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Masfi

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Collections accounts
I'm paying off old bills that have been sent to collection, can this lower my credit score? Also, is it better to "Settle" or "Pay in full" ? Which helps give you a higher score?

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It is possible that your score will drop, if the collection hasn't updated in a long time and you do something with it, it will update and look fresh. Settled or paid in full are the same and neither will improve your credit score, of course under manual review "paid in full" always looks better, but as I've said scoring is not affected either way, nor does your score go up on the grounds of having either settled or paid in full on the account.

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Where it can help your score is if the amount owed is affecting your credit utilization. It can also help if the collection is updating monthly and you get it to stop updating by closing the account.

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Before you go any further in your endeavor of paying off old collections, spend some time educating yourself thoroughly, because mistakes can be costly when dealing with these things. Do some research on PAY FOR DELETE agreements, STATUTE OF LIMITATIONS, CREDIT REPORTING TIME PERIODS, PAYING COLLECTIONS.  Be extremely careful entering into any payment agreements with debt collectors, you can end up in a terrible deal and also reset the statute of limitations for you to be sued for the account.

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