May be a silly question, but hey one would never know if never asked. I have often read that whether a collection item on your credit has been paid or not it will still remain. IF this is the case would someone please advise as to how the credit score will rise and get better if this is true. My main reason for asking is because I have a judment on my credit rept. and have recently been given a settlement amt. but was told even when i pay this it will still remain. So once again, please tell me where is the benefit to satisfiying the debt. Also, noticed two diffrent collection agencys trying to collect for a debt owed for the same medical bill, is this legal?? I have a longggg way to go
There isn't any benefit to paying it. Several factors enter into whether you should pay it or not. Some of those might be: 1. Are they doing anything to collect on the judgment. If not then it may be better to just leave sleeping dogs lie because if you mess with it the result might very well be that it will jump up and bite you. 2. How old is the judgment and what is the statute of limitations on judgments in your state? That is probably very different than the other types of SOL that you may be used to dealing with. 3. How long before it goes off your credit report? 4. Is the judgment vacatable as a void judgment? Those are all things you should know about and consider.
Credit scoring factors that the debt is paid, and factors for whether "Paid In Full" or "Settled" for partial payment. The other aspect is when your report is being reviewed by a creditor, that it does look (slightly) better that you in fact paid/settled the debt.
