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rob8675309

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What if I pay off all collection accounts in one day?
I had a few open collection accounts that were drastically holding me back. I saved up and payed all of them in one day on the same day. Also payed down a large chunk on a current good standing credit card. In a month of two will I notice a huge jump in my score?

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Maybe, maybe not.

That some accounts went to collections is not a good notice to have on your credit history and the payoff does not remove the history, which will be reported for 7 years then they will fall off.  But the credit reports WILL show that they are paid so that should be a consideration by future creditors.  Credit scores do not, unfortunately, improve overnight.  It takes a bit of time to get the data entered, even in this technology based society. 

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If they remove the collections. I hate to say it, but I believe that you acted too quickly if you did not work to get "pay for delete" agreements on the collections. Without a "pay for delete agreement" usually the collection will only be marked as paid rather than deleted. A paid collection isn't much different from an unpaid one for scoring purposes. Being that you've paid down your balance on your current card then that should help. The other thing to consider here is if the collections have been updating recently. If the collections have been updating regularly then paying them will prevent that and that will help your scores recover, but if the collections have not updated in a long time, then when the update due to your payment, it may cause a score decrease (but it will recover with time). You are just going to have to wait to see what happens and I wish you the best outcome possible. Also, keep in mind that paying the collections can prevent you from getting sued for them, so that is a good thing. Start doing some reading on how to write a "Goodwill Letter" to any of the collection companies that do not remove the account that you've paid.

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