How long does it take for credit to recover from collections?

I checked my credit report, and was suprised to see that I have a $32.00 account in collections. The account was set up in August and I have yet to hear from any collection agency. I was shocked, as I paid this bill on the day of service and again a few months later. I never heard anything from them again, via paper bill or phone call after I paid, so I assumed the account was taken care of. Now its in collections, and my credit is down to "fair" and in the 600s'!! I'm trying to despute this whole thing and possibly pay the $32.00, once again to try at least get the account closed. If I can't prove that I paid and it stays on my record, how long will it take for my credit to go back up to above 700? I have good credit habits otherwise, and I have 11 accounts with a perfect payment history according to the report. I was planning on buying a house in about 5 years, and want to be able to get the rate I deserve with my otherwise perfect credit history.|||After about 2 years the impact to your score starts to diminish.|||I WOULD PAY THE $ IF YOU DO NOT HAVE A RECORD OF PAYMENT. ASK THEM TO REMOVE THE COLLECTION AS YOU HAD PAID AND IT WAS A MISTAKE ON THERE END. YOU NEVER KNOW IT MIGHT WORK. I WOULD ALSO SEND THE 3 CREDIT REPORTS A RECORD OF YOUR NEW PAYMENT.|||Call the collection company and tell them you are disputing the charge - then call the original collector to determine if you owe the money.





If you owe it - pay it and it will come off of your credit report in 7 years.





In the future - it might be better to get rid of all these "credit" accounts so this doesn't happen. Just buy what you can afford - ie pay in cash - spending is lower than income.





Your credit score will go back up in a few years and if you pay off all your other debt - it will go up a lot faster.