Zero balances and paid off debt still show up negative!

[wintn27]

Hi- I just obtained my credit report for this year..and I have some questions

1) I have several accounts listed under "negative or adverse accounts" but the balance says zero, and past due says zero. Pay status: paid or paying as agreed

I don't understand...why is it still under the negative section if I've paid it off or have a zero balance?

2) I paid an old debt through a collection agency, and it still shows up as negative! It won't be removed for another 4 years! The amount is only 120 dollars and I paid that already. Pay status: payment after charge off/collection date closed: 6/2008 date paid: 6/2008

Can someone explain this to me or suggest if it's possible to have these removed??

[swtprncess281]

If it's valid then it is likely that it can not be removed. It appears that they are reporting it correctly (Paid).

It's still showing as a negative because even though the balance is zero, it's still a collection account. The fact that it had to go to collections before it actually got paid still counts against you.

sucks...i know...

[Methuss]

A paid collection is still a collection account. Colelction accounts are negative no matter if you paid them or not. They are more negative if they are unpaid. The point is, you are penalized if a debt ever gets to a collection agency.

Thankfully, the FICO model decreases the damage over time. A paid collection may still be on your credit report 3 years after you paid it, but it is probably only costing you 5 or 10 points at the most.

[Carolinablue]

Have you disputed it yet with the CRA's? Most collection agencies do not bother to verify a paid collection.