The credit report represents history on all accounts. When you pay off or close a collection account, the collection company updates the account to reflect the new payment status of the account. However, closing or paying off an account does not cause it to be removed immediately from your report. Accounts that are paid stay on your credit report for seven years. Settling an account for less than the full balance owed is still considered negative because you did not repay the entire debt as agreed under the original contract.

If there is a history of late payments, the account will be updated to show that it is settled and will remain in your credit report for seven years from the date the account first became delinquent and was never again current. That date is called the original delinquency date. Paying off collection accounts does not always mean that your credit score will improve as the account itself still remains on your credit report as a negative account, still damaging your credit score. This can still prevent you from being able to get approved for new credit.

Credit Services of America can help you with your credit and debt. We not only review your entire report with you but we also have customized packages that we tailor to your specific needs as no credit profile is ever the same. Good credit is a choice that you make. Credit Services of America has helped thousands of people get back on the path to great credit. Stop procrastinating, come see for yourself.

A Goal without a Plan is just a Wish. Give us a call TODAY at 844-FIX-URCR or click on the following link to schedule your FREE consultation and create your personalize plan to achieve your credit and debt GOALS!

*Individual results may vary. Please call for details and to discuss your own individual situation. We are not a law firm and do not give legal advice.