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Jaytexas

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I owe 580$ in collections. I have never had any loans. Why is my Credit score 524
I've never had any type of loans or any credit cards. I owe 580 in collections and that's it. I've read that paying off collections doesn't raise your credit score so I'm confused on what I should do to raise my score. It's currently at 524.

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Collections are bad!  You state you had no loans or credit cards. You didn't pay something you were supposed to. Start reading the articles here and other sites to read about credit and educate yourself.

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No Credit

It seems your score would be so loan because you have no credit accounts but the collections shows you don't pay money you owe. Having credit cards, auto loan, home loan, or better yet a mixture of types of credit accounts current establishes you as someone trustworthy of credit hence a higher score. Pay off the 580, secure some sort of credit account which you keep up to date and your score will go up.

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