How much of an effect do closed accounts have on a Fico score?

Question

Closed collection accounts and closed credit accounts?

Does a closed unpaid collection account effect your score equally as if it were open and unpaid?

Answer 1

A closed unpaid collection account is a very bad notation. However, an open collection account and/or an unpaid collection account notation is just as bad.

Collection accounts pretty much suck no matter what. Now, with that being said, a collection account that is paid and closed prevents them from suing you over it...but as far as your FICO score is concerned, they are pretty much the same.