After a collection is paid off do granters look past that mark?

After I have paid off a collection and my credit report states that it is closed and paid in full, do granters look past this. On my current credit score I have 6 negative marks, 4 of the 6 are paid in full and closed. From what I have read on here it seems to be a lengthly process of trying to get that mark removed before the seven years are up. It has been over 2 years and my credit score is rebounding but it doesn't seem like it is going up very fast. Is there any I can do to improve my credit score to get me great interest rates? Also I have presented offers to the original creditors to pay the accounts in full if they will pull them back and none have taken any of the offers. Correct me if i'm wrong but from my understanding once an account is sent to collections the original creditor is paid the unpaid balance in full from the collection agency and the agency comes after you and tacks on an agency fee? Thanks in advance!

Public Comments

1. You can try disputing with the credit agencies. Sometimes the creditors don't pay attention and don't answer the dispute and thus it is removed. Unless you can get away with that result, they won't be removed for the 7 - 10 year timeline. However, by paying them off and getting them cleared up, you can actually still improve your score within a couple of months to qualify for better rates. However, don't apply for new credit during that time period. Every inquiry by a revolving acct (i.e credit cards) will hurt your score.
2. Boy, sounds like some trouble. If it were that simple it would be great. 7 years. Unfortunately it takes a while. First the best thing to do is to get those other 2 accounts paid off and closed. They are effecting your credit more than anything. As long as they are on there you aren't going to see much increase. Say you do get those paid off and you are showing 6 paid and closed creditors will be more leniant then they are now. As time goes on and assuming you've been ontime with your current obligations such as car payment and credit cards they will tend to look less on those blemishes. But as far as getting great outstanding offers for credit again 7 years. Now your question about collection agencies. Usually when a company send an account to an outside collections company they original debt isn't paid to the creditor. They usually sell the debt to say ABC collections for an amount like 7 cents for every dollar. Some amount like that. Then the collection agency will assume that debt and charge you they original price plus a fee for collections. While the creditor is left with only partial payment and a write off of a bad loan. Which is why even if you pay off the collections agency since it is a different company the creditor will generally not lend to you ever again. Well sometimes they will but not for a long time. For your last 2 accounts contact the people they were originally with and see if you can settle with them instead of collections the sometimes can.
3. Hey Ryan~ You asked quite a few questions so I'm going to break my answers up so here it goes: "After I have paid off a collection and my credit report states that it is closed and paid in full" Are you SURE you owed the collectors? You may not have had a contractual or legal obligation to pay them. Did you ask for validation of the debt before paying? If not, even though you have paid them it is not too late to ask for the validation. If they cannot validate the debt, even though paid, you may be entitled to a refund of said monies as well as they cannot validate or verify the information with the credit reporting agencies. "do granters look past this." For scoring it will not help your credit score. HOWEVER, if a creditor does a manual review of your credit then yes they may look past it as it has been paid especially for a mortgage. "On my current credit score I have 6 negative marks, 4 of the 6 are paid in full and closed." Remember what I said above about the paid accounts. For the 2 that are not paid; send them a debt validation letter by certified mail return receipt requested. You want them to prove to you that you have a contractual and legal obligation to pay them and not the original creditor. "From what I have read on here it seems to be a lengthly process of trying to get that mark removed before the seven years are up" If they do not respond to your validation request send a copy of the certified letter along with a copy of the "green card" you get back from the post office for the certified mail to the credit bureaus along with a dispute of the tradeline in question. You have proof the debt cannot be validated therefore it must be removed according to the FCRA. "Is there any I can do to improve my credit score to get me great interest rates?" I don't know what your current scores are but yes there are several things you can do like continue paying your bills on time, lowering utelization on any accounts currently open. Do not seek further credit. Each inquiry can hurt you. With as many derogatories you currently have it may be difficult to get new credit. If you have a good history with your current creditors then you may want to consider calling them and asking them to lower your current interest or wave annual fees. "Also I have presented offers to the original creditors to pay the accounts in full if they will pull them back and none have taken any of the offers." That is not uncommon. Try to work out a doable payment plan with the original creditor (OC) to pay off overdue balances. Do whatever you can to keep the OC from sending your account to a collection agency if at all possible. If you insist on continuing to make "offers" to the OC then make sure you're sending them in writing. "Correct me if i'm wrong but from my understanding once an account is sent to collections the original creditor is paid the unpaid balance in full from the collection agency and the agency comes after you and tacks on an agency fee?" Ok I'm correcting you. In my opinion you're wrong. Some collection agencies may actually be "in house collectors" which means the collector is a paid employee of the original collector. Outside collectors are known as third party collectors or JDB's (junk debt buyers). In many contracts and states a collection agency may not be permitted to tack on additional fees which is why it's important to ask for validation so you will know what the fees are for if they are in excess of the OC. Many JDB's purchase debt for pennies on the dollar.
4. Ryan, here's the problem.... You say that you have 6 negative reports, 4 of them say "paid in full"? You just got screwed by the collection agents, and that's why I'm always warning people here! Get it in writing to REMOVE the report, or take off any NEGATIVE information. It's not enough to just say "paid in full" because you will still reflect late payments or other collection efforts. That doesn't help your credit score one bit! Since they now have your money, you have no leverage to negotiate with them to remove the report. Your only hope is to follow the advice in the previous letter and send a Validation letter. Hopefully they don't respond back or lost the paperwork to your account. Many times they don't even want to mess with the time/expense of going it, especially since the account is paid. When they don't respond, just notify the credit bureau, and send a copy of the validation letter. The agency must remove the listing or they are in violation of the FCRA. Good luck, hope others learn from your mistake. Contact me if you need some advice or encouragement. Been there, done that!