Logically you would think that paying old debt would help
improve your credit . But most things about the credit reporting system which
impacts some of the most important parts of our lives, makes no sense at all.
Paying off old collection and judgment accounts actually don’t help your credit
rating. Once negative credit items are on your credit report, they’ll stay
there whether you pay them or not.
Whether or not you pay your negative accounts really is a
personal decision. I am mot an advocate to pay off old accounts because I know
that you actually don’t have to.
Paying off negative accounts will actually lower your credit
score and the account will remain on your credit for 7 more years from the date
you pay the account.
For more details on how to deal with collections, see my
article, “why paying
collection accounts will damage your credit score”. That article will
help you better understand how to deal with old negative accounts on your
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