account from your credit reports is by disputing it, and that only applies if the collection account is a product of error or fraud.
If the account is legitimate but has been paid, contact the collection agency to request a goodwill adjustment. In other words, you're asking them to remove something negative but legitimate as an act of kindness or understanding. As the name implies, the collection agency is under no obligation to comply with or even consider your request.
Ultimately, even if you don't remove the collection account, having it show up as paid on your report will improve your creditworthiness to future lenders, as a sign of you taking responsibility for past mistakes.
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Alicia Ambrose, Member
If you call and ask, they might. I had two accounts in collections that were paid off. One agreed to remove it from my report, while the other said they don't participate in early removal.
Richard E Morgan, Construction Flagger
Well then I'm going to tell them I'm not paying til they remove it.
Leslie Drury, Member
No, still remains up to 7 years. I don't think it even helps your score to pay it off. On EX I have 2 collection accounts with a balance of $0 and they still flag as derogatory. They are 5 and 6 years old.
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