Paid off debit but still reporting as negitive

Is it reporting a zero balance?

Paying a collection account is not positive....they tradeline will still reflect past due and collections except with a zero balance.

This is listed under payment status..

"Seriously past due date / assigned to attorney, collection agency, or credit grantor's internal collection department"

Account Status says closed and it shows no balance.., but they are still reporting to the CRA. I actually payed it in August so it's 3 months not 2 (time slipped by) and for the last 3 months the credit report is showing [KD] in red just as it has for the month prior.

If I've paid the debit & they have closed the account, why would they still be reporting? I have no clue what the KD means (from Experian) but if they are no longer reporting it shouldn't still be in red.

What you are not understanding is paying a collection account does nothing for your credit...the creditor is permitted to continue reporting the negative tradeline for 7 years from your date of first deliquency. So if you stopped paying 3 years ago, it has another 4 years to report.

As soaplady said paying a collection doesn't make it come off the report. You have a few options. I would first start with calling the collector and asking if you can pay them to stop reporting it. At the very least you can get them to report it as paid.. That will not help your score but it will make a difference when say, a mortgage banker, is looking at your report.

You can also try disputing it endlessly... i've heard of the collectors giving up verifying the accounts at a point.

Well what's the point in paying a collector if the OC won't stop reporting and wont change it to paid? I thought by law they had to update the status of the account of at very least paid or settled.

I mean they sold the account to someone else & I settled with them, why should the OC continue to says it's not been settled?

On the plus side When I refreshed my report this month my credit score had bumped up 57 points which was a nice surprise. I recently picked up a basic secure CC to get some current credit history but I didn't expect it to show any improvements yet as I haven't even paid my first bill.

I did notice that my oldest bad credit is now 1.5 years old, so I dunno if maybe that helped or not.

The point is, regardless of what it says, it will not help your score. A collection is a collection which is inherently derogatory on your report regardless.

The age of the bad card has nothing to do with the increase in your credit score. The numbers jumped because you opened a new line of credit (the secured card) and this increased your total available credit pool which positively affected the credit utilization ratio (provided that you refrained from maxing the card) and your debt to credit ratio, just 2 of the components among thousands in FICO's score calculator.

Hey Steve I think you posted on the wrong thread...didn't make any sense :)
I am a week late in jumping on this but here goes anyhow:
I am also working on fixing bad credit and the bottom line is that a paid collection does nothing good for your credit score, it actually can tank your score a bit, like they said repeatedly above.
I think I know what you are getting at though...it SHOULD be reported as a paid collection/chargeoff with a zero balance...but it won't be gone. What you can do is pick apart the tradeline, chose something that is wrong in the reporting and dispute it. If they fix it then you go on to the next bit that is wrong...as long as you do not dispute the same thing twice (unless they verified wrong information) you shouldn't get a frivolous response. If they do verify wrong information then take them to court...if you are suing them for a thousand or two they may be interested in removing the account as a settlement. It's worked for me. :)

Remember that when you're applying for something like a mortgage or any home-equity loan that the score itself is not inherently the most important thing as long as it's not below 660 or so and in not in the dumps you can get a mortgage but the thing is if you have collections they want to see them paid. Of course you'd get a crappy interest rate that low score, but it is important to, at the very least, make sure the collection reports as paid. You may not qualify for an Amex with that collection reporting because, unless you call underwriting, the computer is analyzing your report. Not like a mortgage where you have a professional picking apart your report

Thanks for the information mate. It has been so difficult to find out reliable payday loan lenders these days. No Advertising as per TOS
:hug: