Will My Collection Account be Deleted When I Pay It?

Many people think that to repair their credit, they just need to pay off whatever derogatory item is affecting their score. This is false. Your collection, charge-off, or late payment will not be deleted when paid or settled. Once the item is paid, it will stay as a collection, charge off, etc.; the credit bureaus will simply add a line that says it has been settled or paid. Your score will remain negatively affected, and now you will have to wait 7 years from your latest payment.

That being said, is it not wise to pay on a derogatory account? I always recommend that people pay their obligations. Once an item has been paid, it is much easier to remove. The reason for this is that the collection agency or creditor is no longer interested in verifying the information to the credit bureaus when disputed.