If your credit card account was charged off and sold to a collection agency should the credit card company report it as being paid satisfactory or a collection charge off?

Answer

Having your credit card or any other account 'charged off' or reported as a 'collection' means that your balence had not been paid satifactory up until that point. If you pay these derogatory accounts after they have been charged off or reported as a collection account, and one should always pay them off, then the company should report the new status to the credit bureaus. (this is something you should keep your eye on to make sure they are following protocal).

This however, will not remove the fact that they were charged off or in collection at some point. It will simply show the charge off/ collection as being paid in full. With that being said, once the C/O or Collec. accounts are paid, they will still have a negative effect on your credit score for quite sometime, but will have a much lesser effect than having not been paid off.

Also, if a derogatory account is not paid, often the company will report the charge off or collection multiple times for years to come. Each reporting will negativly effect your score and in turn, continue to bring your score down.

Contacting the companies that are reporting you to the bureaus, either before they go into collections or after, is always a good idea to keep them from pursuing further action against you.

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First answer by Crazygirl. Last edit by Crazygirl. Contributor trust: 132 [recommend contributor]. Question popularity: 28 [recommend question]


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