Closed (paid) vs Derogatory

[TheEmperorsMom]

I have searched a bit on the site and haven't found an answer to my question, so I decided to ask you knowledgeable people. I had a credit card that went to collections a few years ago, but not long enough to drop off of my report. I made payments with the CA for a bit, then was able to pay off the balance approx. 8 months ago. TU and Experian list the account as Closed (paid),whereas Equifax reported the account as "derogatory" when I paid the balance in full. I had been making on time payments prior to paying the balance, as I previously said.

Can I dispute the derogatory with Equifax? It is worth it to my credit score, or could it bring it as a recent negative? I am looking to buy a home in 6 months or so, and I am trying to fix up my credit as much as possible!

Let me know if you need any additional info to help with suggestions.

[Lian]

A collection appearing on your CR is by definition a derogatory item in your CR.

The OC reported derogs that led up to the collection, and the debt collector reported their collection activities on the account. Payment of the debt did not alter the fact of the delinquencies and derogs reported prior to settling the debt, and they are not deleted based on payment of the debt.

Typifying an account as "derogatory" is a CR categorization, and is not itself an account status or item of information reported by the OC or the debt collector. Thus, it is not a disputable inaccuracy in their reporting.

To improve your score, I suggest that you attempt good-will letters to either the OC or the debt collector, and attempt to get the derogatory information itself deleted from your CR. That will provide score improvement.