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If I pay off a collection account will my credit score improve?
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In an attempt to raise my credit score I got a copy of  all of my credit reports and paid off all of my collection accounts within a month. There was like 6 of them. After a month they were all reported to the bureaus as "Paid" or having a Zero balance but they are still under the "Potentially Negative" catagory on my report. My score did not change one bit even though I technically owe nothing to creditors. I am beyond annoyed by this. Now I am starting to hear from people, including financial advisors, that it is better to just leave them be and not pay them. Once they reach collection status they will be negative no matter if you pay them or not. And if you DO pay them, like I did, you reopen the account so it stays on your report for seven years from the day they are paid rather than 7 years from when they were first reported. So i screwed myself by doing the right thing.

 I was advised to open a secured credit card, which I have done through Capital One, and my score should improve if I keep the balance below 30% of my limit.

It's a shady world out there people. Good Luck!

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I gota tell ya it's tricky with collections.  I however, did not have the money to pay my collections on my credit  report and had to let them run their course so to speak.  Well, I am here to tell you that when anyone tells you that you should let them ride their course,  DO IT.  I tried what you did several years ago with the same results.  So here is the crux of the matter:  I found that paying them off makes your credit   WORSE.    Leaving them ride out the seven years makes your credit BETTER.  I too have just got a secured cc and I have had it for 3 months.  I had checked my score on here about a month ago and there was no change.  Today it has increased by about 100 points.  So ty secured cc for making my credit better and I hope this helps you

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Haven't tried it yet

Helpful to 31 out of 31 people

I found this pay for deletion sample letter I have not tried it yet but it looks good.

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Yes your score will improve once it's paid off. Make sure you ask for pay to delete option. It is always good to negotiate the amount with them and ask for paid in full letter as a proof that it has been paid in full. 1 collection account will increase up too 30 points on your credit report. It takes almost 30 days to update. If you settle the amount less then what you owed it will still impact on your report as negative. You can always dispute the amount with credit agency and have them update the record with in 30 days. Hope it helps. 

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3rd party collection agencies....

Helpful to 8 out of 8 people

HAVE NO CONTRACT with you to legally come after you for anything! If you want to get rid of something that has been sold from the original company to a collection agency do the following.. Sign up for an account at Go through each item and for those that state they are owned by a collection agency, dispute them and select the option "contract has been cancelled" and in the comment area write "NO CONTRACT". I have done this and have helped many others with the process to EASILY get rid of tons of debt... STOP PAYING 3rd party collectors! Unless you like giving your hard earned money away... Knowledge is power! :) <3

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