If a collection debt is paid is it immediately taken off your credit report?

8 Comments

1. OC1999 says:

   November 14, 2011 at 5:02 am

   It has to be done in a reasonable time, depending on how often a company sends updates it may be anywhere from about 30-60 days. When they do update it the only legal requirement, per the Fair Credit Reporting Act(FCRA) is that what they report is correct. So if you paid if off they must show that. They are not under any obligation to remove the listing.

   If you want them to remove it you must send them what is known as a “Pay for Delete” letter. This basically states that once you pay the debt they will remove the listing. Only after you have something in writing from them is when you should pay them any money.
2. el tib says:

   November 14, 2011 at 5:17 am

   NO! It’s your debt, and it’s actually your job to make sure it is taken off your report. Get the paperwork from the company to say that it has been paid, and it has been settled, then send that to each one of the credit reporting companies.

   Then follow up with them to make sure that it was taken off…actually paid off. It usually takes about 30-60 days. Also, it can still look bad to some people that look at your credit, so make sure to explain to them that it was a mistake that you didn’t pay it originally, and that you have paid it and it is cleared up now.

   Good luck!
3. Gee says:

   November 14, 2011 at 6:13 am

   I was told by a debt collector that it will take 30 days from the final payment and then it will be placed as paid in full on your credit report
4. Anna D says:

   November 14, 2011 at 6:47 am

   no it will stay on for 7 years in most states. u need to negotiate with company by saying i will pay but only if you delete it or stop reporting it. its called pfd or pay for delete. look it up on myfico in their forum section! for an actually free credit report go to annualcreditreport.com
5. Angela B says:

   November 14, 2011 at 7:44 am

   It will show on your report as paid, but it will also be listed as being deliquent prior to being paid.
6. mister ed says:

   November 14, 2011 at 8:04 am

   no it will not be taken off — it will just show the debt is paid late!!
7. acermill says:

   November 14, 2011 at 8:14 am

   No, they do not. They do need to change the status to ‘paid’, but it will remain in your credit report for the next seven years.
8. Scott B says:

   November 14, 2011 at 8:57 am

   The only thing they have to do is change the status to “PAID”. The collection can remain for 7 years from the first delinquency of the original account. For example: You had a Chase Visa and the last time you paid on it was Oct 2003. Eventually they probably charged off the account and sold it to a collection agency. The collection agency and Chase can report this item until Oct 2010, after Oct 2010 both will fall off. For credit scoring purposes, a PAID collection is not any better than an UNPAID collection.