If I Pay Off My Collection Account, Will the Original Debt Show As Paid?

When you have paid off a collection account, you should rightfully expect to have that information reflected in your individual credit report. However, it is important to check your report to ensure the collection agency reported it accurately.

Documentation

Hold on to your proof that the collection was taken care of until you can see that the debt has a "Paid" status on your credit report. Significant documentation includes collection agency invoices, copies of processed checks used to make payments, and any other written correspondence between you and the collection agency.

Time Frame

Communication between the collection agency and the major credit reporting agencies takes approximately two months. You should wait an appropriate amount of time before ordering your report in order to see the most updated information.

Benefits

Although paying off a collection may not affect your credit score right away, it does reflect well for other creditors who may be reviewing your report. Paid off collection accounts can be viewed as goodwill on your part and can work in your favor.