Paid collections are still a negative to most unsecured creditors that use automated scoring as the systems simply key on the fact it is a "collection" account - paid or unpaid does not matter. Most mortgage lenders will require most collections be paid - however - it is definitely possible to get a mortgage with unpaid collections on your record.
lbrown59 says it doesn't matter ever. LizardKing says it may matter with respect to acquiring a mortgage. Your one-question IQ test (for 120 points): Which should you believe? Quick, your time is limited. Tick, tock, tick, tock... Bzzzzzzzz -- time's up! And the answer is: LizardKing, of course. Doc P.S. Thanks for your erudite contributions regardless, lbrown59.
I'm not sure what they do to your score. I can say that when I was approved for my Citi AA card they pulled EX(my worst report). I had 7 paid collections on there and two charge offs. Ed
I recently had a paid collection drop off my report. I gained one point. Where they really matter is with your other creditors. When they see a collection, they will jack up your rates because you are now a bad risk. (But, when the collection comes off your report, they don't lower your interest).
WHF? congrats on your cards but I got DENIED with 2 SMALL negative unpaids and 0 paids and 8 positive trade lines.
That is why I maintain that paid/unpaid doesn't really make a difference with some creditors - some only see "COLLECTION" .
