Quote Originally Posted by JITB
SOo if i pay it off in 2-3 months. it wont show on my credit report as payed for 7yrs? thats harsh... im wanting to purchase a new vehicle, i can afford one...its just my credit is messin up the process..
No. If you pay it off whenever, 2-3 mos or 2-3 yrs, the creditor has the right to leave it reporting on your credit as a "paid collection". It's not as detrimental to your score as an "outstanding collection", but it certainly is not a "good" mark either way. The creditor can do that for up to 7 yrs. Some creditors are notorious for doing this very thing. You pay the off after an account goes into collections, even with good reasons, yet they keep reporting to the bureaus that it was a paid "collection". The words "collections" and the actual credit history (+30, +60, +90 day lates) is what kills your scores.

See, there are creditors that simply wipe everything out when you pay them off. Your account looks spick and span. You may have had them for open for 10 yrs, had a ding here and there, but when you paid them off they basically wipe out the account back to the way it was when you opened it. Clean slate.

The majority will keep sticking it to you until they can't no more.

Nature of the beast guys. Not fair at all, believe me. But it happens frequently. I know because I do this all the time for my customers.