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Question: When you pay off a collection account does that pay both accounts and are both removed from your credit report?

(Posted by: Ms Drea on 2010-07-29 20:46:00)

Posted by: Jon K on 2010-07-29, 20:49:17

What do you mean both accounts? There is only one account, the one from the original creditor which gets sent over to the collection agency for collection. Once you pay that, then it has been paid. Get some sort of confirmation from them that it has been paid though.

Posted by: Amber on 2010-07-29, 21:22:35

This answer is going to depend on alot of things. I work for a collection agency. If an account is placed in collections it is still only one account but the collection agency is paid to collect the debt. Some agencies like mine dont report this to your credit immediately. Always ask is IF this has been reported to your credit. if it has, once you pay the debt it DOES NOT get removed. The agency updates your credit report as a satisfied debt and it stays on your credit for 7-10 yrs. It can take up to 30 days to update officially on your credit report that the debt is paid. Now, the original creditor and the collection agency can NOT both report the account to your credit. It will be one or the other. So be very careful when handling bills. It's so much easier to pay it with the original creditor. Good luck.

Posted by: GI Jane on 2010-07-29, 22:33:52

It won't be removed from your credit report, it will show up as "account sent to collections " and "paid as agreed ".

Posted by: bdancer222 on 2010-07-29, 22:35:00

Paying off derogatory items on your credit report will not improve your score, nor get the item removed. The damage is done and will remain for the balance of the 7 year reporting period, whether paid, settled, or unpaid. The original creditors charge off should show a 0 balance due. The collection agency should show the balance and after you pay, the account should be updated to show the acount paid or settled. You may as well settle for as little as you can. Be sure to get any settlement agreement in writing and do not give the collector direct access to your bank account.

Posted by: Caveat Emptor on 2010-07-30, 06:03:08

No, "both " are not removed. They remain part of your credit history. The listing from the original lender is the chargeoff of the bad debt. The listing from the collection agency is the debt they bought from the original lender - that will be updated to "paid - zero balance " but it will remain on your history until it ages it's way off. That's what a credit HISTORY is.

Posted by: Tom on 2010-07-31, 18:42:45

Ask lenders for agreement to delete this items from your credit report when paying them. I recommend to get such agreement thru credit repair agency, for example this one - credit-report-score.10001mb.com