Credit glossary
Paid in full
An account status showing a debt was repaid in its entirety, as opposed to settled for less than the full balance.
Paying in full ends what you owe, but it doesn't erase the history. A collection paid in full updates to paid and stays until its 7-year date, measured from the original delinquency, and earlier late payments on a paid account stay too. The upside depends on the score: FICO 9, FICO 10 and VantageScore 3.0 and 4.0 ignore paid collections, while FICO 8 and older mortgage FICO versions still count them.
Paid in full and settled are different statuses, since settled means the creditor accepted less than the full balance. When you pay, get a letter confirming the account is paid in full, then check that each bureau shows a $0 balance a month or two later. If one still shows a balance, that letter is the evidence for your dispute.
Guides that go deeper
- Should you pay a collection account? How to decidePaying a collection doesn't remove it, and the score effect depends on the model. How to decide, what to verify first, and how to pay safely.
- Settling a debt for less than you owe: credit and tax effectsSettling closes a debt for less than the balance, but it's reported as settled and the forgiven part can be taxable. The math and the 1099-C, explained.
- How collections affect your score in FICO 8, 9, 10 and VantageScoreThe same collection can count fully, count less, or not count at all depending on the score version. A model-by-model look at paid, settled and medical debt.
Sources
- FICO Score versions, myFICO
- How do collections affect your credit?, myFICO
- 15 U.S.C. 1681c: Requirements relating to information contained in consumer reports, Legal Information Institute, Cornell Law School
- How long does negative information remain on my credit report?, Consumer Financial Protection Bureau
This is education, not legal or financial advice. Spot an error? Tell us and we'll fix it.