Will My Score Rise When a Bill Comes Off My Credit Report?

Reader Question: If after 7 years a bill comes off my credit report, will my score go up?

If by a "bill" you mean a negative entry such as outstanding debt or a collection item, then yes ... your credit score will likely go up when that item is removed from your credit report. It might go up a lot or a little, depending on various factors.

Also keep in mind that, over time, a negative item on your credit report will have less of an effect on your score. In other words, negative entries tend to get "diluted" with age. For example, when a collection account is first reported to the credit reporting agencies, that's when it will have the biggest impact on your score. As time goes on, the impact lessens. So by the time that item comes off your report (at the seven-year maximum for most negative items), it may only increase your score a few points.

Other factors that influence the effect:

Is the negative entry an isolated event, or is there a pattern of unpaid bills and collections? If it was a one-time isolated event, your score may increase significantly when the item comes off. If it's part of a larger pattern of unpaid bills and collections, then your score will increase less dramatically when the item comes off -- if at all.

So to sum up -- yes, you will probably see your credit score rise when the negative entry comes off your report. The size of that increase will depend on a variety of factors. Be sure to check your report at that point, to make sure the item is removed. If it's not, you'll need to dispute it with the reporting bureau(s).