Should I pay off my negative accounts (collections), will it improve my credit?

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 credit report.

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