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

Home Forums Improve Credit How much does paying off a collection agency improve your credit score?

This topic contains 5 replies, has 2 voices, and was last updated by  admin 3 years, 1 month ago.

Viewing 6 posts - 1 through 6 (of 6 total)
  • Author
    Posts
  • #38905

    admin
    Participant

    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.

    #169231

    admin
    Keymaster

    Since it went to collections first before you paid them, probably nothing.

    #169232

    admin
    Keymaster

    It won’t change, it still says you went delinquent. You should have had them change that as part of the deal before you paid. But it’s too late now.

    #169233

    admin
    Keymaster

    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.

    #169234

    admin
    Keymaster

    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.

    #169235

    admin
    Keymaster

    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.

Viewing 6 posts - 1 through 6 (of 6 total)

You must be logged in to reply to this topic.

Review are closed.



About Satelec2003

We own a network of content-rich, proprietary websites focused on specific vertical categories, including mortgages, deposits, insurance, credit cards and other personal finance categories. Through this network, as well as co-branded web sites hosted by our network of 90+ online distribution partners, we provide the tools and information via a suite of products and services that can help consumers make better informed financial decisions.