If you have a collection account on your credit that has been paid, but it is still harming your credit score, you may be in luck.
Fair Isaac Corp. (FICO) the company that developed the FICO score, issued a Press Release on August 9, 2014. Their new credit scoring formula or algorithm will not count collection accounts that have been paid. This is a help to consumers, who up to now, if they paid a collection account, could suffer a temporary reduction in their score because paying the account created a more recent date of last activity.
Also, the press release indicates that medical collections will not count as much as they did before. Again, this should be a boon to consumers. Many people, particularly those with health or medical problems, can't pay all that their doctors and hospitals demand.
Oftentimes after a chapter 13 case is discharged, and I am helping a debtor clean up their credit reports, they have medical collections that have happened after the bankruptcy is filed. Not much I can do for them there, but from now on, those should not count as much against their credit. And if they can pay them, they may not affect their credit score at all. At least that's what I'm led to believe by the FICO Press Release.