No. Companies will state that they will “update” your credit file when you pay the account but this is only updating the status to “PAID” not removing the default. Once a listing is made it will be recorded on your file for years. Even if you pay the debt, the listing will remain for the world to see. It is still important to pay outstanding amounts and skipping making further payments can make matters worse. The default will only be updated to a Paid status but will still remain for 5 years from the date it was listed. To remove the default earlier, you must challenge the default.
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