How much does paying off a collection agency improve your credit score?

home Forums Improving Your Credit Score How much does paying off a collection agency improve your credit score?

This topic contains 12 replies, has 5 voices, and was last updated by  twarin 4 years, 10 months ago.

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  • #207467


    I had 5 credit cards go into collections, I have paid off all 5 and wonder how many points that will increase my credit score.

  • #269256


    Paying them off won’t have an immediate bump in your scores, in fact they could actually dip a little, since you’ve made the “date of last activity” more recent.

    What you need to do now is dispute all the collections, and try to get them deleted or removed. There is bound to be some inaccuracy you can argue about, or just say it’s not yours. If the collection is paid, most collectors won’t bother responding to the dispute. And it goes away.

  • #279099


    I have to disagree with those who say it won’t raise your score. It might not raise it fast, but…

    I have made my way out of debt and had to pay some collection agencies. In one three-month period, my score (through equifax) jumped up 30 points. All that I had done recently was make timely payments to one agency and pay off another.

    Over the period of a year, it increased about 60 points, with me making regular, timely payments.

    That’s just my experience.

  • #283022


    It won’t increase your score. The only things that do are 1) paying your bills on time and 2) reducing your overall debt.
    Once accounts go into collections, the damage is done and paying those off will not raise your score. Sorry.

  • #437638

    Lock it in. Rates are rising.

  • #437639

    I would lock it in. Often if it goes down, they will give you the lower, but at least it won’t go up for you if it does go up.

  • #437640

    Flip a coin.

  • #437641

    Lock it in. Remember since you have a fixed rate, you can pay extra each month which would cut down on the interest. On the first 15 year on a 30 year mortgage, you pay about 70%. That’s how most banks make their money.

  • #437642

    Lock that rate.

  • #437643

    My husband and I did this two years ago, and this year not only did our house payment go down, but we got money back from our escrow account.

  • #437644

    From what I have read and heard from people in the banking industry, interest rates are not expected to change in the next 60 days. So, I would just spare yourself the anxiety and lock it in now. 5.6% is a good rate.

  • #437645

    Since that rate is quite a bit more than I locked for in April, I’d say grab it. Make sure you know if there are fees to lock a rate for longer than 30 days though, or if it’s like my rate, that because they’re taking so long to process, they just keep renewing my rate at no cost to me.

  • #437646

    Lock in. You can re finance in 6 months if you don’t make any late payments.

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