"Paid Collection" item on credit report?

Question

Can anyone tell how long does a "paid collection" item affects credit scores? I had a collection item placed on my report in 1/07 which was originally delinquint from 12/2002 and was paid in full in 4/2007. It had mysteriously appeared on my credit report after 4 years. I am not disputing the validity of the debt, it was probably mine so I ended up paying it but I didn't get the pay for delete letter, stupid me! It was paid in full in 4/2007. Can someone tell me how long will it continue to affect my credit. Other than this my credit is clean. I have multiple credit cards, charge cards, mortgage and car loans on my credit. I know it goes away in 7 years but was wondering when do you see the effects of it being reduced? It was paid in full and reported as such in 4/2007 while the date of first delinquincy is 12/2002. In 12/2009 I know it will be removed.

Answer 1

The bad news is once you paid the debt, the collector updates the account to show "paid".  But he has now turned this "old" debt into a "recent activity".  The credit scoring formulas give recent items more importance, so you have just hurt your credit score a little bit by paying this.

Sucks, doesn't it?

It will drop off your report in 12/09, and you should see an immediate improvement to your scores.  Just hang in there.

Answer 2

It should not be affecting now. What could be is the limit on the bank with your charge cards. If they are over 50% then the scoring modules are picking up money problems.

When  looking at your cbr the first thing typed about your score is what they have placed the most importance to. Most of the time it is limit on the bank to revolving accounts.