Home / Node

Will Paying A Collection in Full Improve Credit Scores?

Will paying a collection account off in full improve one's credit scores?

I feel like I've answered this question hundreds of times over the past 8 years as I've moderated our Credit Talk Forum. But when I was asked the same question last week by a close friend, it once again reminded me just how confused the average consumer remains regarding collections and how they affect credit scores.

Avoid On-the-spot Signups for Retail Credit Cards

Retail credit cards can become a huge problem for those who find it difficult to just say no to the "get 10-percent off your purchase today" sales tactic. Remember that credit card companies are in business to make money, and the whole point of a retail credit card program is to get you to spend more money at a particular store than you would have in the first place.

on Mon, 2016-06-20 14:57

It's been public knowledge for quite some time that Citigroup would buy Costco's entire credit card portfolio in 2016. But while we knew that Costco's 16-year relationship with AMEX would come to a screeching halt at some point this year, we didn't know exactly when that would take place.

Discover® Bank CDs

  • Offering consistently high rates so you earn more

  • FDIC-insured up to $250,000 per depositor

  • Great rates, flexible terms

More Info

Discover Online Savings Account by Discover Bank

  • Pays 5X the national savings rate!

  • Online money transfers are fast and FREE

  • 24/7 live customer service from a real person

More Info

Love my Barclay Arrival Plus

Anonymous's picture

Card Purpose:

Anonymous Would recommend to a friend.
Reviewed on: Thu, 2016-06-16 16:09
Have an issue with this review?
Please login or register to flag this reviewClose
This review is the subjective opinion of a creditnet.com member and not of creditnet.com

Ask Creditnet: Will Paying a Cell Phone Bill Improve Credit Scores?

Dear Creditnet: I just got a new cell phone and the salesperson mentioned that paying my bill on time each month will help improve my credit. Is this true? If so, will the new cell phone bill have the same type of positive effect on my credit scores as my student credit cards and student loans? - Sandra L. from CA

Ask Creditnet: Help! My Corporate Credit Card is in Collections

Dear Creditnet: I'm currently receiving collection notices from American Express for an unpaid balance on an old corporate credit card. I left the company where I had this card in late 2011. I have combed through all my Amex bills, corporate expense reports and reimbursements, but I've been unable to find any unpaid charges on the card. In addition, because the card was in my name and I incurred all the charges, my former employer takes no responsibility for the unpaid balance even though the charges were made solely for work purposes. Will this affect my personal credit? What should I do now?

What Are the Risks of Co-signing?

If you haven't been asked by a close friend or family member to co-sign on a loan or credit card application yet, consider yourself lucky. Chances are you will be asked at some point in your life, so why not prepare yourself to give the right answer now?

on Tue, 2016-06-07 15:31

Disputing Errors On Credit Reports: How to Think Outside the Box

According to a report released by the Federal Trade Commission in 2013, 21 percent of American consumers have errors on their credit reports. And since the major credit reporting bureaus track the credit histories of roughly 200 million Americans, that means we can estimate some 42 million of us have errors on our credit reports. That’s a lot of errors!