Carroll asked in Business & FinanceCredit · 4 months ago

If I pay a credit card that is off in collections will it make the credit report start all over again for another 7 years ?

Let's say I have a Walmart credit card and it's in collections for $4,000.  It has been on my credit report for a two and a half years.  if I pay the full amount off will it drop off in the original time four and a half years or will it start back over again at 7 years.

5 Answers

Relevance
  • 4 months ago

    After you pay it off and ask for them to remove it from your credit account, it shouldn't take more than about 30 days for it to be gone.  Why would it start over again showing bad credit?  That makes no sense.

  • 4 months ago

    It will drop off your credit report after 7 years.if u pay it won’t improve it though since they had to force u to pay for it also why do u have a store credit card for $4k???

  • 4 months ago

    It will drop off in 7 years from original default. Paying it off will mark it as paid, but does not reset the clock.

  • 4 months ago

    No.  Your credit score is damaged when the event (30 day late, collections, etc) occurs.  The date you pay the debt off is not resetting the amount of time it affects your credit.  

    .

    https://www.experian.com/blogs/ask-experian/paying...

    .

    .

    Also remember that the affect lessens over time.  For example (in made up numbers), if you your debt go to collections and got a 100 point hit to your credit, a year from now that may only affect you by 80 points.  5 years from now it may only affect you by 30 points.  After 7 years, it no longer has an affect at all.  Non of this is straight line and the impact is influenced by other factors on your report as well.

  • What do you think of the answers? You can sign in to give your opinion on the answer.
  • ?
    Lv 6
    4 months ago

    The amount of time varies from place to place but yes, if it's 7 years where you are then it takes that long to drop off.  They are supposed to warn you before they send such a report in a letter "pay this within X amount of time or we are sending the report" - if they didn't do that first then complain. When you have paid it they have to send another report saying you have now paid it.

Still have questions? Get answers by asking now.