The removal of a collection account from your credit report will not have a significant impact on your credit score. The most important factor in determining your credit score is the amount of debt you owe relative to how much you earn.
Does Paying Off An Account That Went To Collections Improve Your Credit Score? | Should I Pay Them?
How to PROPERLY PAY OFF accounts in Collections and REMOVE IT from Credit report
There is no concrete answer to this question, because how much it will lower your score will depend on the amount by which it has already lowered your account. If deleting it raises your standing by 100 points — because removing a negative marking increase any good ones — then you should remove it and see if the change does at least as much for you as it did in lowering your account’s standing.
Honestly, there is no one response – it depends on how the collection impacts your current credit score. Social Security might have lowered your score by 100 points or more, which will require a 200-point increase in order to regain that lost ground.
Make sure the account is old enough to be off your credit report. Contact the three major credit bureaus and confirm if you had it correct in first place. Send a letter to verify with local companies that some may still have an outstanding amount due and not aware of your updates with them. Do send out letters or call on people who reported negative information about you as well, since they’re allowed to remove info that’s outdated after 7 years from your record. Have patience of course; make sure you get all experts on board before giving up–talk to lawyers, financial consultants, customers service reps at reporting agencies, regulators (CFPB), etc., especially if there are new errors involving fraud or identity theft has arisen post-holiday
You can improve your credit score by making payments on time, not opening new accounts, and staying below your credit limit.
It depends on the reason for the dispute. If it was a result of an error, then removing it will not hurt your credit. If it was due to fraud or identity theft, removing the dispute may make you look guilty and hurt your credit score.